Major International Business Headlines Brief::: 09 February 2018

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Major International Business Headlines Brief::: 09 February 2018

 


 

 


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

 


 

 


*  Zimbabwe negotiating $1.5 billion guarantee with Afreximbank - c.bank
governor

*  Japan's man in UK says unprofitable firms could not stay

*  Twitter posts its first quarterly profit as ad sales rise

*  Bank of England hints at earlier and larger rate rises

*  TalkTalk shares slump after profit warning

*  Brexit will allow a UK-Japan free trade deal, says May

*  Rising wage bill hits Manchester United profits

*  Fox still expects to win Sky takeover

*  Citigroup targets rapid Middle East, Africa growth in 2018

*  Egypt's annual urban consumer price inflation falls to 17.1 pct in Jan:
CAPMAS

*  Ethiopia's inflation eases to 13.4 pct y/y in January

*  Mauritius inflation rate inches up to 6.2 pct in January

*  Petra Diamonds seeks debt deal to avoid loan default

*  Kenyan shilling strengthens on agriculture sector inflows, low demand

*  South African rand steady, all eyes on Zuma exit talks

*  MTN Nigeria discussing IPO at Lagos board meeting: company source

*  Congo minister declines to say whether new mining code signed into law

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Zimbabwe negotiating $1.5 billion guarantee with Afreximbank - c.bank
governor

HARARE (Reuters) - Zimbabwe is negotiating a $1.5 billion guarantee with
Afreximbank to ensure foreign investors’ funds are protected, central bank
Governor John Mangudya said on Wednesday.

 

Mangudya added that Zimbabwe, where Mnangagwa is trying to woo foreign
investors, was also arranging a $400 million facility to ensure payments for
critical imports and allow investors to repatriate funds.

 

“Such guarantees and liquidity support are necessary to protect investors’
funds from country risk, and in doing so, enhancing investor confidence,”
Mangudya said in a monetary policy speech.

 

Mangudya also announced a raft of measures that he said would help the
economy, including increased financial support to small-scale gold miners
and tobacco farmers. The two commodities generate the highest export
earnings for the country.

 

The central bank governor also said the bank would work to reduce
government’s borrowing from the bank. The government has overdraft of $1.2
billion instead of $800 million permissible under the law, Mangudya said.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Japan's man in UK says unprofitable firms could not stay

Japan's ambassador to the UK has said Brexit is a high stakes issue and that
no company would be able to stay in the UK if it was not profitable.

 

Koji Tsuruoka was speaking outside Number 10 after a meeting between Prime
Minister Theresa May and 19 top Japanese bosses.

 

Mrs May had told the business leaders that Brexit would allow the UK to
strike a free trade deal with Japan.

 

She said the government's industrial strategy made the UK "more attractive".

 

However, Mr Tsuruoka told journalists: "If there is no profitability of
continuing operations in the UK - not Japanese only - no private company can
continue operations. So it is as simple as that."

 

He was asked about the threat to Japanese companies if the UK did not secure
a frictionless trade deal.

 

"This is all high stakes that all of us, I think, need to keep in mind," he
answered.

 

During the meeting Mrs May told attendees from companies including
Mitsubishi, Honda, Nissan, Toyota and Panasonic that Brexit was "no small
undertaking".

 

She also said the government's modern industrial strategy made the UK "more
attractive".

 

"Just today we have seen the Bank of England raise its forecast for UK
growth compared with its estimates three months ago," Mrs May added.

 

The meeting comes amid concern over estimates of the impact of Brexit on
economic growth.

 

Chancellor Phillip Hammond, Business Secretary Greg Clark and International
Trade Secretary Liam Fox were also at the meeting.

 

"I recognise that the UK's forthcoming exit from the European Union is no
small undertaking, but importantly it does present the opportunity to strike
free trade deals around the world and build on our already very strong
relationship that we have with Japan," Mrs May told the assembled bosses.

 

"As we look to the relationship between the UK and Japan we see already
year-on-year trade between our two countries continues to increase, with
Japans's investment in the UK reaching £46.5 billion in 2016."

 

Alongside the car companies Honda, Nissan, Mitsubishi and Toyota,
representatives from Japanese banks and drug companies were also due to
attend the meeting.

 

Japanese firms have spent billions of pounds in Britain over the past
decades, encouraged to set up in the country by successive governments
promising a business-friendly base from which to trade across the continent.

 

EU 'seeks single market sanction power'

Pressure on May to choose over Brexit

Nissan, Toyota and Honda began their UK operations in Britain in the 1980s
and now build nearly half of all of Britain's 1.67 million cars. The big
majority of these are exported.

 

The motor industry has expressed concern that their exports could face
tariffs of up to 10% and be subject to customs delays after Britain leaves
the European Union.

 

Japanese drug companies have also made Britain their European base. Some are
concerned about future drug regulations, with any divergence with the EU
likely to pose regulatory challenges.

 

London is also home to Japanese banks, such as Nomura, Daiwa Securities and
Sumitomo Mitsui Financial. Like other foreign banks, they are keen to know
about trading and so-called "passporting" arrangements for access to the EU.

 

In 2016 Nissan chief executive Carlos Ghosn met prime minister Theresa May
amid fears over the future of its production plant in Sunderland.

 

Nissan sought assurances over post-Brexit arrangements ahead of future
investment in the Sunderland plant, Britain's biggest car factory.--bbc

 

 

 

Twitter posts its first quarterly profit as ad sales rise

Twitter has reported its first quarterly net profit helped by a rise in
video advertising sales.

 

The news sent Twitter's shares surging more than 18% in early morning
trading in New York.

 

That was despite the number of people using the social network coming in
below expectations.

 

Twitter's previous failure to make a profit had confounded investors given
its widespread use and popularity among celebrities and politicians.

 

Net profit was $91.1m (£65m) in the fourth quarter of 2017, compared with a
loss of $167.1m for the same period a year ago.

 

Twitter, which has posted consistent losses since it became a public company
in 2013, said it expected to be profitable for the full year of 2018 as
well.

 

The company has found success with video and other changes, deepening the
experiences on offer, James Erkine, director at marketing firm The Social
Circle, told the BBC.

 

"It's now about taking that scalable model and using it to reach new user
groups to increase their user base," he said.

 

"Hopefully now they've made a profit once, they should be able to do it next
quarter and carry on doing it."

 

User growth

In October last year, Twitter had suggested a profit was likely as it sought
to cut costs, including by slashing stock-based compensation.

 

Revenue in the quarter rose 2% to $732m, as growth internationally offset a
decline in the US.

 

User growth, however, remained fairly flat.

 

The firm reported 330 million active users a month, a rise of 4% on last
year but no change on the previous quarter.

 

Monthly active users in the US were down to 68 million from 69 million in
the third quarter.

 

Twitter said user numbers had been hurt by changes made by Apple to its
Safari web browser.

 

A crackdown on fake accounts also contributed to the lacklustre growth, it
said.

 

The firm has faced controversy over use of the platform during political
events, including Brexit and the 2016 presidential election in America.

 

The firm's shares were trading around $32 per share in mid-morning
trade.--bbc

 

 

 

Bank of England hints at earlier and larger rate rises

The Bank of England has indicated that the pace of interest rate increases
could accelerate if the economy remains on its current track.

 

Bank policymakers voted unanimously to keep interest rates on hold at 0.5%
at their latest meeting.

 

However, they said rates would need to rise "earlier" and by a "somewhat
greater extent" than they thought at their last review in November.

 

Economists think the next rate rise could come as soon as May.

 

The value of the pound jumped by about 1% against both the dollar and the
euro in reaction to the Bank's comments.

 

Higher interest rates have an important effect on households and the
economy.

 

Around 8.1 million UK households have a mortgage, and of those almost half
are on either a standard variable rate or a tracker rate.

 

Interest rates on those types of mortgages would be likely to match any
increase in official rates made by the Bank of England.

 

But for savers a move higher by the Bank of England could be a bonus, as
High Street banks generally have to raise their rates of interest.

 

In November, the Bank raised the cost of borrowing for the first time in
more than 10 years - from 0.25% to 0.5%.

 

Its forecasts at the time indicated there could be two more increases of
0.25% over three years.

 

But it now appears there could be a third increase and those rises could be
sooner than expected.

 

"The Committee judges that
 monetary policy would need to be tightened
somewhat earlier and by a somewhat greater extent over the forecast period
than anticipated at the time of the November report," minutes from the
Monetary Policy Committee's (MPC) meeting said.

 

The Bank noted that the global economy was expanding at the fastest pace in
seven years and that the UK was benefiting from that growth.

 

It also thinks that UK wage growth will start to pick up, giving the economy
a further boost.

 

As a result, the Bank has raised its growth forecast for the UK economy to
1.7% this year, from its previous forecast of 1.5% made in November.

 

But it says its forecasts are based on a "smooth" adjustment to Britain's
departure from the European Union.

 

Today the Bank signalled that the old conventions of increasing interest
rates when inflation is above target would return.

 

The cost of mortgages is likely to rise and savers at last will see returns
improve.

 

The economy is stronger, the Bank has made clear today.

 

But not everything in the garden is rosy.

 

It points out that the UK economic engine still "remains restrained by
Brexit-related uncertainty" which is "the most significant influence on the
economic outlook".

 

We are driving along with the hand brake half on.

 

Growth is modest by historic standards and the UK has gone from the fastest
growing economy among the G7 largest global economies to the slowest.

 

Read Kamal's blog in full

 

Rate rise timing

Economists think it is likely that the next rate rise will come in May, but
are not certain.

 

"All told the MPC has signalled to markets that a May rate hike is under
active consideration, but is far from guaranteed... we still think that the
MPC will hold back until August," said Samuel Tombs, chief UK economist at
Pantheon Macroeconomics.

 

Paul Hollingsworth, senior UK economist at Capital Economics said: "Today's
releases pave the way for an interest rate hike in May, and we think that
the MPC will hike a further two times this year, taking Bank Rate to 1.25%."

 

Official figures last month showed that the economy grew 0.5% in the last
three months of 2017, which was faster than economists had been expecting.

 

Unemployment remains low at 4.3% and inflation edged lower in December to
3%.

 

The Bank also released the letter sent by governor Mark Carney to the
Chancellor of the Exchequer, Philip Hammond, to explain why inflation had
breached the target rate of 3% in November.

 

In the letter, Mr Carney said that higher inflation was "almost entirely"
due to the effects of a rise in the prices of imports, caused by the fall in
the pound's value after Britain voted to leave the European Union.

 

The chancellor replied by stressing the importance of boosting UK
productivity and the government's efforts to make that happen.--bbc

 

 

 

TalkTalk shares slump after profit warning

Shares in TalkTalk have tumbled more than 10% after the firm warned that
profits would be significantly lower this year than previously thought.

 

TalkTalk also slashed its dividend and announced plans to raise £200m by
selling shares on the stock exchange.

 

The firm is raising money to invest in a network of fibre cables that would
allow much higher broadband speeds.

 

However, this year the telecoms group said expects a key measure of profits
to be between £230m and £245m.

 

That is much lower than its forecast made in November, when it expected the
same profit measure to be between £270m and £300m.

 

'Real momentum'

The company plans to build a fibre network that will supply high-speed
broadband to three million homes and businesses.

 

To do that it has formed a joint venture with Infracapital, and TalkTalk
will take a 20% stake in that business.

 

"We are making good progress towards putting TalkTalk at the heart of
Britain's fibre future by building a full fibre network, bringing faster,
more reliable internet to millions of homes and businesses," said Charles
Dunstone, executive chairman of TalkTalk.

 

Will the roads be dug up for a new fibre network?

TalkTalk most complained-about broadband provider

Three million homes to get ultrafast broadband by 2020

Last week, Openreach, the BT-owned firm that manages the UK's broadband
infrastructure, vowed to introduce "ultrafast" fibre connections to three
million premises by 2020.

 

Responding to TalkTalk's announcement, Jonathan Oxley, Ofcom's competition
group director, said: "We welcome this latest announcement, which is another
example of the real momentum behind full-fibre broadband.

 

"We're making it quicker and easier to lay these networks, to bring faster,
more reliable broadband to people across the country. And we want to see
further commitments from industry to build the networks that will support
our future economy."

 

TalkTalk is planning to reach homes in what it describes as "mid-sized"
towns and cities.

 

That means it's unlikely to be offering fibre to the farm - or indeed the
mid-sized village - any time soon. So, there is a risk that the countryside
will see its digital divide with urban Britain widen further.

 

When I caught up with TalkTalk's chief executive, Tristia Harrison, she was
keen to emphasise that there would be little overlap with BT, whose
full-fibre plan is aimed mainly at big rather than mid-sized cities.

 

TalkTalk is beginning to use BT's ducts and poles for its network, after
Ofcom chivvied the telecoms giant to open them up to rivals.

 

But Ms Harrison admits that most of the work will continue to involve
digging up streets, albeit using the less disruptive "micro-trenching"
technique TalkTalk has pioneered in York.

 

More from Rory here.

 

In addition to the share sale, to help fund its investments TalkTalk said it
would "temporarily" cut its dividend to 2.5p per annum, returning to a
"normalised" dividend of 7.5p when debt levels have been reduced.

 

The company's third quarter results showed it did have some success in
attracting new business. Customer numbers rose by 37,000 in the three months
to 31 December, compared with 26,000 in the quarter before.

 

The rate of churn - or percentage of customers leaving - fell to 1.3% over
the three-month period. It was 1.6% in the previous quarter.

 

"It's 12 months since I announced my intention to take a more active role in
the management of TalkTalk," Mr Dunstone said.

 

"Since then, we have reset the business and returned it to
quarter-on-quarter customer growth."--bbc

 

 

 

Brexit will allow a UK-Japan free trade deal, says May

Theresa May has told Japanese business leaders that Brexit will allow the UK
to strike a free trade deal with Japan.

 

In the Downing Street meeting she told bosses, including from Nissan,
Mitsubishi, Panasonic, and Honda, that Brexit was "no small undertaking".

 

The prime minister also said the government's modern industrial strategy
made the UK "more attractive".

 

The meeting comes amid concern over estimates of the impact of Brexit on
economic growth.

 

Chancellor Phillip Hammond, Business Secretary Greg Clark, and International
Trade Secretary Liam Fox also attended the meeting.

 

"I recognise that the UK's forthcoming exit from the European Union is no
small undertaking, but importantly it does present the opportunity to strike
free trade deals around the world and build on our already very strong
relationship that we have with Japan," Mrs May told the assembled bosses.

 

"As we look to the relationship between the UK and Japan we see already
year-on-year trade between our two countries continues to increase, with
Japans's investment in the UK reaching £46.5bn in 2016."

 

"Just today we have seen the Bank of England raise its forecast for UK
growth compared with its estimates three months ago," Mrs May added.

 

Representatives from Japanese banks and drug companies also attended the
meeting.

 

Japanese firms have spent billions of pounds in Britain over the past
decades, encouraged to set up in the country by successive governments
promising a business-friendly base from which to trade across the continent.

 

EU 'seeks single market sanction power'

Pressure on May to choose over Brexit

Nissan, Toyota and Honda began their UK operations in Britain in the 1980s
and now build nearly half of all of Britain's 1.67 million cars. The big
majority of these are exported.

 

The motor industry has expressed concern that their exports could face
tariffs of up to 10% and be subject to customs delays after Britain leaves
the European Union.

 

Japanese drug companies have also made Britain their European base. Some are
concerned about future drug regulations, with any divergence with the EU
likely to pose regulatory challenges.

 

London is also home to Japanese banks, such as Nomura, Daiwa Securities and
Sumitomo Mitsui Financial. Like other foreign banks, they are keen to know
about trading and so-called "passporting" arrangements for access to the EU.

 

In 2016 Nissan chief executive Carlos Ghosn met prime minister Theresa May
amid fears over the future of its production plant in Sunderland.

 

Nissan sought assurances over post-Brexit arrangements ahead of future
investment in the Sunderland plant, Britain's biggest car factory.--bbc

 

 

 

Rising wage bill hits Manchester United profits

A rising wage bill for players has cut into the latest quarterly profits
from Manchester United.

 

For the three months to 31 December the club made an operating profit of
£28.7m, down 23% on the same period in the previous year.

 

Wages, which make up half of the clubs costs, rose 9.4% to £69.6m.

 

Players were paid more because Manchester United was back in the UEFA
Champions League, but that also meant higher income from TV.

 

Broadcasting revenue was £61.6m, up 17% on the previous year, with total
revenue for the quarter up 3.8% to £163.9m.

 

As well as UEFA Champions League games, income during the quarter was
boosted by two extra Premier League games that were broadcast live.

 

"Our solid business model has allowed us to invest in the future of the Club
with the extension of Jose Mourinho's contract as manager and the
acquisition of Alexis Sanchez. We look forward to the remainder of the
season with confidence," said Ed Woodward, Executive Vice Chairman of
Manchester United.

 

Last season, the club won the Europa League competition, securing it a slot
in the lucrative Champions League for the current season.

 

The club has reached the last 16 of that competition and is currently second
in the Premier League.--bbc

 

 

 

Fox still expects to win Sky takeover

The Murdoch-controlled 21st Century Fox has said it continues to expect UK
approval of its Sky takeover, despite a provisional finding that the deal
was not in the public interest.

 

Chief executive James Murdoch said the firm was working with authorities to
resolve concerns.

 

Mr Murdoch made the remarks on a call with financial analysts to discuss the
firm's quarterly earnings.

 

Last year, the firm struck a deal to sell assets, including Sky, to Disney.

 

That deal would leave Fox more narrowly focused on news and sports. It is
also pending approval by regulators in the US and elsewhere.

 

The firm said the two transactions are designed to set up the firm's
companies for long term growth.

 

The Sky deal, in which would Fox would buy the 61% it does not own,
pre-dates the plans for Disney and has been delayed amid opposition in the
UK.

 

In January, the UK Competition and Markets Authority found that if the deal
went ahead as planned, it would give the Murdoch family too much control
over news providers in the UK.

 

What are the issues in Fox's Sky deal?

Mr Murdoch said the firm continues to expect that deal to be approved by the
end of June.

 

"We'll continue to engage constructively... to address their concerns ahead
of their May first final report," he said.

 

US tax code

Fox said quarterly revenue climbed to more than $8bn (£5.8bn), up 4.6%
compared with the same period in 2016.

 

The firm's cable networks, which include its flagship Fox News channel,
drove the gains, which were stronger than expected.

 

Profits more than doubled to $1.9bn, due to a $1.34bn one-off benefit from
changes to the US tax code.

 

Fox chairman Lachlan Murdoch said Fox is focused on live sports as it plots
a future as a smaller company.

 

Last week, the firm said it had signed a five-year deal granting broadcast
rights to Thursday night American football games.

 

Analysts on the call questioned the costs of the deal amid rating declines
for the sport.--bbc

 

 

 

Citigroup targets rapid Middle East, Africa growth in 2018

ABU DHABI (Reuters) - Citigroup expects 2018 to be its best year for
investment banking in the Middle East and Africa in at least a decade,
likely led by Saudi Arabia, a senior executive at the U.S. bank said.

 

Nigeria, Egypt and the United Arab Emirates would also be the main growth
drivers as bond sales, mergers and acquisitions and public share sales
pick-up, Miguel Azevedo, Citigroup’s head of investment banking, Middle East
and Africa, said.

 

“The pipeline in the Middle East and Africa is as good as we have seen since
the global financial crisis of 2008,” he told Reuters in an interview,
adding that emerging markets represented a larger weight of Citi’s earnings
than for others.

 

“GDP growth for advanced economies this year is between 2.5 and 3 percent,
while for emerging markets it is between 4.5 and 5 percent. For investment
banking, the growth should maybe be even more,” Azevedo said.

 

In the Middle East and Africa, getting deals done would depend on market
stability, but swings in global stocks in recent days represented a
correction and were not “enough to put any of these transactions off”.

 

Citigroup said last month it had won formal approval from Saudi Arabia’s
Capital Market Authority to begin an investment banking business there,
enabling its return after an absence of almost 13 years.

 

SAUDI DRIVE

Several international lenders are seeking to build a Saudi presence as
opportunities emerge from reforms to wean the economy off a reliance on oil
revenues. Those include privatisations such as the planned listing up to 5
percent of Saudi Aramco [IPO-ARMO.SE].

 

Citi was among those invited to pitch for a role in the stock market
listing, sources told Reuters last month and the bank has already hired
former Saudi Fransi Capital executive Majed al-Hassoun to head its Saudi
investment banking business, which it is developing with further hires.

 

“There is a very significant privatisation push ... this could create the
opportunity for investors to deploy capital to develop the industrial base
and infrastructure,” he said.

 

The bank also expects significant opportunities in Nigeria, which has low
debt levels and was expected to return to the bond markets in 2018, while
Nigerian companies were also forecast to issue bonds and launch initial
public offerings, Azevedo added.

 

Nigeria issued a $3 billion two-part international bond in November, a deal
managed by Citigroup and Standard Chartered.

 

Egypt’s outlook was also positive after the 2016 currency devaluation and
IPOs were slated in sectors such as industrial and manufacturing and
financial services and consumer, he said.

 

 

Egypt's annual urban consumer price inflation falls to 17.1 pct in Jan:
CAPMAS

CAIRO (Reuters) - Egypt’s annual urban consumer price inflation fell to 17.1
percent in January from 21.9 percent in December, the official statistics
agency CAPMAS said on Thursday.

 

Inflation has climbed since Egypt floated the pound currency in November
2016, reaching a record high in July on the back of energy subsidy cuts. It
has gradually eased since July.

 

 

 

Ethiopia's inflation eases to 13.4 pct y/y in January

ADDIS ABABA (Reuters) - Ethiopia’s year-on-year inflation rate edged down to
13.4 percent in January, the statistics agency said on its website.

 

The Central Statistics Agency said food inflation was at 18 percent in
January, versus 17.4 percent in the previous month.

 

Non-food inflation was at 8.4 percent, compared with 9.4 percent in
December, the agency said in a statement.

 

 

 

Mauritius inflation rate inches up to 6.2 pct in January

PORT LOUIS (Reuters) - Mauritius’ year-on-year inflation rate jumped to 6.2
percent in January from 4.2 percent in the previous month, the statistics
office said on Thursday.

 

Food, non-alcoholic beverages, education and health were the main
contributors to the increase in the consumer price index in January,
statistics Mauritius said in a statement. The Indian Ocean island was hit by
cyclone Berguitta in January.

 

 

 

Petra Diamonds seeks debt deal to avoid loan default

CAPE TOWN (Reuters) - African miner Petra Diamonds is likely to strike a
deal with its lenders that could include a waiver or a reset of its debt
covenants within the next month, its chief executive Johan Dippenaar said.

 

The London-listed mining company said last week it had started negotiations
with its lenders for debt agreements relating to its EBITDA for December
2017 and June 2018.

 

The confiscation of a consignment of its diamonds in Tanzania and a labour
strike at its South African mines were the main reasons that Petra flagged
in October that it was likely to fall short of its loan obligations.

 

“We are too tight with the covenants but we discuss with the banks all the
time and we are confident that in a month or so we will have solutions to
it,” Dippenaar told Reuters on the sidelines of a mining conference in Cape
Town.

 

 

“We have illustrated a business that keeps on growing and is able to service
its debt, we are just at a turnaround point.”

 

Petra, which operates five mines in South Africa and Tanzania, reached peak
capital expenditure in its last financial half year after seven years of
investing more cash than it generated into expanding its operations.

 

The company has spent nearly $1.5 billion over the last seven years at the
Finsch and Cullinan mines.

 

Dippenaar said Petra would now focus on cutting its debt, adding that
acquisitions and explorations were not on the table.

 

Net debt at the end of December stood at $644.7 million but is expected to
fall to $560–$600 million by the end of June. The company has a syndicated
loan of about $120 million with South African banks.

 

Petra, which was accused of under-declaring the value of the stones, is
caught up in an industry-wide crackdown by the Tanzanian government in an
effort to reap more mineral revenue. Petra has denied the accusation.

 

The consignment, which was confiscated in September, has not yet been
returned but the company resumed exporting other diamond packages after a
brief government-mandated stoppage.

 

Dippenaar said the Tanzanian government had concluded questioning its
employees but it was unclear whether the full investigation was over.

 

“We are hopeful that a resolution will come out in the six months to June,”
he said.

 

 

 

Kenyan shilling strengthens on agriculture sector inflows, low demand

NAIROBI (Reuters) - Kenya’s shilling gained ground on Thursday, staying
within a 20-month high against the dollar, helped by inflows from
agricultural exports coupled with low importer demand, traders said.

 

At 0712 GMT, commercial banks quoted the shilling at 100.70/90 compared with
Wednesday’s close of 100.80/101.00. The shilling is at a new high but shy of
100.55/65 it hit on June 3, 2016.

 

 

 

South African rand steady, all eyes on Zuma exit talks

JOHANNESBURG (Reuters) - South Africa’s rand steadied against the dollar
early on Thursday, with market participants closely watching talks in the
governing party over the political future of President Jacob Zuma.

 

At 0645 GMT, the rand traded at 12.0450 per dollar, not far off its New York
close of 12.0650 on Wednesday.

 

 

Zuma was in talks with the ruling African National Congress (ANC) leader
Cyril Ramaphosa over a transition of power after calls for him to resign as
head of state.

 

Zuma, in power since 2009 and beset by corruption allegations, has been in a
weakened position since Deputy President Ramaphosa replaced him as ANC
leader in December.

 

“Local focus remains on the presidency. The latest talk is that President
Zuma could vacate his office ”within days“ but it remains hard to know what
to believe,” Rand Merchant Bank analyst John Cairns said in a note.

 

Stocks were set to open flat at 0700 GMT, with the JSE securities exchange’s
Top-40 Futures Index largely unchanged.

 

In fixed income, the yield for the benchmark government bond due in 2026 was
up 3.5 basis points to 8.435 percent.

 

 

 

MTN Nigeria discussing IPO at Lagos board meeting: company source

LAGOS (Reuters) - MTN Nigeria is discussing its planned listing in Lagos and
its business plan at a board meeting on Wednesday, a company source told
Reuters.

 

Africa’s biggest mobile phone operator had planned to list its Nigerian unit
in 2017, as part of an agreement with the Nigerian government, but it
delayed it due to market conditions.

 

 

 

Congo minister declines to say whether new mining code signed into law

CAPE TOWN (Reuters) - The Minister of Mines for Democratic Republic of
Congo, Martin Kabwelulu, declined on Wednesday to say whether President
Joseph Kabila had signed a new mining code into law that the industry
opposes because it will raise royalties and taxes.

 

The new code, which parliament approved late last month, could see royalties
on cobalt, a vital component in electric car batteries, increase five-fold
to 10 percent. It also removes a stability clause in the current law
protecting miners from changes to the fiscal and customs regime for 10
years.

 

“Journalists ask me whether the president has promulgated the code. I won’t
answer that question here. The code is with the president,” Kabwelulu told
reporters and mining executives at a conference in Cape Town.

 

International mining companies in Congo, which include Randgold, Glencore,
China Molybdenum and Ivanhoe, have said they will challenge the new law
through international arbitration and are lobbying Kabila not to sign it.

 

Congo is the world’s biggest source of cobalt and Africa’s largest copper
producer. The industry-led chamber of mines said on Wednesday that copper
production rose 6.9 percent in 2017 to 1.09 million tonnes, while output of
cobalt jumped 15.5 percent to 73,940 tonnes.

 

Gold production rose 2.7 percent to 23,270 kg, the chamber said.

 

Low commodity prices in recent years hit Congo’s resource-dependent economy
hard, causing inflation to swell to more than 50 percent in 2017, and the
government is desperate to increase its revenue.

 

The country’s state mining company said this week that it intended to start
renegotiating contracts with its international partners to boost its share
of revenues.

 

Kabwelulu on Wednesday likened the new code to a “bush fire”, saying: “The
fire is not going to destroy everything. There are plants that will keep
their roots. New plants will grow.”

 

Speaking after him, Randgold’s Chief Executive Officer Mark Bristow urged
the government to return to the negotiating table: “We can dance around, we
can ignore the elephant in the room. Or we can find a real, proper solution
for the DRC and its people.”

 

Ivanhoe Executive Chairman Robert Friedland, whose company is developing one
of the world’s largest high-grade copper projects in southeastern Congo with
China’s Zijin Mining, said he believed a compromise could still be reached
if stability clauses were respected.

 

“I am happy to pay higher royalties. I‘m not concerned about the level of
taxation. That’s not the fundamental issue,” he said. “The issue is that
mining requires stability. We just can’t get there from here without
stability.”

 

Pressed by reporters on the possibility of a new compromise, Kabwelulu would
only say that the code had gone through all the necessary stages and was now
with the president.

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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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
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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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