Major International Business Headlines Brief::: 22 January 2018

[Bulls n Bears]

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 22 January 2018

 


 

 


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

 


 

 


*  Steinhoff to place shares in PSG Group worth around $620 million

*  Nigeria's central bank says won't hold interest rate meeting, rate to be
held at 14 pct

*  Lonmin reports 65 percent fall in 2017 profit on higher costs

*  Nigeria passes major oil reform bill after 17 year struggle

*  South African rand hits fresh 2-1/2 year high, government bonds firm

*  Egypt targets 8-10 flotations of state firms over 18 months -finance
minister

*  Egypt renews contract for 12 mln barrels of Iraqi crude - EGPC official

*  Libya's NOC announces reopening of 50,000 bpd As-Sarah fields - statement

*  Saudi energy minister: oil producers have consensus on cooperating after
2018

*  Nigeria unlikely to hold interest rate meeting next week -c.bank sources

*  US shutdown: Senators trade blame ahead of Monday vote

*  'World's richest 1% get 82% of the wealth', says Oxfam

*  Amazon opens a supermarket with no checkouts

*  UK growth upgrade could 'dwarf' Brexit hit

*  CBI calls for UK to remain in a customs union with EU

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Steinhoff to place shares in PSG Group worth around $620 million

FRANKFURT (Reuters) - South African retailer Steinhoff plans to sell about
7.5 billion rand ($620 million) of shares in investment firm PSG Group as it
scrambles to plug a liquidity gap after it disclosed “accounting
irregularities”.

 

The group, which owns more than 40 brands like Conforama, Mattress Firm and
Poundland, said on Monday it would place around 29.5 million shares in PSG
with institutional investors in an accelerated bookbuild. Steinhoff owns 16
percent of PSG, which has a total market value of around 60 billion rand.

 

Steinhoff last month shocked investors with the disclosure of what it said
were irregularities in its accounts which helped to wipe about $15 billion,
or 85 percent, off its market value.

 

However, it said in a statement on Monday the placement would only go ahead
if it achieved acceptable pricing. “Steinhoff will not dispose of the
Placing Shares at all costs, as the Placing is being undertaken in order to
be pro-active and prudent,” it said.

 

Steinhoff’s top two executives have resigned, as well as its chairman, and
the group is currently being run by an acting chief executive while its
former finance chief works full-time on securing financing.

 

Sources familiar with the matter had told Reuters last month that Steinhoff
was considering selling stakes worth a combined $1.4 billion in PSG Group
and KAP Industrial to raise much-needed funds.

 

Steinhoff owns 39 percent of diversified industrial group KAP, which is
worth around 22.4 billion rand at current market prices.

 

PSG Capital Proprietary Limited and The Standard Bank of South Africa
Limited are acting as joint bookrunners for the placement in PSG shares.

 

($1 = 12.0875 rand)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Nigeria's central bank says won't hold interest rate meeting, rate to be
held at 14 pct

ABUJA (Reuters) - Nigeria’s central bank said on Monday a key interest rate
setting meeting intended for January 22-23 will not be held due to an
inability to form a quorum, adding that the benchmark rate will be
maintained at 14 percent.

 

The decision comes because there are not enough members of the Central Bank
of Nigeria’s (CBN‘s) Monetary Policy Committee (MPC) to form a quorum, the
lender said in a statement.

 

“Under these circumstances, and in the absence of a meeting of the MPC, the
CBN shall continue to maintain key monetary policy variables as decided by
the last MPC meeting,” the central bank said.

 

On Friday, Reuters reported that the interest rate meeting was unlikely to
be held because several new members of the MPC have yet to be approved by
lawmakers, according to two central bank sources.

 

At least five of the MPC’s 12 members are due to be replaced after retiring
last year.

 

At the heart of the matter is a stand-off between the presidency and
legislature over the latter’s powers to confirm - or deny - executive
nominees to key posts within the government.

 

After President Muhammadu Buhari appointed a top civil servant whose
nomination Nigeria’s Senate had blocked, the upper parliamentary chamber is
now refusing to approve other presidential nominees, including those for the
MPC.

 

On Friday, a presidency official said he did not know when the stand-off
would be resolved but it was being addressed by Buhari’s office.

 

 

 

Lonmin reports 65 percent fall in 2017 profit on higher costs

LONDON (Reuters) - Platinum miner Lonmin reported a 65 percent drop in 2017
profit on Monday as the company took a $1.1 billion impairment charge after
a business review.

 

Bruised by higher costs and subdued commodity prices, the miner, which is
being bought by Sibanye-Stillwater, said earnings before interest, taxes,
depreciation and amortisation (EBITDA) fell to $40 million for the year to
Sept. 30 from $115 million a year earlier.

 

Lonmin delayed its results last year pending the outcome of a business
review.

 

“Persistent adverse macroeconomic conditions and inflationary cost pressures
continue to affect the entire mining industry in South Africa,” the miner
said in a statement.

 

Lonmin has been worst hit among the major platinum miners by operating
conditions and community and labour unrest.

 

The company reiterated its spending and production targets for 2018 but said
it planned to cut a minimum of 500 million rand ($41 million) from its
annual overhead costs by Sept. 30.

 

The price of platinum has been largely subdued since record highs nearly a
decade ago due to high levels of above-ground stocks of the metal.

 

Sibanye-Stillwater agreed to buy Lonmin for about 285 million pounds ($395
million) in December.

 

($1 = 12.0808 rand)

 

 

 

Nigeria passes major oil reform bill after 17 year struggle

LONDON/ABUJA (Reuters) - Nigeria has moved closer to turning an oil industry
bill into law after a 17 year struggle to complete the legislation which
aims to increase transparency and stimulate growth in the country’s oil
industry.

 

Nigeria’ lower house of parliament has passed a version of the bill which is
the same as one approved by the Senate last year. This is the first time
both houses have approved the same version of the bill. It still needs the
president’s signature to become law.

 

The legislation - known as the Petroleum Industry Bill (PIB)- was broken up
into sections to help to get it through.

 

The House of Representatives passed the first part called the Petroleum
Industry Governance Bill (PIGB) on Wednesday.

 

“The PIGB, as passed yesterday, is the same as passed by the Senate. We have
harmonised everything and formed the National Assembly Joint Committee on
PIB,” Alhassan Ado Doguwa, a key PIB lawmaker in the House of
Representatives, told reporters in the capital Abuja.

 

“Every consideration of the bills is now under the joint committee. We have
broken the jinx after 17 years. We are working on the other accompanying
bills.”

 

The passage of the first bill means that the government can move forward
with new taxation legislation, which could make it more attractive for
companies to invest, particularly offshore.

 

“It’s an unprecedented step forward. The PIB is something that has defied
the last two governments,” Antony Goldman of PM Consulting said.

 

“The detail of what is agreed will determine the extreme to which the bill
takes politics out of the sector and tackles systemic corruption.”

 

Uncertainty over terms affecting taxation of upstream oil development has
been the main sticking point holding back billions of dollars of investment
for the oil industry. This will be addressed later in an accompanying bill.

 

Shell, Chevron, Total, ExxonMobil and Italy’s Eni are major producers in
Nigeria through joint ventures with the state oil firm NNPC.

 

The speaker for the House of Representatives Yakubu Dogara said later on
Thursday that “the new legislation will be transmitted to the President
within the next few days.”

 

The governance section deals with management of the Nigerian National
Petroleum Corporation (NNPC). The National Assembly Joint Committee is
working on two more bills as part of the PIB.

 

Dogara added that NNPC would be unbundled as a result of the legislation
going through.

 

The PIGB would create four new entities whose powers would include the
ability to conduct bid rounds, award exploration licences and make
recommendations to the oil minister on upstream licences.

 

Nigerian lawmakers ordered an investigation on Thursday into whether the
government could recover $21 billion in revenues from international oil
companies.

 

 

 

South African rand hits fresh 2-1/2 year high, government bonds firm

JOHANNESBURG (Reuters) - South Africa’s rand hit a fresh two-and-a-half year
high in early trade on Monday, extending a rally driven by optimism about
the prospects for change under the new leader of the ruling African National
Congress (ANC).

 

 

 

Egypt targets 8-10 flotations of state firms over 18 months -finance
minister

CAIRO (Reuters) - Egypt is looking to offer shares in eight to 10 state
companies on the stock exchange over the next 18 months, Finance Minister
Amr El-Garhy told Reuters on Sunday, as part of a drive to attract foreign
investors.

 

The flotations will be the first batch in a programme to float stakes in
dozens of state-owned companies over the next three to five years in areas
including oil, services, chemicals, shipping and real estate.

 

“The companies will include companies listed on the exchange and those not
listed,” Garhy told Reuters by phone, referring to the first batch.

 

He did not specify the sectors or sizes of the companies under
consideration.

 

The government said previously that it expected the first share offering
would be in oil company ENPPI, in the first quarter of 2018.

 

Egypt’s stock market has taken off since the country floated its pound
currency in November 2016, with the Egyptian blue-chip index gaining about
80 percent since then.

 

The government has said previously it plans to offer 20 percent of
state-owned Banque du Caire as well as a 40 percent stake in the Arab
African International Bank (AAIB), in which the central bank owns a stake.

 

The state owns vast swathes of Egypt’s economy, including three of its
largest banks - National Bank of Egypt, Banque Du Caire, the United Bank of
Egypt - along with much of its oil industry and real estate sector.

 

The last time state-owned companies were listed on the exchange was in 2005
when shares of Telecom Egypt, the state’s landline monopoly, and oil
companies Sidi Kerir Petrochemicals and AMOC were floated.

 

 

 

Egypt renews contract for 12 mln barrels of Iraqi crude - EGPC official

CAIRO (Reuters) - Egypt this month renewed a contract to import 12 million
barrels of Iraqi crude oil over the next year, an official at state
petroleum buyer EGPC said on Sunday.

 

The official, who declined to be named, said that six 2-million barrel
cargoes of crude would be supplied over the course of a year, starting this
month.

 

The Iraqi deal was originally agreed last April with the first shipment
arriving in May. Egypt has gone from exporting energy to being a net
importer as domestic output has failed to keep pace with rising demand.

 

 

 

Libya's NOC announces reopening of 50,000 bpd As-Sarah fields - statement

(Reuters) - Libya’s National Oil Corporation NOC announced on Sunday the
reopening of the eastern As-Sarah oil fields, where more than 50,000 barrels
per day (bpd) had been shut in by a blockade since November.

 

The NOC said the municipality of the Jakhira oasis decided to reopen the
fields under pressure from the NOC and Libya’s public prosecutor.

 

The fields are in a concession held by Germany’s Wintershall [WINT.UL],
which the NOC blamed for an “unauthorised” shutdown it said had cost Libya
more than $281 million. It called the decision to reopen the fields a
“humiliating setback” for a parallel NOC based in eastern Libya.

 

 

 

Saudi energy minister: oil producers have consensus on cooperating after
2018

MUSCAT (Reuters) - OPEC and non-OPEC oil producers have a consensus that
they should continue cooperating on production after the end of 2018, when
their current agreement on production cuts expires, Saudi Arabian energy
minister Khalid al-Falih said on Sunday.

 

If oil inventories increase in 2018 as some in the market expect, producers
may have to consider rolling the supply cut agreement into 2019, but the
exact mechanism for cooperation next year has not yet been decided, Falih
said.

 

He was speaking at a news conference after a meeting of the joint
ministerial committee which oversees implementation of the cuts. The
committee includes Russia and Kuwait, among other countries.

 

 

 

Nigeria unlikely to hold interest rate meeting next week -c.bank sources

ABUJA (Reuters) - Nigeria’s central bank is unlikely to hold an interest
rate setting meeting on Jan. 22 as scheduled because several new members of
the monetary policy committee (MPC) have yet to be approved by lawmakers,
two central bank sources told Reuters.

 

At least five of the MPC’s 12 members are due to be replaced after retiring
last year. “The indications that the MPC might not hold are there because of
quorum,” one of the sources said.

 

Central bank rules state that at least six members of the MPC are needed to
approve an interest rate decision. A rate announcement had been expected on
Jan 23, a day after the meeting.

 

The sources said the central bank would issue a statement.

 

At its last meeting in November, the MPC held rates at the same 14 percent
level it has kept for more than a year, to fight inflation and to attract
foreign investors to support the naira.

 

The head of Nigeria’s statistics bureau told Reuters this week he expects
inflation to fall faster this year than in 2017 as the economy and currency
stabilise, but warned that spending ahead of elections next year could stoke
price rises.

 

 

US shutdown: Senators trade blame ahead of Monday vote

US senators are struggling to agree on a bill to fund the government, which
is in its second day of shutdown.

 

A Senate session session adjourned late on Sunday and a vote has been
postponed to midday (05:30 GMT) on Monday.

 

Democratic and Republican senators have so far traded blame for the
shutdown.

 

Democrats want President Trump to negotiate over immigration as part of a
budget deal, but Republicans say no deal is possible while federal
government services are closed.

 

Mr Trump has called for a simple majority vote to end the impasse.

 

Under Senate rules, the bill needs 60 votes in the 100-member chamber to
overcome blocking tactics by opponents.

 

The Republicans currently have 51 senators and would need some Democratic
support to pass a budget.

 

But Mr Trump said the "nuclear option" of a simple-majority vote was
necessary.

 

 

The initial vote on a bill to fund the government until 8 February had been
scheduled for 01:00 on Monday (06:00 GMT). But it was postponed as Sunday's
session ended.

 

On Monday the closure of many federal services will be felt around the
country and hundreds of thousands of federal staff face unpaid leave.

 

The last government shutdown was in 2013, and lasted for 16 days.

 

Why can the two sides not agree?

This is the first time a government shutdown has happened while one party,
the Republicans, controls both Congress and the White House.

 

Friday's vote fell 50-49, far short of the 60 needed to advance the bill.

 

Democrats have demanded protection from deportation of more than 700,000
undocumented immigrants who entered the US as children.

 

"I hope it is just a matter of hours or days. But we need to have a
substantive answer, and the only person who can lead us to that is President
Trump. This is his shutdown," Democratic Senator Dick Durbin told the CBS
network.

 

Republicans want funding for border security - including the border wall -
and immigration reforms, as well as increased military spending.

 

Speaking to US troops in the Middle East, Vice-President Mike Pence
reiterated his party's stance.

 

"We're not going to reopen negotiations on illegal immigration until they
reopen the government and give you, our soldiers and your families, the
benefits and wages you've earned," he said.

 

 

The US budget must be approved by 1 October - the start of the federal
financial year.

 

But Congress has often failed to meet this deadline and negotiations
continue well into the new year, with the previous year's funding to federal
agencies extended on a temporary basis.

 

Because Congress failed to agree an extension, many federal agencies
effectively closed for business as of 00:01 on Saturday (05:01 GMT).

 

Most staff in the departments of housing, environment, education and
commerce will be staying at home on Monday. Half of workers in the treasury,
health, defence and transportation departments will also not be going to
work.

 

 

But essential services that protect "life or human property" will continue,
including national security, postal services, air traffic control, inpatient
medical services, emergency outpatient medicine, disaster assistance,
prisons, taxation and electricity generation.

 

And the Trump administration said it planned to keep national parks open -
their closure in the 2013 shutdown provoked an angry public reaction.

 

Why the US government has shut down

The shutdown began on the first anniversary of President Trump's
inauguration. His trip to the World Economic Forum in Davos, Switzerland,
next week has also been called into question.

 

What happened during the 2013 shutdown?

Many federal employees were forced to take a leave of absence - officially
known as being furloughed - during the 16 days of shutdown.

 

It cost the government $2bn in lost productivity and led to "significant
negative effects on the economy", the OMB said at the time.

 

Donald Trump laid the blame for the shutdown with the then president, Barack
Obama.

 

Federal workers cannot get paid for days worked during a lapse in funding.
In the past, however, they have been repaid retroactively even if they were
ordered to stay at home.

 

10 unexpected consequences of the 2013 shutdown--BBC

 

 

 

'World's richest 1% get 82% of the wealth', says Oxfam

The gap between the super rich and the rest of the world widened last year
as wealth continued to be owned by a small minority, Oxfam has claimed.

 

Some 82% of money generated last year went to the richest 1% of the global
population while the poorest half saw no increase at all, the charity said.

 

Oxfam said its figures - which critics have queried - showed a failing
system.

 

It blamed tax evasion, firms' influence on policy, erosion of workers'
rights, and cost cutting for the widening gap.

 

Oxfam has produced similar reports for the past five years. In 2017 it
calculated that the world's eight richest individuals had as much wealth as
the poorest half of the world.

 

This year, it said 42 people now had as much wealth as the poorest half, but
it revised last year's figure to 61. Oxfam said the revision was due to
improved data and said the trend of "widening inequality" remained.

 

'Unacceptable'

Oxfam chief executive Mark Goldring said its constant readjustment of the
figures reflected the fact that the report was based "on the best data
available at the time".

 

"However you look at it, this is an unacceptable level of inequality," he
said.

 

Oxfam's report coincides with the start of the World Economic Forum in
Davos, a Swiss ski resort. The annual conference attracts many of the
world's top political and business leaders.

 

Inequality typically features high on the agenda, but Mr Goldring said that
too often "tough talk fades away at the first resistance".

 

It's really hard working out how much wealth the super-rich and the very
poor have.

 

The super-rich tend not to publicise their worth and many of the world's
poorest countries keep poor statistics.

 

To illustrate that, this time last year, Oxfam told us that eight
individuals have as much wealth as the poorest half of the world's
population. Now it has revised that figure to 61 people for last year,
falling to 42 people this year - that's a pretty big revision.

 

And there are other caveats around the data on which all this is based, such
as that the people on the list with the lowest wealth are not necessarily
poor at all - they may be highly qualified professionals with large amounts
of student debt, for example, or people with high incomes but enormous
mortgages.

 

But whether it's eight people, 42 people or 61 people who have the same
wealth as half of the world, there is still great wealth inequality around
the world, which is the message Oxfam is taking to Davos.

 

The charity is urging a rethink of business models, arguing their focus on
maximising shareholder returns over broader social impact is wrong.

 

It said there was "huge support" for action with two thirds (72%) of 70,000
people it surveyed in ten countries saying they wanted their governments to
"urgently address the income gap between rich and poor".

 

But Mark Littlewood, director general at free market think tank The
Institute of Economic Affairs, said Oxfam was becoming "obsessed with the
rich rather than the poor".

 

"Higher taxes and redistribution will do nothing to help the poor; wealth is
not a fixed pie. Richer people are also highly taxed people - reducing their
wealth won't lead to redistribution, it will destroy it to the benefit of no
one," he added.

 

It was a criticism echoed by Sam Dumitriu, head of research at another free
market think tank - the Adam Smith Institute - who said the charity's
inequality stats "always paint the wrong picture".

 

"In reality, global inequality has fallen massively over the past few
decades.

 

"As China, India and Vietnam embraced neoliberal reforms that enforce
property rights, reduce regulations and increase competition, the world's
poorest have received a massive pay rise leading to a more equal global
income distribution."

 

How does Oxfam work out the figures?

Oxfam's report is based on data from Forbes and the annual Credit Suisse
Global Wealth datebook, which gives the distribution of global wealth going
back to 2000.

 

The survey uses the value of an individual's assets, mainly property and
land, minus debts, to determine what he or she "owns". The data excludes
wages or income.

 

The methodology has been criticised as it means that a student with high
debts, but with high future earning potential, for example, would be
considered poor under the criteria used.

 

But Oxfam said even if the wealth of the poorest half of the world was
recalculated to exclude people in net debt their combined wealth was still
equal to that of just 128 billionaires.--BBC

 

 

 

Amazon opens a supermarket with no checkouts

In a move that could revolutionise the way we buy groceries, Amazon opens
its first supermarket without checkouts - human or self-service - to
shoppers on Monday.

 

Amazon Go, in Seattle, has been tested by staff for the past year.

 

It uses an array of ceiling-mounted cameras to identify each customer and
track what items they select, eliminating the need for billing.

 

Purchases are billed to customers' credit cards when they leave the store.

 

Before entering, shoppers must scan the Amazon Go smartphone app. Sensors on
the shelves add items to the bill as customers pick them up - and deletes
any they put back.

 

The changing face of retail

 

Amazon finally arrives in Australia

 

The store opened to employees of the online retail giant in December 2016
and had been expected to allow the public in more quickly.

 

But there were some teething problems with correctly identifying shoppers of
similar body types - and children moving items to the wrong places on
shelves, according to an Amazon insider.

 

Gianna Puerini, head of Amazon Go, said the store had operated well during
the test phase: "This technology didn't exist - it was really advancing the
state of the art of computer vision and machine learning."

 

Amazon has not said if it will be opening more Go stores, which are separate
from the Whole Foods chain that it bought last year for $13.7bn (£10.7bn).

 

As yet the company has no plans to introduce the technology to the hundreds
of Whole Foods stores.

 

However, retailers know that the faster customers can make their purchases,
the more likely they are to return.

 

Making the dreaded supermarket queue a thing of the past will give any
retailer a huge advantage over its competitors.

 

The Seattle store is not Amazon's first foray into bricks and mortar
retailing, however. In 2015 the firm opened its first physical bookshop,
also in Seattle where the company is based. There are now 13 in the US - as
well as dozens of temporary pop-up outlets.

 

In its third quarter results in October, Amazon for the first time put a
figure on the revenues generated by its physical stores: $1.28bn. Yet almost
all of that was generated by Whole Foods.

 

While its stores may not yet be moneyspinners, analysts have said Amazon is
using them to raise brand awareness and promote its Prime membership scheme.
Prime members pay online prices at its bookstores, for example, while
non-members are charged the cover price.

 

Brian Olsavsky, Amazon chief financial officer, recently hinted that rivals
should expect more Amazon shops in the months and years ahead.

 

"You will see more expansion from us - it's still early, so those plans will
develop over time," he said in October.--BBC

 

 

UK growth upgrade could 'dwarf' Brexit hit

Britain should prepare for a much more economically optimistic 2018 because
global growth is better than predicted.

 

That's the argument of Lord Jim O'Neill, the former Conservative Treasury
minister and Remain supporter.

 

He said Britain's growth forecasts are likely to be upgraded as China, the
US and Europe show increased activity.

 

The gloomy predictions of the possible effects of Brexit are likely to be
"dwarfed" by the more positive figures, Lord O'Neill added.

 

But he argued that far from "changing his mind" on the economic effects of
Brexit, the question now for the UK was how much better the country could be
doing without the uncertainty over its relationship with the European Union.

 

"I certainly wouldn't have thought the UK economy would be as robust as it
currently seems," Lord O'Neill, who is on the board of the Northern
Powerhouse Partnership, told me.

 

"That is because some parts of the country, led by the North West [of
England], are actually doing way better than people seem to realise or
appreciate.

 

"As well as this crucial fact, the rest of the world is also doing way
better than many people would have thought a year ago, so it makes it easier
for the UK."

 

Read more from Kamal Ahmed

Hammond on EU: Stop talking about 'punishing' UK over Brexit

 

The 'making stuff' boom - here's why it matters

 

Why stock markets are at record highs

 

A recent assessment by Cambridge Econometrics for the Mayor of London
suggested that growth across the UK could be on average 3% lower by 2030
than it would have been if Britain remained within the EU's single market
and customs union.

 

"If that's the worst that Brexit will deliver, then I wouldn't worry about
it," Lord O'Neill said ahead of the World Economic Forum in Davos,
Switzerland, where there are likely to be a number of positive growth
upgrades published for the global economy.

 

"Now, my own view is if we go for a really hard Brexit or a no-deal Brexit,
we'll probably suffer more than that 3%.

 

"But if it is only 3%, what's going on with the rest of the world - helping
us - and with productivity improving, that will easily dwarf a 3% hit over
13 years, easily."

 

Lord O'Neill said it was ironic that Britain was leaving the EU at just the
time growth was increasing across the continent, given that one of the
arguments for leaving was unshackling the UK from a number of "sclerotic"
European economies.

 

Better global growth helps UK exports - an important driver of the British
economy.

 

I asked him whether his optimistic forecasts now revealed that he, and many
economists, had simply been too pessimistic about the effects of a Brexit
vote.

 

"I'm almost embarrassed to accept that it might sound like that," Lord Neill
replied.

 

"Because of course in principle I share the views of many that Brexit is a
really weird thing for the UK to impose on itself from an economic
perspective.

 

"And maybe this [better global growth] means the country's going to be able
to cope with Brexit better than certainly somebody like me might have
thought some time ago.

 

"But I would quickly add at the same time, I have felt for a good couple of
years, as important as Brexit is, it isn't the most important thing facing
Britain's future."

 

He said that global growth, better productivity and rebalancing government
policies to support the north of England and other regions beyond London was
much more important.

 

There was some evidence, Lord O'Neill argued, that was now happening.

 

He said that the "Brexiteers are going to be like the cat with the cream.
They're like 'there you go, told you so', which of course is ridiculous".

 

Lord O'Neill said that major sectors of the economy that are closely linked
to the EU, such as car manufacturing and pharmaceuticals, were still facing
significant threats because of the government's proposals to leave the
customs union and the single market.

 

 

Over the past six months economic forecasts have become more bullish on
world growth. China, the US and Germany have all published strong economic
data and last autumn the International Monetary Fund upgraded its global
predictions.

 

"I'm guessing world GDP growth of at least 4%, so a good half percent higher
than the consensus is currently saying - and signs of it actually
accelerating," Lord O'Neill said.

 

"Virtually every major place I can think of, [with the] possible exception
of us, are all sharing in it at the same time. World trade - just when
everybody's trying to write it off - has actually risen sharply."

 

He said that President Donald Trump's reforms of the tax system and plans to
loosen regulatory controls would boost the US economy.

 

"The secular stagnation that the likes of Larry Summers [the former US
Treasury Secretary] have talked about for a few years looks suspiciously
dodgy. I would imagine that the idea is going to be back tracked pretty
quickly now."--BBC

 

 

CBI calls for UK to remain in a customs union with EU

Time is running out on Brexit, and the UK should remain in a customs union
with the EU, the CBI has warned.

 

Carolyn Fairbairn, head of the UK business group, said there was a "lack of
clarity" surrounding ongoing talks about the future of UK-EU trade.

 

Speaking on ITV's Peston on Sunday, she also said a customs union would be
best for UK economic growth and prosperity.

 

The UK's Department for Exiting the EU said Brussels had an "ambitious free
trade approach" to exit discussions.

 

"We are confident of negotiating a deep and special economic partnership
that includes a good deal for financial services - that will be in the EU's
best interests, as well as ours," a spokesman said.

 

But they added "as the prime minister has already made clear, we will be
leaving the single market and the customs union after EU exit day",
referring to 29 March 2019.

 

Being a member of a customs union means that once goods have cleared customs
in one country, they can be shipped to others in the union without further
tariffs being imposed.

 

Businesses have been calling for clarity on what a replacement system will
involve.

 

'Frictionless trade'

In a speech at Warwick University on Monday CBI director general Ms
Fairbairn will elaborate on her concerns, and say progress is needed on a
transitional EU trade deal by April.

 

She will also say the framework for a future business trading relationship
with Europe must be set out by October.

 

Theresa May has already rejected full membership of the customs union as it
could prevent the UK striking its own post-Brexit trade deals.

 

But Ms Fairbairn will say: "There may come a day when the opportunity to
fully set independent trade policies outweighs the value of a customs union
with the EU.

 

"A day when investing time in fast-growing economies elsewhere eclipses the
value of frictionless trade in Europe. But that day hasn't yet arrived."

 

Remaining a member of a customs union "for as long as it serves us to do so
is consistent with the result of the referendum and would be good for EU
firms too" she will add.

 

'British business handcuffed'

Ms Fairbairn will set a 70-day deadline for a written agreement on a
transitional trade deal between the UK and EU.

 

"Decisions must be taken fast, or firms will have no choice but to trigger
their plan Bs," she will warn.

 

"More jobs and investment will leave our shores and future generations will
pay the price."

 

But Richard Tice, Co-Chair of campaign group Leave Means Leave said: "Only
by leaving the customs union can the UK forge new independent trade deals
with the rest of the world. Remaining in a customs union with the EU will
eliminate major economic benefits of Brexit.

 

"Remaining in a customs union will handcuff all of British businesses to
bureaucratic EU red tape even though approximately 90% do not trade with the
EU. This is one of the major benefits of leaving."--BBC

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


(c) 2018 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

Invest Wisely!

Bulls n Bears 

 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180122/6df9c2c6/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180122/6df9c2c6/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180122/6df9c2c6/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image009.jpg
Type: image/jpeg
Size: 23437 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180122/6df9c2c6/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image010.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180122/6df9c2c6/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image011.jpg
Type: image/jpeg
Size: 29388 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180122/6df9c2c6/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image012.jpg
Type: image/jpeg
Size: 29420 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180122/6df9c2c6/attachment-0011.jpg>