Major International Business Headlines Brief::: 24 January 2018

Wed Jan 24 12:44:34 CAT 2018

 <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::: 24 January 2018

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

*  Zimbabwe's gold output rose to 24.8 tonnes in 2017: central bank

*  IMF chief meets S.Africa's Ramaphosa in Davos to discuss economy

*  South Africa's CPI quickens to 4.7 percent year/year in December

*  Kenyan interest rate cap holding back growth: central bank head

*  South Africa's rand steadies at 2-1/2-year high, stocks set to open flat

*  Egypt's Suez Canal revenues rise to $471.5 mln in Dec

*  Angola opens up fuel imports with first major tender: sources

*  Another executive resigns at South Africa's Eskom

*  Total to buy shares in Kenyan oil blocks from AP Moeller-Maersk

*  Kleenex-maker Kimberly-Clark to cut at least 5,000 jobs

*  Trump's choice Jerome Powell approved as Federal Reserve head

*  Ikea boss says it pays fair share of tax

*  Stripe to ditch Bitcoin payment support

*  Tesla: Elon Musk links long-term pay to company's growth

 <mailto:info at bulls.co.zw> 

Zimbabwe's gold output rose to 24.8 tonnes in 2017: central bank

HARARE (Reuters) - Zimbabwe’s full year gold production rose to 24.8 tonnes
in 2017 from 22.7 tonnes 

the previous year, the central bank’s refining and printing subsidiary said
on Wednesday.

A Zimbabwean miner works underground at Mwana Africa's Freda Rebecca Gold
Mine near Bindura, about 

Gold is the southern African nation’s top mineral export earner, with
production rising in the last four 

years after small-scale and individual miners received financial and
equipment support from the 

government.

 <mailto:info at bulls.co.zw> 

IMF chief meets S.Africa's Ramaphosa in Davos to discuss economy

WASHINGTON (Reuters) - IMF chief Christine Lagarde said on Tuesday she had
met with South African 

Deputy President Cyril Ramaphosa on the sidelines of the World Economic
Forum in Davos and agreed 

that structural challenges were a burden to economic growth in Africa’s
largest economy.

Their meeting comes a day after the International Monetary Fund cut South
Africa’s growth forecast for 

the next two years, citing political uncertainty.

“We concurred that long-standing structural challenges continue to weigh on
growth in South Africa,” 

Lagarde said in a statement, adding: “We consequently agreed that bold and
timely reforms are needed 

to create an environment conducive to job creation and less inequality.”

Ramaphosa was elected president of the ruling African National Congress last
month, making him likely to 

replace President Jacob Zuma in 2019, or even earlier.

He has signaled a departure in style and governance from Zuma’s
scandal-plagued administration. The 

ANC is currently discussing whether to cut short Zuma’s tenure as head of
state.

South African businesses have urged Ramaphosa and the ANC’s newly elected
leaders to quickly 

introduce reforms that would restore investor confidence and reverse the
economy’s decline.

The South African currency, the rand, has surged since Ramaphosa took the
reins of the ANC.

South Africa's CPI quickens to 4.7 percent year/year in December

JOHANNESBURG (Reuters) - South Africa’s headline consumer inflation
quickened to 4.7 percent year-

on-year in December from 4.6 percent in November, data from Statistics South
Africa showed on 

Wednesday.

On a month-on-month basis, inflation quickened to 0.5 percent in December
from 0.1 percent in 

November.

Core inflation, which excludes the prices of food, non-alcoholic beverages,
petrol and energy, fell to 4.2 

percent year-on-year in December from 4.4 percent in November, while on a
month-on-month basis it 

quickened to 0.3 percent from 0.0 percent previously.

Kenyan interest rate cap holding back growth: central bank head

NAIROBI (Reuters) - Kenya’s central bank governor said on Tuesday the
country’s interest rate cap was holding back the economy, but still forecast
that growth would speed up to 6.2 per cent in 2018.

Patrick Njoroge told reporters in Nairobi that the forecast could go higher
in the event of a supportive fiscal policy.

The government adopted the cap in September 2016, setting it at 4 percent
above the central bank’s benchmark rate, to limit the cost of borrowing from
commercial banks, saying they had failed to pass on the benefits of growth
in the industry to consumers.

The central bank had previously questioned the measure, saying in September
it had made predicting the impact of monetary policy difficult.

“The interest rate cap has been acting as a brake to the economy,” Njoroge
said on Tuesday.

A prolonged election cycle last year cut growth by nearly 1 percent from the
initial forecast, trimming it to 5 percent. [L8N1OT1X6]

Njoroge said the performance of the agriculture sector was a drag on the
economy last year. It accounts for 30 percent of output.

South Africa's rand steadies at 2-1/2-year high, stocks set to open flat

JOHANNESBURG (Reuters) - South Africa’s rand steadied against the dollar
early on Wednesday, holding at a two-and-a-half-year high, supported by a
weaker greenback and expectations the new leader of the ruling African
National Congress would rejuvenate the economy.

At 0645 GMT, the rand traded at 12.0300 per dollar, largely steady from its
New York close on Tuesday.

The rand is trading at its best levels against the dollar since May 2015,
according to Thomson Reuters data.

The South African currency has surged since Cyril Ramaphosa won the race to
succeed Jacob Zuma as ANC leader last month, putting him in pole position to
become the country’s next president.

Ramaphosa, currently the country’s deputy president, has pledged to fight
corruption and woo foreign investment.

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

In fixed income, the yield for the benchmark government bond was down 4
basis points to 8.315 percent.

Egypt's Suez Canal revenues rise to $471.5 mln in Dec

CAIRO (Reuters) - Egypt’s Suez Canal revenues rose to $471.5 million in
December from $462.7 million in November, official data showed on Wednesday.

The Suez Canal authority said earlier this month that revenues rose to $5.3
billion in 2017 from $5 billion in 2016.

The Suez Canal is the fastest shipping route between Europe and Asia and one
of the main sources of foreign currency for the Egyptian government.

Angola opens up fuel imports with first major tender: sources

(Reuters) - Angolan state oil firm Sonangol has issued its first public
tender to buy refined products to widen its import base, market sources who
have seen the tender said, in a sign the country is committed to reforming
its oil industry.

For years OPEC member Angola has largely relied on commodities trader
Trafigura for fuel imports. The trader still supplies gasoil but major
competitor Vitol recently edged in to supply the country with gasoline.

Heavily reliant on oil sales for government income, Angola was crushed by
the 2014 oil price crash, which pushed its economy into recession and
created foreign currency shortages that crippled business.

President Joao Lourenco has committed to economic reforms and ordered a
review of the country’s oil industry after he took office last September,
succeeding Jose Eduardo dos Santos who stepped down after 38 years in power.

Lourenco also sacked the former president’s daughter Isabel as head of
Sonangol - an appointment made by her father in 2016 - after oil majors
complained of payment backlogs and delayed project approvals.

The tender to buy refined products signals one step towards reform of the
oil industry.

One of the sources said the tender would close on Jan. 31 and was looking
for 1.2 million tonnes of gasoline, 2.1 million tonne of gasoil and 480,000
tonnes of marine fuel.

“The real market liberalisation is still to come as Sonangol remains the
monopoly importer,” one of the sources said.

Another executive resigns at South Africa's Eskom

JOHANNESBURG (Reuters) - The acting head of group capital at South Africa’s
Eskom has resigned, the state-owned power utility said on Tuesday, adding to
a growing list of executives leaving the company.

Spokesman Khulu Phasiwe said Prish Govender did not give a reason for his
resignation, which is with immediate effect.

Govender’s departure comes a day after suspended Chief Financial Officer
Anoj Singh tendered his resignation with immediate effect on Monday, amid an
investigation into allegations he granted preferential treatment to firms
supplying coal to Eskom. Singh has denied wrongdoing.

South Africa’s parliament is investigating Eskom over allegations executives
were involved in unduly awarding contracts to friends of President Jacob
Zuma.

The utility’s chairman, Zethembe Khoza, also quit on Saturday, hours before
the government named a new Eskom board, ending a power vacuum that dates
back to mid-2017 when then chairman Ben Ngubane resigned and the government
reversed Eskom’s decision to reinstate Brian Molefe as chief executive.

($1 = 12.0748 rand)

Total to buy shares in Kenyan oil blocks from AP Moeller-Maersk

NAIROBI (Reuters) - France’s Total SA will acquire shares in three Kenyan
oil blocks from AP Moeller-Maersk, the office of Kenya’s President Uhuru
Kenyatta said in a statement on Tuesday.

Kleenex-maker Kimberly-Clark to cut at least 5,000 jobs

Kleenex-maker Kimberly-Clark has said it will close or sell 10 manufacturing
plants and cut at least 5,000 jobs - about 12% of its workforce.

The move comes as the Texas company struggles to lift sales. In the fourth
quarter of 2017, sales rose by just 1%.

Kimberly-Clark said the restructuring would streamline its supply chain,
saving at least $500m by the end of 2021.

The savings are in addition to a plan to reduce costs by $1.5bn in that
time.

Kimberly-Clark chief executive Thomas J Falk said the restructuring - which
carries costs of as much as $1.9bn by 2020 - will make the company "leaner,
stronger and faster".

"These are difficult but necessary actions to make Kimberly Clark an even
stronger company going forward," he said on a phone call with financial
analysts on Tuesday.

In a statement, he described market conditions as "challenging".

The company has been forced to cut prices amid competition from rivals and
store brands, even as the cost of some raw materials has increased.

In addition, executives said the firm has been hurt by declining birth rates
in key markets, such as the US and South Korea, which have reduced demand
for diapers and other staples.

"You can't encourage moms to use more diapers... when the babies aren't
being born," Mr Falk said.

The firm, which sells items under the Andrex and Huggies brands, reported
$617m in profits in the fourth quarter on sales of $4.6bn.

For the year as a whole, sales were $18.2bn, almost unchanged from 2016,
while profits rose 5% to $2.28bn.

Executives said they are hopeful that prices have stabilised. The firm
predicted that sales would rise by between 1% and 2% this year.

It is banking on a suite of new products to drive growth. The company is
also investing in its digital sales, an important part of growth in markets
such as China. Online sales represent more than half of the firm's business
in China.

Kimberly-Clark, which has more than 90 facilities globally including those
of affiliates, did not say which plants it intended to close. It said it
expected the job cuts to occur across geographies and business units.

It also plans to expand in some locations and spend at least $2.1bn on share
buybacks and dividends.--BBC

Trump's choice Jerome Powell approved as Federal Reserve head

Donald Trump's choice for the next head of the US central bank - the world's
most powerful economics job - has been approved by US senators.

Jerome Powell, a multi-millionaire, was backed in a 84-13 vote as chair of
the Federal Reserve with support from Republicans and many Democrats.

Mr Powell, who was named as Mr Trump's nominee in November, is a Republican
who is seen to back low interest rates.

Janet Yellen, the current Fed chair, will see her term expire in February.

She was appointed by President Obama in 2014 and has been the first woman to
hold the position.

Who is Jerome Powell?

Safe choice for economy?

The appointment marks the end of a decades-long tradition that has seen
presidents stick with the Federal Reserve chair who was in charge when they
took office.

Mr Powell has served on the Fed's board since 2012, and is expected to take
over when Ms Yellen leaves her post on 3 February.

Among the candidates President Trump was considering, Mr Powell, a
64-year-old lawyer, was seen as a safe choice who would provide continuity
for existing US monetary policy, and not rattle markets.

He has been supportive of gradual interest rate rises and of the consensus
that the Fed should slowly decrease the asset holdings it gathered as part
of its efforts to battle the financial crisis.

Banking committee chairman Mike Crapo, a Republican, said Mr Powell would be
"central to ensuring a safe and sound financial system while supporting a
vibrant, growing economy".

But Senator Elizabeth Warren, a Democrat, said the Fed chair needed to be
someone who would stand up to Wall Street, adding that Mr Powell was not
that person.

There has also been some speculation that President Trump, who has
businesses which could benefit from lower interest rates, will attempt to
unduly influence Fed decisions.

The Fed last raised interest rates in December by 0.25 basis points, which
was the third rate rise in 2017. Mr Powell will now preside over further
rate rise decisions, which may not fall in line with President Trump's
interests.

The Trump administration also wants to see some post-financial crisis
regulations rolled back - a push from government that Mr Powell will also
need to manage.

Growth target

Under Ms Yellen's stewardship, the US economy has seen its strongest six
months of economic activity since 2014.

The latest official figures released in December show that the world's
largest economy grew at an annual rate of 3.2% in the third quarter of 2017.
Growth in the previous quarter came in at 3.1%.

At the time, current Fed chair Ms Yellen said the economy, labour market and
financial system had grown stronger under her watch.

President Trump's target for US economic growth has been 3%, but he has also
spoken of his desire to see it expand at a rate as high as 6%.--BBC

Ikea boss says it pays fair share of tax

Ikea Group boss Jesper Brodin has told the BBC that the company pays its
fair share of tax worldwide.

The flatpack furniture retailer, which has more than 360 stores, paid 25%
tax last year, Mr Brodin said.

EU tax officials opened an investigation last month into a separate part of
Ikea.

Inter Ikea, which controls the company's brand rights, may have been given
unfair tax advantages by the Netherlands, the commission said.

Mr Brodin acknowledged the launch of the EU investigation, but said it was
focused on a separate part of the business.

Inter Ikea, which collects royalty payments from Ikea stores, said last
month that it believed that the way it had been taxed "has in our view been
in accordance with EU rules".

Mr Brodin, who took the helm of the Swedish furniture giant last September,
said Ikea Group was "a stable payer of tax".

He noted that Ikea's continuing profitability even in the "tough years"
after the 2008 financial crisis meant it had consistently continued to pay
tax.

"We think it's important to contribute to society in many ways and paying
tax is one part of it. We believe we do," he added.

Waste pledge

Mr Brodin is at the World Economic Forum in Davos to talk about the so
called circular economy where products are used for as long as possible
before being broken down and used to make something else.

Ikea has pledged to eliminate waste from its operations by 2020.

Mr Brodin, who was previously head of Ikea's supply chain and product range
business, said the aim was not at odds with its role as a retailer creating
and selling more products.

More from Davos on the BBC

"All products will sooner or later reach the end of their life," he said.

He said the group's growing scale - it now has 362 stores globally - meant
it could make an impact on the issue.

The company is currently trialling different solutions in different
countries.

In Japan, for example, customers can sell their furniture back to Ikea to be
resold.

Whereas in Belgium customers can get their furniture repaired or donated to
charity.

"Our markets are at different levels of maturity. It might not be one size
fits all," he added.--BBC

Stripe to ditch Bitcoin payment support

Stripe, the firm which helps more than 100,000 businesses do financial
transactions online, is to scrap support for Bitcoin payments.

It said Bitcoin users now saw the virtual currency largely as an "asset" to
be traded, rather than something to make payments with.

Fewer online merchants wanted to accept the cryptocurrency, it added.

Rising fees and longer transaction times as a result of price fluctuations
also lessened its appeal, Stripe said.

'Expensive'

Customers of the US-based payments firm pay a fee to Stripe each time it
processes a payment. Clients include Lyft, Deliveroo, Grab and Target.

In 2014, it became the first major payments company to support Bitcoin
payments.

At the time Stripe said it hoped Bitcoin would become a way for people in
places with low credit card penetration or prohibitively high credit card
fees to do transactions online.

But the virtual currency was now "better-suited to being an asset than being
a means of exchange," it said.

There has been a huge surge of interest in the digital currency over the
past year or so, driven largely by its rapid increase in price.

But that demand has also led to huge swings in price, with Stripe saying the
volatility meant the time needed to complete a sale had risen.

"By the time the transaction is confirmed, fluctuations in Bitcoin price
mean that it's for the 'wrong' amount," Stripe's product manager Tom Karlo
said in his blog.

Bitcoin transaction fees had also risen "a great deal" resulting in a
decrease in demand from Stripe's customers to accept Bitcoin payments, he
said.

Meet the world's youngest self-made billionaire

Payments firm Stripe strikes China deal

What is Bitcoin?

"For a regular Bitcoin transaction, a fee of tens of US dollars is common,
making Bitcoin transactions about as expensive as bank wires," Mr Karlo
wrote.

"Because of this, we've seen the desire from our customers to accept Bitcoin
decrease. And of the businesses that are accepting Bitcoin on Stripe, we've
seen their revenues from Bitcoin decline substantially."

Giving up on cryptocurrencies?

Stripe said it would start winding down its support for Bitcoin immediately
and would stop all transactions by 23 April.

But it said its decision to end support for Bitcoin payments did not mean it
was giving up on cryptocurrencies all together.

"We're interested in what's happening with Lightning and other proposals to
enable faster payments," Mr Karlo said.

"OmiseGO is an ambitious and clever proposal; more broadly, Ethereum
continues to spawn many high-potential projects."---BBC

Tesla: Elon Musk links long-term pay to company's growth

Elon Musk, founder of the electric carmaker Tesla, has agreed a new salary
package based on it becoming one of the world's most valuable companies.

His pay will be tied to growth in Tesla's stock market value, starting at
$100bn (£72bn) and rising to $650bn.

To receive maximum remuneration, Tesla - now valued at $60bn - would have to
be six times bigger than Volkswagen.

As well as growth in Tesla's market value, Mr Musk's pay will also be linked
to 12 revenue and profit goals.

The plan needs to be signed off by shareholders in a vote in March.

Not driven by money

The proposal is similar to the structure of his last salary package, which
was put in place in 2012.

Under that plan, Mr Musk was awarded stock options that vested only if the
company continued to perform well and reach certain milestones.

The polymath entrepreneur has said many times before that he is not driven
by money.

Tesla expects to pay him $49,920 in 2016-17, but he says he does not cash
the cheques. Instead he lives off loans made against the value of his
shares. The value of his stake in the business is $11.8bn.

Nevertheless, Tesla's new plan is quite a challenge.

The company continues to lose money and at one point last year was leaking
almost $500,000 an hour.

Its future hangs on the Model 3 sedan, but Tesla has struggled to ramp up
production of the most affordable electric car in its range.

The company made only 260 in the third quarter of last year because of what
it called "production bottlenecks", when it had planned to build more than
1,500.

Strikingly, Musk's proposed remuneration plan no longer includes vehicle
output targets, unlike his previous deal.

If Mr Musk hits only a few of the proposed milestones, he will make billions
in the value of his shares.

If he were to hit them all, and assuming that the company did not issue more
shares over the next 10 years (which seems unlikely), Mr Musk would be in
line to receive shares worth about $55bn.

As compensation plans go, Tesla's proposal is about as friendly to
shareholders as they come.

If Mr Musk succeeds in hitting his benchmarks, the company's employees,
including those who work on the factory floor, who get paid in both cash and
stock, could become wealthy.

As with many of the big tech firms, succession planning is critical to
confidence in the company.

The Tesla board requires Mr Musk to see through this 10-year plan. So, he is
locked down to remaining chief executive, or executive chairman and chief
product officer for the next decade.

This is significant. It allows for any incomer to take over the managerial
control of the company whilst allowing Mr Musk to retain creative and
strategic control of Tesla.--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/20180124/d136560c/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/20180124/d136560c/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 23437 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180124/d136560c/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180124/d136560c/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29388 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180124/d136560c/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29420 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180124/d136560c/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180124/d136560c/attachment-0011.jpg>