Major International Business Headlines Brief::: 23 February 2018

Fri Feb 23 14:26:18 CAT 2018

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Major International Business Headlines Brief::: 23 February 2018

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*  South Africa rand softer heading into the weekend

*  Google starts taking payments for apps via Kenya's M-Pesa service

*  Mozambique to propose debt restructuring plan to creditors on March 20

*  Slow economy, financing costs hit Kenya Power's first-half profit

*  South Africa's NUM union says members not paid at Gupta-owned Optimum
mine

*  Eskom says coal supplier Optimum mine starts business rescue proceedings

*  Northam H1 loss widens on BEE transaction

*  Mauritius trade deficit widens 25.2 pct yr/yr in December

*  South Africa's Truworths posts flat first-half retail sales growth

*  China seizes control of insurance giant Anbang

*  Tech giants face new UK tax clampdown

*  Women earn up to 43% less at Barclays

*  AirBnB aims to woo wealthier travellers

*  Saudi Arabia to invest $64bn in entertainment

*  Kylie Jenner 'sooo over' Snapchat - and shares tumble

*  RBS reports first profit in 10 years

 <mailto:info at bulls.co.zw> 

South Africa rand softer heading into the weekend

JOHANNESBURG (Reuters) - South Africa’s rand was slightly weaker on Friday
against the dollar, which recovered as U.S. Treasury yields levelled off.

At 0638 GMT, the rand was 0.15 percent softer at 11.67/dlr.

Expected trading range for the rand 11.60/dlr-11.80/dlr

Government bonds were also weaker, with the yield on the benchmark
instrument due in 2026 up 1.5 basis point to 8.05 percent.

The dollar index against a basket of six major currencies rose 0.24 percent
to 89.947.

“Markets stable overnight but South African government bonds will be
watching the UST yield ticking up slightly,” analysts at Nedbank said in a
note.

Stocks were set for a firm opening at 0700 GMT, with the JSE securities
exchange’s Top-40 futures index up 0.76 percent.

 <mailto:info at bulls.co.zw> 

Google starts taking payments for apps via Kenya's M-Pesa service

NAIROBI (Reuters) - Google Play apps and games store has started accepting
payments in Kenya through Safaricom’s mobile phone M-Pesa service to boost
downloads in a market where many people do not have a credit card.

M-Pesa, which enables customers to transfer money and pay bills via mobile
phone, has 27.8 million users in the nation of 45 million people where
Google’s Android platform dominates. M-Pesa has been mimicked across Africa
and in other markets.

“This is very important to the developer ecosystem in markets where credit
card penetration is low,” said Mahir Sain, head of Africa Android
partnerships at Google, which is owned by Alphabet Inc.

Safaricom has 13 million smart phones on its network, most of them using the
Android platform. It partnered with London-based global payments platform
provider, DOCOMO Digital, to enable users pay through M-Pesa, both firms
said on Thursday.

Safariom started M-Pesa in 2007, offering money transfer services between
users. It has grown to allow users to make payments for goods and services
through thousands of merchants.

It also allows users to save, borrow and buy insurance, through partnerships
with commercial banks.

Mozambique to propose debt restructuring plan to creditors on March 20

LONDON (Reuters) - Mozambique will present to its creditors the key elements
of a debt restructuring proposal and give an update on its fiscal and
macroeconomic situation at a meeting in London on March 20, the Ministry of
Economy and Finance said on Thursday.

“The government remains committed to finding a consensual and collaborative
resolution to the current debt situation through dialogue with the holders
of the Republic’s direct and guaranteed external commercial obligations,”
the ministry said in an emailed statement.

Debt-ridden Mozambique has been in turmoil since the 2016 discovery of
previously hidden loans granted to three state-owned companies, which led
the International Monetary Fund and Western donors to halt budget support,
triggering a currency collapse and debt defaults as well as hitting economic
growth.

Slow economy, financing costs hit Kenya Power's first-half profit

NAIROBI (Reuters) - Kenya Power posted a 19 percent drop in first-half
pretax profit, mainly due to sluggish economic growth and higher financing
costs.

The firm, which is the main electricity distributor in the East African
nation, suffered from lower demand due to a protracted presidential
election, which hurt economic activity.

Electricity sales increased 2.3 percent in the six months to end-December
and revenue rose by a modest 2.5 percent, the company said on Friday. Pretax
profit was 4.6 billion shillings ($45.21 million).

Financing costs jumped 11 percent to 3.2 billion shillings as the company
raised its use of short-term debt during the period.

Kenya Power said it would take advantage of the government’s plan to boost
the manufacturing sector, to increase electricity demand in the second half.

Kenya President Uhuru Kenyatta has set out manufacturing as one of his
priority areas and he has directed officials to implement a new night-time
electricity tariff for firms who wish to increase production.

($1 = 101.7500 Kenyan shillings)

South Africa's NUM union says members not paid at Gupta-owned Optimum mine

JOHANNESBURG (Reuters) - South Africa’s National Union of Mineworkers said
on Friday that its members had not been paid on time at the Optimum coal
mine, which is owned by the Gupta family, and would not return to work at
the operation which has started business rescue proceedings.

“The guys were not paid and they want a meeting with the CEO because they
are concerned about the business rescue proceedings which they were not
informed about,” NUM spokesman Livhuwani Mammburu said.

India’s Bank of Baroda, which counts the Gupta family’s operations as
clients, has pulled the plug on its South African business.

The Gupta‘s, who are Zuma’s business associates, have been accused of using
their political connections to win state contracts and influence cabinet
appointments. Zuma and the Gupta brothers deny wrongdoing.

Eskom says coal supplier Optimum mine starts business rescue proceedings

JOHANNESBURG (Reuters) - South African power producer Eskom said on Thursday
the Optimum coal mine, which is owned by the Gupta family and supplies one
of the utility’s power stations, had started business rescue proceedings.

Ajay Gupta, one of the three Gupta brothers accused of corrupt links to
former president Jacob Zuma, was declared a “fugitive from justice” last
week by South Africa’s chief prosecutor, while India’s Bank of Baroda, which
counts the family’s operations as clients, has pulled the plug on its South
African business.

South Africa’s main commercial banks have cut all ties with the Guptas,
citing reputational risk. Zuma and the Guptas have consistently denied any
wrong-doing.

Eskom, the sole power provider in Africa’s most industrialised economy, said
it was informed by Optimum, which supplies its Hendrina Power Station, that
Optimum had started business rescue proceedings on Monday.

It did not say what the rescue proceedings entailed. Optimum could not
immediately be reached for comment.

Eskom said coal had been diverted from other mines to supply the power
station after workers at Optimum downed tools and coal was not delivered.

Hundreds of members of the National Union of Mineworkers (NUM) marched on
Wednesday at the Optimum mine to express their concerns about the
operation’s viability. [nL8N1QB344]

Northam H1 loss widens on BEE transaction

JOHANNESBURG (Reuters) - Northam Platinum reported a widened half-year loss
on Friday citing costs related to a transaction to increase its black
ownership profile but the mid-tier South African miner still posted an
operating profit.

It made a headline loss of 80 cents per share versus a loss of 64.7 cents
per share a year earlier. Its operating profit fell almost 4 percent to
338.8 million rand.

Northam shares are up 130 percent since December 2015, outpacing a rise of
just over 40 percent for the JSE’s platinum mining index. It has benefited
from cost cutting and high-grade content.

But its financials have been hobbled by preference share dividend payments
related to a black economic empowerment (BEE) transaction which increased
its black ownership levels to 30 percent, exceeding a regulatory requirement
of 26 percent.

Mauritius trade deficit widens 25.2 pct yr/yr in December

PORT LOUIS (Reuters) - Mauritius’ trade deficit widened 25.2 percent to 9.95
billion Mauritius rupees ($302 million) in December from the same period a
year earlier, due to higher imports of mineral fuels and lubricants, the
statistics office said on Friday.

Imports rose 15.5 percent to 17.41 billion rupees, with mineral fuels and
lubricants rising to 3.80 billion rupees from 2.31 billion rupees in
December 2016.

Exports rose 4.6 percent to 7.46 billion rupees, Statistics Mauritius said
in a statement.

The Unites States was the main buyer of goods from Mauritius in December,
accounting for 12.7 percent. China supplied 16 percent of Mauritius’
imports.

($1 = 33.0000 Mauritius rupees)

South Africa's Truworths posts flat first-half retail sales growth

(Reuters) - South African clothes retailer Truworths on Thursday reported
flat retail sales growth in the first-half, which it blamed on a challenging
trading period marred by political uncertainty in its home market.

The company, which also runs the British footwear chain Office, said retail
sales for the 26-week period ended Dec. 31 rose to 10.3 billion rand
($884.69 million), from 10.2 billion rand a year ago.

Retailers in South Africa are facing tough trading conditions as consumer
sentiment hits multi-year lows and high unemployment and inflation erode
disposable incomes in the country’s first recession in eight years.

Diluted headline earnings per share, a widely watched profit measure in
South Africa, strips out certain one-off, non-trading items, fell 3 percent
to 379.3 cents.

($1 = 11.6425 rand)

China seizes control of insurance giant Anbang

Beijing has cracked down on insurance and financial giant Anbang, taking
control of the conglomerate and prosecuting the firm's head.

Wu Xiaohui, who was already detained by authorities last June, is to face
prosecution for "economic crimes".

In an unusual move, Anbang Insurance Group will now be taken over by China's
insurance regulator for one year.

The firm is known for its aggressive international acquisitions, including
New York's Waldorf Astoria hotel.

Chinese authorities have been cracking down on the financial industry to
guard against excessive borrowing and risk.

A warning shot

"Clearly it is designed to be a warning shot to firms engaged in particular
types of financial engineering and leveraged acquisitions (as Anbang was),"
Tom Rafferty of the Economist Intelligence Unit told the BBC.

"The government has made clear reducing financial risk is one of its main
policy priorities."

Anbang, which started out as a car insurance firm with state-owned backers,
is recognised as one of China's richest and most opaque conglomerates.

"The motivation in Anbang's case probably is not just about delivering a
warning shot, however, but probably some also real concerns that the company
was heading for insolvency and the impact this would have on retail
investors that purchased products from the company," Mr Rafferty said.

In addition to selling insurance products, it owns a portfolio of
international properties and global brands.

Politically connected

Mr Wu, who married the grand-daughter of former leader, Deng Xiaoping, was
long thought to be one of the most politically-connected men in China.

Waldorf hotel sold to Chinese firm

Chinese insurance billionaire 'detained'

Kushners end talks with Chinese firm

After his detention last year, the company said in a statement that his
duties as chairman would be managed by other senior executives.

On Friday, the China Insurance Regulatory Commission said he had been
removed from his position altogether.

The government regulator said Anbang's business would continue and that its
external liabilities would not be affected.

It said the company's current operations remained stable but that illegal
operations may "seriously endanger" its solvency abilities.

It said its actions were aimed at keeping the firm operating as usual and to
protect the rights and interests of consumers.

Last year, a company owned by the family of US President Donald Trump's
son-in-law, Jared Kushner, ended talks with Anbang over a major
redevelopment project in New York City.

The potential deal had raised questions about a conflict of interest, given
Mr Kushner's role at the White House.--bbc

Tech giants face new UK tax clampdown

Some of the world's largest technology firms are facing hefty new bills as
the UK government moves to fundamentally change the way they are taxed.

Google and Facebook are braced for significant changes in the tax system
after the Treasury told the BBC that a new tax on revenues was the
"potentially preferred option".

It would open up the firms' huge UK sales numbers to the tax authorities.

At the moment, tax is levied on profits, a much smaller figure.

Google, for example, said it made sales - revenues - of £1bn in the UK in
2016 and a pre-tax profit of £149m.

It paid taxes of £38m - significantly higher than previous years after it
changed the way it accounted for its activity in the UK.

If the government taxed a proportion of those sales its tax bill would be
likely to increase significantly.

It would have a similar impact on a company like Facebook, which is also
highly profitable and also increased the amount of tax it pays in the UK.

All the companies that have faced controversy have also made it clear that
they abide by the present tax rules.

'Fairly taxed'

The Financial Secretary to the Treasury told the BBC that large digital
companies should pay a "fair" amount of tax.

"At the moment [they] are generating very significant value in the UK,
typically through having a digital platform with lots of users interacting
with that platform," Mel Stride told me.

"That is driving a lot of value, so you're looking at social media
platforms, online marketplaces, internet search engines - where at the
moment the tax regime is not taxing those activities fairly.

"We want to move to a situation where we are taxing those activities
fairly."

Graphic on Google/Facebook finances

Presentational white space

Technology companies have long argued that the tax rules are not their
responsibility and that they follow the law.

Eileen Burbidge, of Tech City UK, said: "I don't think the multi-national
tech companies have been any different than any other commercially minded
business, in that they're certainly willing to pay their fair share or their
responsible share of tax."

Mr Stride said that a tax on revenues was the "potentially preferred route
to go", although he did not want to do anything that would harm smaller
start-ups or companies that were still battling to make a profit.

In a consultation document on the issue, published alongside the Budget last
year, the government did raise the prospect of a revenue tax.

That option now appears to have come a significant step closer.

"One important point to make right up front is we're not talking about tax
avoidance, evasion or non-compliance, we're talking about the way the system
works," Mr Stride said.

"And we recognise that in the 21st century, the digital age, there's a type
of model of business where it's actually difficult, using existing tax
rules, to actually apply what most people would feel was a fair level of tax
to those businesses."

Apple pays extra £136m in tax to HMRC

Facebook to overhaul Irish tax scheme

Ebay paid UK tax of £1.6m in 2016

Mr Stride said that digital companies would pay higher levels of tax in a
"number of cases" under the Treasury proposals.

He said the government wanted to work with partners in the European Union
and at the Organisation for Economic Co-operation and Development - which
advises on global tax rules - to come to an international solution.

But if that proved too complicated, the government was prepared to
"unilaterally enter into various changes", he said.

Announcements about changes could come as early as the Spring Statement on
March 13, the government's major annual financial and economic policy
statement, second only to the Budget.

Both France and Germany have said they want to see revenue taxes for digital
firms after controversy over how much tax firms like Google, Facebook,
Amazon and Apple pay.

The European Commission is also expected to come up with its own proposals
next month.

But the OECD warned against "tax wars" breaking out if separate nations
imposed different policies. That could also open up digital firms to being
taxed multiple times across the globe on the same activity.

And could make the UK less attractive for digital firms like Google and
Facebook - which employ thousands of people in Britain - to invest in.

'Tax wars'

The OECD also questioned whether revenue taxes were the best way forward.

"Solving the challenges of the digitalisation of the economy clearly is a
long-term issue, it's going to take years," Pascal Saint-Amans, the director
of tax policy at the OECD, told the BBC.

"So what do you do? Is the stop gap measure - a tax on revenue - a good
measure, probably not. Is it the best you can do given the political
pressure you face in a number of countries, probably yes.

"But this needs to be in a frame to ensure that it's not going to be the UK
consumers who will have to pay for this tax."

He said that China and America - which has recently changed its laws to
oblige global firms to make large tax payments in the US - did not agree
with "short term measures" and that global agreement was important.

"Unilateral measures may trigger some form of tax wars, and tax wars are no
good for anyone," Mr Saint-Amans said. "Thus the importance to have all
countries - starting with the US, the Europeans, the Chinese and the others
- to get together and to be serious in exploring solutions for the
long-term.

"Without these we face the risk that all countries will be willing to
protect the tax base and I think that's a fair reaction that they may have."

He added: "In the long-term, these companies - like all the others - should
pay their taxes where they create value. And we need an agreement among
countries of where is value created.

"Is the value of Google the algorithm, in which case it belongs to the US.
Or is the value created by the consumption of the service, by the user
contribution?"--bbc

Women earn up to 43% less at Barclays

Female employees earn up to 43.5% less at Barclays than men, according to
gender pay gap figures it has submitted to the government.

Only 28 of the 1,154 companies that have reported the figures have a higher
median hourly pay gap than Barclays.

Barclays chief executive Jes Staley said it had "more work to do" so women
could progress in financial services.

However, Barclays said that it paid men and women in the same roles equally.

The 43.5% average gender pay gap reflects its investment bank division,
Barclays International. For its UK retail bank, women earn 14.2% less than
men on average, while the figure is 29.9% for the holding company, Barclays
Services.

The bank has not produced an overall figure for the three divisions.

Nicky Morgan, chair of the Treasury Select Committee, described the pay
disparity at Barclays International as shocking, adding: "Financial firms
should be prepared to explain any gender pay gap that they may have."

Mr Staley said: "Although female representation is growing at Barclays, we
still have high proportions of women in more junior, lower paid roles and
high proportions of men in senior, highly paid roles.

"There has been improvement across financial services but progress has been
slow within the industry, so we support the objectives and intent of the UK
government in introducing gender pay gap reporting to drive equality in both
the workplace and in society more widely."

What is the gender pay gap?

Men still earn more than women at most firms

Of all financial and insurance companies that have submitted their figures,
the median pay gap is 14.8%.

The imbalance at Barclays UK was further highlighted by its pay quartile
figures, with women accounting for 73% of the lowest-paid employees.

Women's bonus pay at Barclays UK was 46.9% lower than that for men on the
median measure.

Barclays is the first big bank to report its gender pay figures and chose to
do so on the same day its annual results were released.

Women earn 38.4% less at Virgin Money, while insurer Aviva has a median pay
gap of 27.6%.

Both firms, along with Barclays, have said they pay men and women in the
same roles equally.

UK companies with 250 or more employees - about 9,000 firms - must calculate
their gender pay gap and publish it on a government website by 4 April, or
30 March for the public sector.

Dominie Moss, founder of The Return Hub, which places women returning from
career breaks in financial services jobs, said: "There's no silver bullet -
for banks and City firms it's about getting more women established in senior
executive roles, so they can in turn embed a culture that's more attuned to
the needs of both women and men. That's going to be about changing
managerial and recruitment practice."--bbc

AirBnB aims to woo wealthier travellers

AirBnB is offering new services aimed at wealthier travellers as it seeks to
compete in the luxury travel market.

The accommodation site will offer a dedicated section for boutique hotels,
bed and breakfasts and more unusual locations such as treehouses and boats.

The firm also announced ‘AirBnB Plus’, a stamp of approval for locations it
has inspected.

The moves follow more stringent regulations being imposed on the company in
a number of countries.

Recent data published by the San Francisco Chronicle suggested AirBnB lost
more than half its listings in the city as stricter regulations took hold.

As the company prepares to float on the stock market, this diversification
is AirBnB's attempt to put more eggs in different baskets. That may reassure
potential investors concerned that AirBnB’s core business - of homeowners
sharing their properties - could be under threat.

These latest announcements continue AirBnB’s gradual shift from a company
that was created to help those who could not afford hotel rooms into a more
traditional travel company.

Brian Chesky, AirBnB chief executive and co-founder, made the announcements
in San Francisco on Thursday.

AirBnB Plus is the firm’s attempt to bring some quality assurance to its
listings, removing some of the uncertainty travellers may have about the
state of a property.

"Airbnb Plus homes have been inspected and verified in person against a 100+
point checklist covering cleanliness, comfort and design,” the company said.

While the site has offered hotel rooms and boutique locations for some time,
they will now be listed in a separate category, making them easier to find.
AirBnB Collections will also group certain types of accommodation for
specific trips, such as a honeymoon.

AirBnB was founded in San Francisco, and in this small-but-symbolic market
the company has seen a dramatic decline in accommodation spaces.

Data gathered by the San Francisco Chronicle suggests short-term rentals
dropped by more than 50% in less than six months. At the same time,
long-term rental site Zillow reported a rise in available apartments in the
Californian city.

The data was collated by Host Compliance, a firm that aids cities in
enforcing regulations on short-term rentals. It included companies other
than AirBnB, such as HomeAway and Flipkey.

But as the biggest player in short-term rentals, AirBnB has been hit hard.
According to the Chronicle, in August 2017 the site had 8,740 listings in
the city. By January, that number had dropped to 4,191.

The site will group properties ideal for certain purposes, such as a
honeymoon

Around the world, AirBnB said it has 4.5 million listings.

The company told the Chronicle they considered January 2018 to be a “hard
reset” and that it was now confident that all of the listed spaces were
fully compliant. Many of the disappearing properties were assumed to rental
tenants renting out spare rooms without the knowledge of the homeowner.

San Francisco is not the company’s biggest market - that is Paris, followed
by London and New York. But what happens here could provide a blueprint for
other cities, particularly those where affordable housing is at a premium.

"Platform accountability works and works very, very well, just as we
expected,” said Dale Carlson from ShareBetter SF, a group calling for
stricter regulations on short-term rentals.

He believed AirBnB’s latest announcement ended “the myth of home sharing”,
adding: "Airbnb is morphing into just another online travel agency. It’ll be
pretty hard to sustain a $31bn valuation in that market.”

Exactly when the company aims to list on the stock market is unclear. Last
month, chief financial officer Laurence Tosi departed, with reports
suggesting internal tensions over how long the IPO process was taking.

AirBnB is now not expected to list until next year at the earliest.--BBC

Saudi Arabia to invest $64bn in entertainment

Saudi Arabia says it will invest $64bn (£46bn) in developing its
entertainment industry over the next decade.

The head of the General Entertainment Authority said 5,000 events were
planned this year alone, including those by Maroon 5 and Cirque du Soleil.

Construction of the country's first opera house has also begun in Riyadh.

The investment is part of a social and economic reform programme, known as
Vision 2030, unveiled two years ago Crown Prince Mohammed bin Salman.

The 32 year old wants to diversify the economy and reduce the kingdom's
reliance on oil, including by increasing household spending on culture and
entertainment.

In December, the government lifted a ban on commercial cinemas.

Is Saudi Arabia on the cusp of change?

Saudis plan to build $500bn mega city

Profile: Prince Mohammed bin Salman

General Entertainment Authority chief Ahmed bin Aqeel al-Khatib said: "In
the past, investors would go outside the kingdom to produce their work, and
then showcase it back in Saudi Arabia.

"Today, change will happen and everything related to entertainment will be
done here."

"God willing, you will see a real change by 2020."

A large entertainment city near Riyadh, roughly the size of Las Vegas, is
already planned as the country aims to boost its tourism sector.

It follows a range of other firsts for the conservative Gulf kingdom -
including allowing women spectators to attend football matches last month
and announcing that women would be permitted to drive from June.

Last year, Prince Mohammed declared his ambition that Saudi Arabia would
once again be "a country of moderate Islam that is open to all religions,
traditions and people".

Seventy per cent of the population were under 30 and they wanted a "life in
which our religion translates to tolerance, to our traditions of kindness",
he said.

Saudi Arabia's royal family and religious establishment adhere to an austere
form of Sunni Islam known as Wahhabism, and Islamic codes of behaviour and
dress are strictly enforced.--bbc

Kylie Jenner 'sooo over' Snapchat - and shares tumble

Reality TV star Kylie Jenner wiped $1.3bn (£1bn) off Snap's stock market
value after tweeting that she no longer used its Snapchat messaging app.

Celebrity Kim Kardashian's half-sister posted: "sooo does anyone else not
open Snapchat anymore? Or is it just me... ugh this is so sad."

Snap's shares sank after Ms Jenner's tweet about Snapchat's re-design to her
24.5 million Twitter followers.

One million people signed a petition demanding Snap roll back the change.

After dropping almost 8%, shares in Snap closed 6% down on Wall Street, and
are now back near the $17 price at which the shares were listed when the
company floated on the stock market in March of last year.

Snapchat is facing intense competition from Facebook's Instagram -
especially for celebrity users - and Ms Jenner's attack comes at a time when
investors are already worried.

Ms Jenner later tweeted a follow-up: "still love you tho snap... my first
love".

Snap has rejected complaints about November's re-design to its messaging
app, with its boss Evan Spiegel saying earlier this month that users just
needed time to get used to it.

Mr Spiegel had something to soften the blow, though, with news on Thursday
that his total pay last year was a staggering $637.8m.

It is thought to be the third-highest annual package ever received by a
company's chief executive.

Analysis: Rory Cellan-Jones, Technology Correspondent

The market just doesn't know what to think of Snap or its Snapchat service.
It is either the future of communication - or a social media fad that will
last not much longer than one of the messages its army of young users sends.

And that makes a share price which has mostly been built on a very
optimistic view of future growth extremely volatile.

Earlier this month it soared by nearly 50% on results that were marginally
better than expected - now they've taken a minor tumble because a reality
star says the new design is "so sad".

Investors will continue to need strong stomachs - especially when they see
how much founder Evan Spiegel is taking home.

Kylie Jenner is not the first celebrity to move markets.

In October 2015, TV host Oprah Winfrey bought a 10% stake in Weight
Watchers, endorsing the firm publically at the same time.

Investors saw their shares rise by 92% over successive weeks.

When the former First Lady, Michelle Obama, turned up to an event wearing
Versace or another designer brand, Wall Street noted the immediate effect on
share prices.

They dubbed it the "Michelle mark-up".

'Swings in sentiment'

Snapchat's shares have been particularly volatile since the company went
public last year, with investor profits sometimes evaporating as fast as
pictures and messages disappear from the site.

The shares plunged by 17% in August, after disappointing results.

But in the first weeks of this month shares bounced back by almost 50% after
Snapchat reported a 72% rise in sales in the last quarter of 2017, with no
fewer than 187 million people using the site every day.

"Part of the problem is Snap isn't profitable at the moment, so there's a
fair amount of hope for the future already baked into the share price,
making it particularly vulnerable to swings in sentiment," said Laith
Khalaf, senior analyst at Hargreaves Lansdown.

"Snap's future rests on building user numbers, so anything which could
undermine that journey is naturally going to unsettle investors."--bbc

RBS reports first profit in 10 years

Royal Bank of Scotland has returned to profit for the first time in a decade
as it continues its recovery.

Chief executive Ross McEwan told the BBC it was "a really symbolic moment."

The bank, which is majority-owned by the taxpayer, made an annual profit of
£752m compared with a £6.95bn loss the year before.

RBS still faces a potentially massive fine from the US Department of Justice
over the sale of financial products linked to risky mortgages.

The bank had expected to settle the case in 2017, but is now hoping it will
reach an agreement this year.

RBS set aside an extra £492m for US litigation, taking the total set aside
for US court action around the sale of those products to £3.2bn.

The issue complicates government plans to start selling down its stake in
RBS.

"We have been constantly hit with the sins of the past with conduct and
litigation issues and I've been heavily restructuring the business to bring
it back to the UK," Mr McEwan said.

'Secret' report into RBS published

RBS boss admits restructuring 'mistake'

RBS to close one in four branches

The bank, which is 71%-owned by the taxpayer, has spent the past decade
restructuring itself.

Mr McEwan said that 10 years ago RBS was the largest bank in the world, with
a balance sheet of £2.2 trillion. This has now sunk to about £750bn.

rbs chart

"We've been restructuring the bank to being a really good UK/Republic of
Ireland business," he told the BBC.

"It's taken time but it's also taken a lot of cost to come out of countries
and businesses that we just didn't want to be in.

"We are now operating in 12 countries as opposed to what was 38, so very
focused on the UK."

For the first time, RBS published the average pay gap between men and women
in the bank, which it said was at 37.2%.

"Our gender pay gap reflects an under-representation of women at senior
levels," the bank said in its annual report. "That is not a satisfactory
position and we know that we still have much to do to narrow the gap."

When will the taxpayer recoup its RBS investment?

Analysis: BBC economics editor Kamal Ahmed

After nine years when accumulated losses totalled £58bn pounds - today a
symbolic profit for RBS.

Does it mean the government can start planning more confidently about
selling the 71% stake it holds on behalf of the taxpayer?

The fact the share price went down this morning by nearly 5% suggests not.

Investors are still nervous about the multi-billion pound fine the bank is
expecting from the US.

At 269p, the RBS share price is still a long way below the 502p a share the
government would need to break even on the billions of pounds it spent
bailing out the bank a decade ago.

It has already sold some of its stake at a loss - and will have to continue
on that path for a long period yet, in the hope that eventually the share
price will rise above that 502p and, overall, a profit can be made.

Ross McEwan told me it would take three to five years before the government
would have a "much smaller" level of ownership.

Selling the taxpayers' stake in RBS has proved a much tougher and longer
process than anyone imagined a decade ago.

Critical report

On Tuesday, after months of wrangling, MPs released a report by regulators
into the mistreatment of small business customers by the bank.

Mr McEwan said the report "did make for really tough reading".

"We did not get it right for customers at the time they needed us when their
businesses were struggling," he said.

"We just didn't look after them well enough".

The bank has now put in place a complaints process overseen by a former high
court judge, Mr McEwan added.-bbc

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

ART

AGM

202 Seke Road, Graniteside

27 Feb 2018 14:00

Ariston

AGM

Centenary Room, Royal Harare Golf Club

27 Feb 2018 16:00

Powerspeed

AGM

Boardroom, Gate 1, Powerspeed Complex, Corner Cripps Road and Kelvin Road
North, Graniteside

01 Mar 2018 11am

Proplastics

final dividend of 0.26c record date

02 Mar 2018

Mash 

AGM

Boardroom, 19th Floor, ZB Life Towers, 77 Jason Moyo Ave

22 Feb 2018 12PM

 <mailto:info at bulls.co.zw> 

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
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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
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