Major International Business Headlines Brief::: 27 February 2018

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Major International Business Headlines Brief::: 27 February 2018

 


 

 


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

 


 

 


*  Incoming S.African finance minister Nene says budget may not stave off
downgrades

*  Nigeria's economy grew 1.92 pct in Q4 2017: stats office

*  Shoprite Holdings ramps up Africa expansion with Kenya entry

*  Zambia urges mines to start moving 30 percent of cargo by rail

*  South Africa's rand falls on profit-taking after cabinet shuffle bounce

*  Mozambique's cuts key lending rate by 150 bps to 19 pct

*  Namibia cannot afford more bailouts for state firms - minister

*  Social media firms 'failing' to tackle cyber-bullying

*  Brexit prompts Credit Suisse to move 250 London jobs

*  Weinstein Company to file for bankruptcy

*  Sony phone adds rumble to games and films

*  Aston Martin roars back into the black with £87m profit

*  China Anbang crackdown: Who might be next?

*  Carbon emissions up as diesel sales dive

*  Rupert Murdoch's Sky bid challenged by Comcast

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Incoming S.African finance minister Nene says budget may not stave off
downgrades

JOHANNESBURG (Reuters) - South Africa’s incoming Finance Minister Nhlanhla
Nene said on Tuesday that the budget tabled last week by outgoing minister
Malusi Gigaba, which featured the first VAT hike in over two decades, might
not prevent more credit ratings downgrades.

 

Nene was asked during a radio interview whether the budget would stave off
downgrades that could make it more costly for South Africa to borrow.

 

“I wouldn’t say that yet,” Nene told Talk Radio 702.

 

Nene’s return to the finance ministry comes two years after his sacking from
the same role triggered a party revolt that eventually ousted former
president Jacob Zuma, who was replaced two weeks ago by Cyril Ramaphosa.

 

Ramaphosa late on Monday announced Nene’s return in a reshuffle that also
saw new faces and the removal of some ministers allied to Zuma, who was
ordered by his own African National Congress party to step down.

 

Nene, a soft-spoken technocrat who is respected by the markets, told 702
that he had learned of his reappointment on Monday and that his reaction was
“mixed.”

 

“What superseded my reaction was when public service calls, all other things
are no longer a priority,” he said.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Nigeria's economy grew 1.92 pct in Q4 2017: stats office

LAGOS (Reuters) - Nigeria’s gross domestic product grew 1.92 percent in the
last quarter of 2017 compared with a 1.73 percent contraction in the same
period the previous year, the National Bureau of Statistics said on Tuesday.

 

Nigeria’s economy returned to growth in the second quarter of 2017 but the
recovery has been fragile since it is largely due to higher oil prices. The
International Monetary Fund (IMF) said in December that the economy remains
vulnerable.

 

 

 

Shoprite Holdings ramps up Africa expansion with Kenya entry

JOHANNESBURG (Reuters) - South African Shoprite Holdings will move into
Kenya, where weakened competitor positions have opened an opportunity for
Africa’s biggest grocer to expand its presence in East Africa, its chief
executive Pieter Engelbrecht said on Tuesday.

 

South African retailers have struggled to lift earnings at home as high
household debts squeeze consumer income, although Shoprite has fared better
than others with its focus on budget-conscious consumers, including more
than 10 million South Africans on welfare grants.

 

To diversify its earnings base, it has expanded deeper into the rest of
Africa to take advantage of oil-rich Nigeria and Angola and now Kenya.

 

“We have not changed our focus to say we’re not looking at the continent
anymore. We have grabbed that opportunity, we’re going to Kenya,”
Engelbrecht said at the presentation of the company’s half-year results.

 

Shares in Shoprite were up 3.88 percent to 267.99 rand by 0737 GMT.

 

Shoprite, which reported a 14.2 percent increase in half-year headline
earnings per share, expects to be in Kenya before the end of 2018.

 

“Five years ago, Kenya wasn’t considered by us because they had three very
big retailers there,” said Engelbrecht.

 

“Starting last year ... the retailers in Kenya were in total disarray and we
were able to secure seven sites and leases.”

 

 

 

 

Zambia urges mines to start moving 30 percent of cargo by rail

(Reuters) - Mining companies in Zambia, Africa’s No. 2 copper producer,
should immediately start transporting 30 percent of their cargo by rail
despite their concerns about inadequate capacity, the government said on
Tuesday.

 

Zambia in January introduced a new law compelling mining companies and other
bulk cargo handlers to transport at least 30 percent of their freight by
rail as it looks to bolster the sector.

 

However, the Zambia Chamber of Mines said on Monday that Zambia was not
ready to handle that amount of cargo and the potential impact on the mining
industry had not been properly considered.

 

Zambia’s rail lines have a market share of only about 5 percent and the
remainder is handled by road transport, government data show.

 

Transport Minister Brian Mushimba said in a statement Zambia’s two
state-owned railway companies were already moving cargo such as copper as
third parties through logistics firms.

 

The government consulted both the Chamber of Mines and individual mining
companies before creating the new law, Mushimba said.

 

“We are proceeding with the implementation plan,” Mushimba said.

 

South African state-run logistics firm Transnet will lease locomotives and
wagons to Zambia Railways to boost its capacity to handle bulk cargo.

 

 

 

South Africa's rand falls on profit-taking after cabinet shuffle bounce

JOHANNESBURG (Reuters) - South Africa’s rand opened weaker on Tuesday, with
investors pocketing profits after the currency briefly rallied to a
three-year high overnight as new president Cyril Ramaphosa changed his
finance minister in a broad cabinet reshuffle.

 

At 0630 GMT the rand was 0.19 percent softer at 11.5600 per dollar, backing
off the 11.5100 level touched late on Monday, its firmest since February
2015.

 

The rand attracted immediate buying interest as Ramaphosa said he had
appointed Nhlanhla Nene as finance minister, two years after Nene’s sacking
from the same role triggered the revolt within the ruling party that
eventually ousted Jacob Zuma.

 

“Markets largely anticipated the reshuffle and a big portion of strength has
been priced in,” said an analyst at Peregrine Treasury Solutions, Bianca
Botes.

 

Technical indicators showed the unit was straying into overbought territory,
and that the effect of local politics would give way to international
factors.

 

“More and more I believe the global dollar story will take a hold and the
rand will be susceptible to those events in the future, (and) the
correlation between S.A. and the rest of EM will start to increase again,”
said chief trader at Standard Bank, Warrick Butler.* Bonds were weaker, with
the yield on the benchmark paper due in 2026 up 2.5 basis points at 8.035
percent.

 

Stocks opened firmer at 0700 GMT, with the JSE securities exchange’s Top-40
index up 0.36 percent at 52,049 points.

 

 

 

Mozambique's cuts key lending rate by 150 bps to 19 pct

MAPUTO (Reuters) - Mozambique’s central bank reduced its benchmark lending
rate by 150 basis points to 19 percent on Monday.

 

The central also said its monetary policy committee had also decided to
reduce the monetary policy interest rate, or MIMO, by the same margin to 18
percent.

 

 

 

Namibia cannot afford more bailouts for state firms - minister

WINDHOEK (Reuters) - Namibia can no longer afford to bail out loss-making
state companies, public enterprises minister said on Monday.

 

The southern African country allocated more than 4 billion Namibian dollars
($344 million) to some of the more than 300 state-owned companies. Some of
those firms racked up combined losses of about 150 million Namibian dollars
a year.

 

Namibia’s economy plunged deeper into recession in the third quarter of 2017
as declines in construction and trade eclipsed growth in manufacturing and
mining.

 

“Unfortunately our current economic status cannot allow for things to remain
the same,” Public Enterprises Minister Leon Jooste said.

 

“All of us need to realise it is no longer business as usual and days of
commercial (public enterprises) receiving government subsidies are
numbered,” he said.

 

Jooste said the government needed to intervene to increase accountability in
state-owned companies.

 

“Although we believe in paying market-related remuneration packages, the
total wage bill which stands at about 6.1 billion Namibian dollars is not
sustainable at the current level of performance,” he said.

 

($1 = 11.6130 Namibian dollars)

 

 

 

 

Social media firms 'failing' to tackle cyber-bullying

Social networks' failure to tackle cyber-bullying is risking the mental
health of young people, a Children's Society survey has found.

 

Almost half of 1,089 11 to 25-year-olds questioned for the Safety Net report
had experienced threatening or nasty social media messages, emails or texts.

 

Two-thirds said they would not tell their parents if they experienced
something upsetting online.

 

However 83% want social media companies to do more to tackle the problem.

 

According to the Safety Net report, most of the respondents felt that there
was a lack of consequences for people who engage in bullying behaviour
online, in contrast to the offline world.

 

"Social media companies should take complaints more seriously. If someone
reports something, they shouldn't take days to review it, they should
literally just remove it straight away," said a 15-year-old girl, who
responded to the online survey.

 

"The reaction from adults is just delete your account to stop the bullying,
but that's taking something away from that young person's life for something
that's not their fault."

 

The inquiry is calling on social media companies and the government to act
to tackle cyber-bullying.

 

The inquiry is recommending that social media companies:

 

Respond to reports of bullying within 24 hours

Give young users clearer guidelines on how they should behave online

Take tougher action on those who break the rules

It also advises the government to:

 

*         Launch online safety lessons in schools

*         Require social networks to report cyber-bullying data

*         How cyber-bullying works

*         The inquiry was set up by Tory MP Alex Chalk, together with two
children's charities The Children's Society and YoungMinds.

 

The inquiry found that cyber-bullying takes many forms, including:

 

*         persistent messaging

*         sharing embarrassing photos or information online

*         mass "unfriending" the accounts of the target being bullied

*         The 15-year-old female survey respondent said that young people
today "kind of expect" to experience cyber-bullying.

 

Children and young people feel that social media companies should do much
more to tackle bullying online

"Nasty comments on the selfie, Facebook posts and Twitter posts, people
screengrabbing your Snapchat story to laugh about it
 I feel like it's
something people don't take seriously," she said.

 

"But leaving just one nasty comment could really hurt someone."

 

The inquiry also found that social media is extremely addictive, with one in
10 young people surveyed admitting that they log on to social networks after
midnight every night.

 

One respondent likened social networks to being "almost like a drug", and
young people gave evidence to the inquiry that they felt judged and
inadequate if they didn't have enough "likes" on posts or enough followers
on their accounts.

 

The heaviest users of social media amongst the respondents were mostly
likely to have low wellbeing and symptoms of anxiety and depression.

 

And those who had been bullied online told the inquiry that they would
frequently check their account newsfeeds to see what else had been shared or
said about them on the platforms.

 

"Cyber-bullying can devastate young lives, but to date the response from
social media companies has been tokenistic and inadequate. It has failed to
grip the true scale of the problem," said Mr Chalk.

 

"For too long they have been marking their own homework and it's time they
become far more transparent, robust and accountable."--bbc

 

 

Brexit prompts Credit Suisse to move 250 London jobs

Credit Suisse plans to move about 250 banker jobs out of London under its
first phase of Brexit planning, according to reports.

 

Employees in areas such as trading and mergers and acquisitions were likely
to be relocated to Frankfurt or Madrid, Bloomberg reported.

 

The Swiss bank employs about 5,500 staff in London.

 

A spokesman said Credit Suisse "continued to investigate its options".

 

According to Bloomberg, the bank had considered relocating staff to Paris
but backtracked after holding talks with local regulators and government
officials.

 

Credit Suisse is one of the biggest investment banks in London.

 

It is one of the few European banks yet to announce contingency plans for
Britain's departure from the European Union.

 

Deutsche Bank has said it will move an unspecified number of jobs to
Frankfurt, as well Milan and Paris.

 

HSBC and UBS have also said they would relocate roles, while last month
Goldman Sachs said its contingency planning was reaching the point of no
return.

 

Earlier this month, Credit Suisse chairman Urs Rohner suggested banks would
have to trigger their contingency plans within two or three months due to a
lack of clarity over Brexit negotiations.

 

A spokesman for the bank said: "Credit Suisse continues to investigate its
options as to the best way to maintain access to EU clients and markets by
leveraging existing infrastructure in the event of a hard Brexit."

 

Last year, the Bank of England said that up to 75,000 jobs could be lost in
financial services following Britain's departure from the European Union.

 

Even so, London would remain Europe's biggest financial centre, with
financial services in both the capital and other parts of the UK employing
more than one million people.--bbc

 

 

 

Weinstein Company to file for bankruptcy

The New York studio co-founded by disgraced film producer Harvey Weinstein
will file for bankruptcy after talks to sell its assets to an investor group
collapsed.

 

Talks ended two weeks ago when the New York attorney general's office filed
a lawsuit against the Weinstein Company.

 

Directors said an "orderly bankruptcy" was the only viable option possible.

 

Mr Weinstein faces dozens of allegations of sexual abuse, including rape,
but denies non-consensual sex.

 

"The Weinstein Company has been engaged in an active sale process in the
hopes of preserving assets and jobs," the board said in a statement.

 

"Today, those discussions concluded without a signed agreement."

 

The statement said bankruptcy was the "only viable option to maximise the
company's remaining value".

 

Weinstein timeline: How the scandal unfolded

Harvey Weinstein's accusers

Weinstein 'derailed my career'

The civil rights lawsuit against the company alleges that Mr Weinstein
sexually harassed and abused women employed by the studio for years, as well
as making verbal threats to kill staff members.

 

It accuses senior executives at the company, including Mr Weinstein's
brother Robert, of failing to prevent the mistreatment of staff despite
being presented with evidence.

 

New York Attorney-General Eric Schneiderman is seeking an unspecified sum to
cover damages, plus penalties, for victims of alleged abuse.

 

A lawyer for Mr Weinstein has said a "fair investigation" will show that
many of the allegations were without merit, while the company's directors
has said many of the allegations relating to the board were "inaccurate".

 

*         The Weinstein Company: Biggest US box-office gross successes

*         The Weinstein Company is based in New York

*         Django Unchained (2012) ($162.8m)

*         The King's Speech (2010) ($138.8m)

*         Silver Linings Playbook (2012) ($132.1m)

*         Inglourious Basterds (2009) ($120.5m)

*         The Butler (2013) ($116.6m)

The allegations against Mr Weinstein first surfaced in October last year,
when the New York Times published a story detailing decades of allegations
of sexual harassment against Mr Weinstein.

 

Since then, more than 50 women, including some of the biggest names in
Hollywood, have accused the film producer of sexual assault, harassment,
abuse and rape.

 

In the wake of the allegations, Mr Weinstein was sacked by the board of his
company.

 

He is under investigation by UK and US police, but no criminal charges have
yet been brought.

 

Mr Weinstein, who was once among the most powerful men in Hollywood, has
admitted that his behaviour has "caused a lot of pain" but has described
many of the allegations against him as "patently false".--bbc

 

 

Sony phone adds rumble to games and films

Sony's latest top-end smartphone vibrates in time with movie and TV action
scenes and video games.

 

The Xperia XZ2's rumble tech adapts a feature originally developed for the
firm's PlayStation controllers.

 

It also records "super-slow-mo" videos at a higher resolution than Samsung's
Galaxy S9.

 

Sony has, however, pioneered other phone innovations in the past - including
a 4K screen and waterproofing - only to see its sales still struggle.

 

In 2017, it was only ranked the 15th best-selling smartphone manufacturer,
according to research firm IDC, with a 0.94% share of the market.

 

"It is very frustrating when we bring something out to the market first, and
maybe the competition comes a year later and does kind of the same thing and
gets more buzz around it," acknowledged Sony's senior manager Adam Marsh.

 

"We will definitely be improving how we go to market with the product this
time to really ensure the consumers understand the experiences that we can
offer."

 

But analysts question both the appeal of the new features and also whether
the firm is willing to spend enough to market them.

 

"The rumble tech is a bit of a gimmick," commented Ben Stanton from the
consultancy Canalys.

 

"I've tried it. It does make gaming more immersive, but I don't think it
works very well in a video context.

 

"And I don't think it adds the value that consumers are looking for in a
smartphone these days"

 

CCS Insight's Ben Wood added that he thought the phone's new industrial
design was a major improvement on the past, but that he also had doubts
about the new flagship's prospects.

 

"Success often comes down to marketing dollars and brand," he said.

 

"Taking on Apple and Samsung requires eye-watering investment that Sony is
always going to struggle with."

 

Higher-def slow-mo

The XZ2's other new features centre on its camera.

 

Last year's model was the first phone to be able to stretch out 0.2 seconds'
worth of action to create six seconds of footage, in 720p resolution.

 

 

Samsung made much fanfare of adding a similar feature to its new phones on
Sunday.

 

But Sony has now trumped that by delivering its 960 frames-per-second
footage in 1080p - twice the resolution that its South Korean competitor
offers.

 

It said it had achieved this by using a customised version of Qualcomm's
Snapdragon 845 chip that features its own image signal processor technology.

 

The potential problem for the firm, however, is that early reports indicate
Samsung's version is much easier to use.

 

"Sony hasn't done much to tweak the user interface since last year's model,
where it was pretty poorly executed and very difficult to capture the key
moment," said Mr Stanton.

 

"And Samsung has done some brilliant work with AI and image recognition to
capture the fast moments as they happen - it's actually learned from Sony's
mistakes to launch something better, even though technically it's not to as
high a standard."

 

Another new camera technology in the XZ2 is the ability to record 4K videos
in both a high dynamic range format - meaning images should appear more
vibrant and realistic when played back on a compatible screen - as well as
in 10-bit colour.

 

Sony is also releasing a "compact" version of the XZ2 phone with a smaller
display but otherwise similar specifications

The latter feat means that users will be able to tweak the colour of the
resulting footage with less risk of causing banding and other visual
artifacts.

 

While this is likely to only appeal to a relatively small number of
film-makers, it is significant as the firm has yet to offer the facility to
many of its high-end cameras.

 

'Not for sale'

Sony's mobile division was the only part of the company to report a loss in
its last financial quarter and there has been speculation that the business
might be shut down or sold off.

 

The firm is about to change its chief executive, and the new boss -
Kenichiro Yoshida - was previously responsible for selling off its Vaio PC
business and cutting the budget of the mobile division.

 

Sony has, however, denied that it is actively considering spinning off or
shutting down the unit.

 

"As you can see from our announcements and presence at Mobile World
Congress, we are fully committed to the mobile sector," marketing chief
Hideyuki Furumi told the BBC.

 

"As long as Sony remains committed to the electronics business, mobile will
be of strategic significance due to its R&D prospects for delivering
numerous cutting-edge technologies such as 5G networks, the
internet-of-things and 3D-sensing."--bbc

 

 

 

Aston Martin roars back into the black with £87m profit

Aston Martin, James Bond's car maker of choice, sold just over 5,000
vehicles last year, allowing the firm to post its first annual profit since
2010.

 

The British sports car producer made a pre-tax profit of £87m last year,
compared with a £163m loss in 2016.

 

Its flagship DB11 coupe proved popular with buyers, helping drive its sales
tally to a nine-year high, Aston Martin said.

 

It also confirmed it is considering a stock market listing.

 

Revenue jumped 48% to £876m.

 

Boss Andy Palmer, who took over in 2014, has pursued a turnaround plan
intended to broaden Aston Martin's model range, quadruple volumes and make
its first SUV at a new plant in Wales.

 

He said the new models would result in output rising "significantly" above
5,000 cars in 2018.

 

"I would expect the factory to be max-ing out in terms of its production
capability towards the second half of the year."

 

It is understood that Aston Martin's main shareholders, Italian private
equity fund Investindustrial and a group of Kuwaiti investors, have hired
the investment bank Lazard to advise it.

 

The car maker could opt to float in the second half of the year, or could
look for a buyer.

 

"We've now been asked to consider a range of strategic options for the
future of the group - and one of those options of course is an IPO (initial
public offering)," Mr Palmer said.

 

He also said Aston Martin was applying to have the new Vantage model
licensed by a regulator in the European Union rather than the UK due to
uncertainty about vehicle rules after Brexit.

 

The DB11 was unveiled at the Geneva motor show in 2016 and was the first
redesign of its DB range in 13 years.

 

Mr Palmer said at the time it was the most important car in Aston Martin's
history.

 

The car seen in the most recent Bond film, Spectre, was a DB10. Just 10 were
made specifically for the shoot and just two survived filming.--bbc

 

 

 

China Anbang crackdown: Who might be next?

Airlines, football clubs, five-star hotels and film studios.

 

China's biggest conglomerates have been snapping up businesses around the
world, including some in fairly sexy sectors.

 

Despite growing so big and borrowing so much, they were seen as untouchable
because of their political connections.

 

That was until the middle of last year when, after seemingly unrestrained
growth, Beijing suddenly turned up the heat on some of those giants.

 

And then last week, some real action. Beijing cracked down on one of those
firms - taking control of insurance and financial giant Anbang, and
prosecuting the firm's head.

 

This, analysts suggest, could indicate more action to come.

 

The action against Anbang was called a "warning shot" by the Economist
Intelligence Unit.

 

But it is just one of the businesses which became known as "grey rhinos" -
large, visible problems in an economy which are often ignored, until they
start moving fast and trampling everything in their wake.

 

And next in Beijing's crosshairs, analysts predict, is likely to be HNA,
which has been described as the biggest company you've probably never heard
of.

 

Investing an estimated $40bn (£28.7bn) in the past three years, it differs
from Anbang having primarily bought into "real businesses" rather than being
built mainly around complex financial structures.

 

It owns China's Hainan Airlines, airport services firm Swissport, airline
caterer Gate Gourmet, holds a major stake in Deutsche Bank, has a 25% share
in the Hilton hotel group, and owns Carlson Hotels, which runs the Radisson
chain.

 

While there's no suggestion it's in financial difficulties, expect Beijing
to lean on HNA to get rid of "most if not all of its financial sector
holdings", says Michael Hirson of analysts Eurasia Group.

 

Earlier this month, HNA said it had reduced its stake in Deutsche Bank from
9.9% to 9.2%.

 

While most of Anbang's investors were individuals putting cash into things
such as insurance policies, HNA's backers are mainly institutions.

 

One the one hand, this would mean its collapse would be far less politically
sensitive. The common man or woman on the street rarely sheds tears when
financial giants get their fingers burned.

 

But Eurasia Group says we should not expect a too punitive approach from the
government.

 

"Beijing is reluctant to impose major losses on bondholders, which would
make it more expensive for many other Chinese corporates to obtain external
financing," Mr Hirson said.

 

Significant bankruptcies would also carry political risks.

 

HNA hasn't commented. But speaking last year to the BBC, chief executive
Adam Tan was sanguine about plans by Beijing to tighten restrictions on
Chinese businesses spending money abroad.

 

He predicted HNA would still get support from Chinese banks, and could count
on international banks as well because of its large presence outside of
China.

 

It seems unlikely he will feel so secure today.

 

Of all the Chinese firms facing a crackdown, Dalian Wanda has the highest
profile overseas, partly because of the sort of investments it made.

 

Run by Wang Jianlin, among the country's richest men, it grew into one of
the country's most prominent property developers.

 

And it invested overseas too, most noticeably in Hollywood - controlling the
AMC cinema chain as well as Legendary Entertainment, co-producer of hit
films such as Godzilla and The Dark Knight Rises.

 

But Mr Wang, once considered a Beijing favourite, fell foul of the
establishment, with lenders told to pull out their backing.

 

And after the warnings came he was quick to offload businesses, including
theme parks and hotels in one of China's biggest property deals as it
focused on its core shopping mall and cinema businesses. A subsequent
rejigging of the deal just added to the picture of chaos.

 

Earlier it had pulled out of a $1bn bid for Dick Clark Productions - the
owner of the Golden Globe TV and film awards - with China's clampdown on
overseas investments blamed.

 

Michael Hirson of Eurasia Group described the asset selling as "aggressive
moves" to "de-risk".

 

They were, he added, "a painful decision for Wang but one that now looks
very astute".

 

The other big player put on the watch list in mid-2017 was Fosun.

 

It has investments in the English football club Wolverhampton Wanderers,
leisure group Club Med, travel firm Thomas Cook and entertainments business
Cirque de Soleil.

 

And unlike the others, is still buying abroad.

 

Just last week, it said it had completed a deal to become the majority
shareholder in Lanvin, France's oldest surviving couture label. Though by
its standards, the investment of about $120m is fairly small.

 

Both Wanda and Fosun "appear to be on more solid political ground",
according to Mr Hirson.

 

What does this mean for Chinese overseas investment?

The clampdown is very much aimed at the large conglomerates buying into a
huge range of sectors.

 

Most other firms are able to keep investing.

 

But there has been a fall from the peak years of 2015 and 2016.

 

The number of Chinese deals in the US and Europe fell by almost 25% in 2017
from the previous year, Dealogic said.

 

And the rhetoric against Chinese investment in the US from the Trump
administration - as seen in the collapse of some major deals - means this
trend is likely to continue.

 

Just this week, Germany said it would be watching closely after Geely
snapped up nearly 10% of Mercedes-Benz owner Daimler.

 

Why was Anbang targeted?

To recap from last week, Anbang firm was known for its aggressive
international acquisitions, including New York's Waldorf Astoria hotel.

 

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

 

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

 

Analysts at Eurasia Group described it as "both a takedown and a bailout".

 

"Beijing's approach reveals President Xi Jinping's approach to cracking down
on conglomerates - punish wrong-doing by executives while sending a
reassuring message to the markets," said Eurasia Group's Michael Hirson.

 

China could have nationalised Anbang instead (as, for example, happened
during the UK banking crisis in 2008 with Royal Bank of Scotland).

 

Or it might have forced its sale to another company (continuing the UK
analogy, look at how HBOS was sold to Lloyds Banking Group).

 

Instead it put it under the stewardship of China's insurance regulator for
one year.

 

This, notes Mr Hirson was a "relatively transparent and investor-friendly"
approach, allowing the regulators to sell-off Anbang assets and bring in
funds while keeping it out of state ownership.--bbc

 

 

 

Carbon emissions up as diesel sales dive

Drivers shunning diesel cars is partly to blame for a rise in carbon dioxide
emissions from new vehicles, the car industry trade body.

 

The 0.8% increase, to 121 grams per kilometre, is the first rise since the
SMMT began reporting levels in 2000.

 

Diesels typically emit up to 20% less CO2 than petrol cars and are more
fuel-efficient.

 

As well as slowing diesel sales, the SMMT said the popularity of SUVs
contributed to the rise.

 

SUVs produce about a quarter more CO2 than the smallest vehicles.

 

Despite the small increase in carbon emissions last year, new cars now
produce a third less CO2 in total than they did in 2000.

 

New vehicles are much most efficient than older cars, but the 5.7% fall in
new registrations to 2.54 million last year shows that drivers are keeping
their cars for longer.

 

The SMMT is calling on the government to offer a consistent approach to
sales incentives and tax to encourage drivers to buy in the cleanest cars -
and spend more on electric vehicle charging points.

 

"Meeting the pan-European 2020/2021 new car and van CO2 targets looks ever
more challenging, given recent market developments and government policy
announcements," the industry body said in its report.

 

Electric cars account for just 0.5% of new car sales in the UK.

 

The car industry has laid the blame firmly at the feet of government for the
impact of anti-diesel rhetoric on new car sales.

 

The SMMT says we are not buying diesel cars partly because the government
wants to tax diesel. Consumers are therefore uncertain about what the true
financial and environmental costs of owning a diesel might be.

 

Factor in the additional uncertainty around what a diesel car will be worth
on the secondhand market and it is no surprise new diesel sales fell by 17%
in 2017.

 

As a consequence, the UK is in danger of missing its climate change goals on
carbon dioxide.

 

A big jump in sales of 4x4s is also part of the problem, as they are heavier
and consume more fuel. Although smaller cars still dominate British roads,
SUVs now account for about one in five new cars sold.

 

New SUVs have average carbon emissions of 141.3g/km, while a small car emits
115.8g/km on average. The EU target is for an average of 95g/km across all
new cars sold.

 

Getting drivers to downsize from supersized vehicles may prove trickier for
the industry than getting governments to back cleaner diesel or install more
electric charging points.--bbc

 

 

Rupert Murdoch's Sky bid challenged by Comcast

US cable TV giant Comcast has made a £22.1bn bid for Sky, challenging an
existing offer from 21st Century Fox.

 

Rupert Murdoch’s 21st Century Fox had already agreed an £18.5bn deal to buy
the 61% of Sky it does not already own.

 

Comcast is the biggest US cable TV firm. It also owns the broadcast TV
network NBC and Universal Pictures.

 

Comcast chief executive Brian Roberts called Sky "an outstanding company"
and said he was "confident" the offer would be cleared by regulators.

 

Mr Roberts added that the UK "is and will remain a great place to do
business" and that Comcast wanted to "use Sky as a platform for our growth
in Europe".

 

Shares jump

Comcast said Sky News was "an invaluable part of the UK news landscape", and
it intended to "maintain Sky News' existing brand and culture".

 

Mr Roberts added: "We would like to own the whole of Sky and we will be
looking to acquire over 50% of the Sky shares".

 

Comcast said its bid of £12.50 a share was 16% higher than the 21st Century
Fox offer.

 

Sky's shares jumped more than 18% to above £13 in early trading on the
London Stock Exchange.

 

Fox's Sky bid has not been viewed favourably by the UK's competition
authority, which in January provisionally found that it would not be in the
public interest.

 

The Competition and Markets Authority is concerned that if the deal went
through, the Murdoch Family Trust would have too much influence over public
opinion and the political agenda.

 

Last week, 21st Century Fox said it would keep Sky News running for at least
10 years, with a fully independent board for the channel, to try to make the
proposed deal more attractive to regulators.

 

The picture was made more complicated in December of last year when Walt
Disney agreed to buy the bulk of 21st Century Fox's business, including its
39% Sky stake.

 

If that acquisition goes through, it could lessen the Murdoch family's UK
influence.

 

Mr Roberts said that Comcast was prepared to co-own Sky with either Fox or
Disney, as long as Comcast held a majority stake.

 

Earlier this month, Sky won the lion's share of Premier League TV rights for
the football seasons between 2019 and 2022.

 

Comcast chief financial officer Michael Cavanagh said the Premier League
auction was a factor, but not the driving force behind the offer.

 

Lower risk

Analysts from Liberum said there was a "very good chance" that Comcast's bid
would succeed.

 

"We expect this deal to go through as we do not think Fox (or Disney, who
are acquiring the Sky assets as part of their purchase of various Fox
assets) will want to get into a bidding war, especially given the
complications surrounding Sky News."

 

The analysts said the increased offer would be attractive to many Sky
shareholders, not only because of higher bid, but also "it would come with
much lower regulatory risk".

 

The UK government may also be "looking for an optimal way to defuse the
political risks from the Fox bid," they said.

 

"Moreover, there is the obvious question of whether Fox would want to
counterbid. After all, [the fact] it is selling its Sky stake to Disney
suggests already it wants to exit at the right price," the analysts
added.--bbc

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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

 


Simbisa Brands Limited

EGM

SAZ Building Northend Close, Northridge Park, Borrowdale

09 Mar 2018 8:15am

 


CFI

AGM

Farm & City Boardroom, 1st Floor, Farm & City Complex, 1 Wayne Street

 

12 Mar 2018 11am

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <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
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
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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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