Major International Business Headlines Brief::: 26 January 2018

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Major International Business Headlines Brief::: 26 January 2018

 


 

 


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*  IMF's Lagarde welcomes Mnangagwa's promise to revive Zimbabwe economy

*  Nigeria eyes $2.5 bln Eurobond sale in Q1 to refinance local debt

*  Nigeria's 9mobile takeover looms as advisers evaluate bids: sources

*  South African rand firmer, stocks set to open higher

*  South Africa's RBCT says 2017 coal exports at record high

*  Gold heads for weekly gain on softer dollar despite Trump comments

*  South Africa's PSA union, PIC to pursue class action against Steinhoff

*  Mauritius business confidence jumps to its highest in Q4 2017

*  South Africa's December producer inflation rises to 5.2 pct year/year

*  Carney calls for 'deeper relationship' with Europe

*  Goldman Sachs boss warns on irreversible Brexit plans

*  Walmart signs Japan online grocery deal with Rakuten

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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IMF's Lagarde welcomes Mnangagwa's promise to revive Zimbabwe economy

WASHINGTON (Reuters) - IMF chief Christine Lagarde on Thursday welcomed a
commitment by Zimbabwe’s new President Emmerson Mnangagwa to stabilize the
country’s economy and work to improve relations with the international
community.

 

Lagarde met with Mnangagwa on the sidelines of the World Economic Forum in
Davos, Switzerland. It was their first meeting since Mnangagwa took power in
November when the military ousted Robert Mugabe, who ruled for 37 years.

 

“This was an opportunity to share views on ways to address the severe
economic challenges that Zimbabwe is facing, and how the IMF can help,”
Lagarde said on Twitter after the meeting.

 

Afterward, the International Monetary Fund said Lagarde “welcomed President
Mnangagwa’s commitment to stabilizing the Zimbabwean economy and working
towards normalizing the country’s engagement with the international
community.”

 

International donors withdrew support for Mugabe’s government after he
imposed policies that included violent seizure of white-owned commercial
farms.

 

The country has not been able to borrow from international lenders since
1999 when it started defaulting on its debt.

 

The country cleared its 15-year-old financial arrears to the IMF in 2016. It
is, however, still in arrears to the World Bank and African Development
Bank, which hampers its ability to tap development financing from the two
institutions.

 

The IMF has told Zimbabwe not to clear its $1.75 billion foreign arrears by
borrowing from lenders, which would worsen the country’s debts.

 

Instead it has suggested cuts to public sector wages, reducing farm
subsidies, improving transparency in the mining sector and reaching an
agreement on compensating farmers.

 

Addressing an audience in Davos on Monday, Mnangagwa promised to hold
transparent elections by July and said he would respect the outcome of the
vote even if the opposition wins.

 

The election will be the first big test of his legitimacy since he took
power. [nL8N1PJ4GM]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Nigeria eyes $2.5 bln Eurobond sale in Q1 to refinance local debt

LAGOS (Reuters) - Nigeria will consider raising $2.5 billion through
Eurobonds in the first quarter to refinance a portion of its domestic
treasury bill portfolio at lower cost, the head of the Debt Management
Office told Reuters on Thursday.

 

Patience Oniha said the country will also try to get back into the JP Morgan
Government Bond Index (GBI-EM), with improving liquidity in the local
currency market.

 

She said a Eurobond placement will depend on market conditions, pricing and
tenor.

 

“We are looking the issue probably first quarter depending on what the
advisers say and subject to the market conditions,” the DMO director general
told Reuters by phone.

 

Nigeria could also look at a possible syndicated loan as an alternative,
Oniha said, adding that the issue is part of a $5.5 billion fund raising
program approved by parliament last year.

 

Nigeria has said it plans to refinance $3 billion worth of a local treasury
bill portfolio of 2.7 trillion naira ($8.9 bln).

 

In November, Nigeria sold $3 billion in Eurobonds, part of which it used to
fund its 2017 budget, and then paid off 198 billion naira in treasury bills.

 

Oniha said local debt yields have started to fall after it paid off the
bills in December, though debt was still attractive especially to foreign
funds looking at emerging market bonds.

 

“The reason JP Morgan took us out of the index was liquidity in the FX
market. Now there’s an investor window where activities have picked up,
that’s a good reason to try to get back in,” Oniha said.

 

Nigeria plans to raise $2.8 billion in new offshore loans as part of its
2018 budget. Oniha said she could tap capital markets or concessionary loans
from the World Bank. But the budget has to be approved by lawmakers before
funding options can be considered.

 

 

 

Nigeria's 9mobile takeover looms as advisers evaluate bids: sources

LAGOS (Reuters) - Barclays Africa is examining takeover bids from five
prospective buyers for Nigeria’s debt-laden 9mobile, two banking sources
said, although a deal may take a few months as it will involve restructuring
the company’s debt after a default last year.

 

Barclays Africa, appointed by Nigerian banks to try to find new investors
for 9mobile, will make a recommendation to the telecom company later.

 

“This is not a simple bid. Where there’s a restructuring ... investors would
state conditions and negotiate what haircut (losses) if any, in respect to
trade and financial creditors,” one of the sources told Reuters.

 

“Time to complete the deal will depend on how quickly advisers analyse the
bids and make recommendations to 9mobile.”

 

Previously known as Etisalat Nigeria, 9mobile took out a $1.2 billion
syndicated loan from a group of 13 local banks in 2013 but struggled to make
repayments last year, forcing its lenders to step in.

 

The central bank then intervened to stop creditors from putting it into
receivership, leading to a change in its board and management, as well as
its new company name.

 

The crisis forced parent company Etisalat to terminate its management
agreement with the Nigerian business and surrender its 45 percent stake to a
trustee after the central bank intervention.

 

Another source said 9mobile’s board and its advisers, regulators and lenders
witnessed the bid opening.

 

“There was screening of a large number of bidders which was narrowed down to
five. They were given access to the management and site visits,” the second
source said, without naming the bidders.

 

Since its debt problems came to light, 9mobile, the country’s fourth-biggest
operator, has rapidly lost subscribers. In October its users numbered 17.1
million, giving it a 12.2 percent market share, down from 20 million earlier
last year, the telecoms regulator said.

 

South Africa’s MTN, the market leader, has a 36.1 percent share of the
market in Nigeria.

 

 

 

South African rand firmer, stocks set to open higher

JOHANNESBURG (Reuters) - South Africa’s rand firmed against the dollar in
early trade on Friday, holding at its best levels since mid-2015, as
expectations the new leader of the ruling ANC would rejuvenate the economy
lifted sentiment.

 

At 0643 GMT, the rand traded at 11.9000 per dollar, 0.19 percent firmer than
its New York close on Thursday.

 

The rand has surged since Deputy President 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, who has promised to fight corruption and boost economic growth,
told a news conference in Davos on Thursday that investors had warmed to the
changes that the South African delegation had highlighted in the country.

 

Stocks were set to open higher at 0700 GMT, with the JSE securities
exchange’s Top-40 futures index up 0.3 percent.

 

In fixed income, the yield on the benchmark government bond was up 0.5 basis
points to 8.43 percent.

 

 

 

South Africa's RBCT says 2017 coal exports at record high

RICHARDS BAY, South Africa (Reuters) - South Africa’s Richards Bay Coal
Terminal (RBCT) said on Friday 2017 coal exports surged to a record high of
76.47 million tonnes from 72.6 million tonnes in 2016.

 

RBCT, Africa’s largest coal export facility, said it aimed to export at
least 77 million tonnes this year.

 

 

 

Gold heads for weekly gain on softer dollar despite Trump comments

(Reuters) - Gold prices edged up on Friday, after falling from 1-1/2-year
highs in the previous session, as the dollar remained weak despite U.S.
President Donald Trump backing a stronger currency.

 

Spot gold rose 0.3 percent to $1,351.40 per ounce at 0333 GMT. The metal has
gained 1.5 percent so far this week.

 

Spot gold hit 1,366.07 on Thursday, highest since Aug. 3, 2016, reversing
gains after Trump told CNBC in Davos, Switzerland, that he wants to see a
strong dollar.

 

U.S. gold futures were down 0.9 percent at $1,351.10 per ounce.

 

Trump’s comment contradicted comments made by Treasury Secretary Steven
Mnuchin a day earlier.

 

The dollar weakness is continuing to support gold prices, helping to hold
them steady despite Trump’s comments, said Peter Fung, head of dealing at
Wing Fung Precious Metals in Hong Kong.

 

“There is some very good support for gold on the downside around $1,340 and
a resistance around $1,360,” he said.

 

The dollar index, a measure of the greenback against a basket of currencies,
hit its weakest since December 2014 at 88.438 on Thursday. It was last down
0.3 percent at 89.154. [USD/]

 

“While catching short-term speculators off guard, the gold price retracement
will not threaten long-term positions whose view are cemented around a
probable equity market correction and an extension of the U.S. dollar
downtrend,” Stephen Innes, APAC trading head at OANDA said.

 

Gold could break above $1,500 an ounce this year for the first time since
its 2013 crash, GFMS analysts at Thomson Reuters said on Thursday, with the
risk of a drop in surging equities and political instability boosting its
appeal as a safe investment haven.

 

Asian stocks edged back from record highs on Friday. [MKTS/GLOB]

 

The break above $1,330 has given fuel to gold’s rally and the first target
of this movement could be seen at $1,375, ActivTrades chief analyst Carlo
Alberto de Casa said.

 

“If the gold price jumps above this level, the rally could continue with
targets at $1,390 and potentially at $1,415 ... We will have a negative
signal only if prices fall below $1,295-$1,300,” Alberto de Casa said.

 

Spot silver rose 0.8 percent to $17.43. It touched its highest in more than
four months at $17.69 on Thursday.

 

Platinum edged up 0.2 percent to $1,012.70. Prices hit their highest since
February 2017 on Thursday at $1,027.60.

 

Palladium fell 0.1 percent to $1,094.50. Palladium was on track for its
second straight weekly loss, dropping nearly 1 percent so far this week.

 

 

 

South Africa's PSA union, PIC to pursue class action against Steinhoff

CAPE TOWN (Reuters) - South Africa civil servants union, PSA, said on
Thursday it had teamed up with Steinhoff’s second-largest shareholder, the
PIC, to pursue a class action lawsuit to recoup around 17 billion rand
($1.43 billion) of pensioners’ money wiped out in the wake an accounting
scandal.

 

Steinhoff, owner of more than 40 retail brands including Poundland in
Britain, admitted “accounting irregularities” last month, triggering an 85
percent share slide.

 

($1 = 11.8792 rand)

 

 

 

Mauritius business confidence jumps to its highest in Q4 2017

PORT LOUIS (Reuters) - Business confidence on the Indian Ocean island of
Mauritius rose to a record high in the last quarter of 2017, a survey of
leading private companies showed on Thursday.

 

The Mauritius Chamber of Commerce and Industry’s quarterly confidence index
climbed 8.5 percent to 123 points. The index increased 26.2 percent last
year.

 

“These successive increases (in the index) indicate a positive optimism of
entrepreneurs, who consider that globally the economic situation is
improving since the last quarter of 2016,” the Chamber of Commerce and
Industry said in a statement.

 

Mauritius’ economy grew by an estimated 3.9 percent in 2017, slightly up
from 3.8 percent in 2016. The statistics office said the economy was likely
to expand by 4 percent this year, driven by the construction sector.

 

With a population of 1.3 million, Mauritius’ $14 billion-a-year economy,
relies on services like tourism and financial services. Its main trade
partners include India and Britain.

 

($1 = 32.2500 Mauritius rupees)

 

 

 

South Africa's December producer inflation rises to 5.2 pct year/year

JOHANNESBURG (Reuters) - South Africa’s producer price inflation (PPI)
quickened to 5.2 percent year-on-year in December compared with 5.1 percent
in November, the statistics agency said on Thursday.

 

On a month-on-month basis, December PPI rose to 0.6 percent from 0.5 percent
in November, Statistics South Africa said.

 

Dec Dec Nov Nov

 

y/y m/m y/y m/m

 

Final manufactured goods 5.2 0.6 5.1 0.5

 

Intermediate manufactured goods 3.2 -0.4 4.2 0.9

 

Electricity and water 3.3 -1.8 4.0 0.2

 

Mining and quarrying 6.1 -2.7 11.3 -0.7

 

Agriculture, forestry and fishing 6.4 1.2 6.9 3.8

 

 

 

Carney calls for 'deeper relationship' with Europe

A "deeper relationship" with Europe will benefit the UK economy, the
governor of the Bank of England said.

 

Mark Carney's comments follow claims by chancellor Philip Hammond that the
UK and EU economies will only move "very modestly" apart after Brexit.

 

Mr Carey said that while global growth had accelerated, the UK was suffering
a "Brexit effect" in the short term.

 

"The economy is doing not as well as we expected it to prior to the
referendum," he told the BBC in Davos.

 

That meant the UK economy is now 1% smaller than the Bank had predicted
before the EU vote.

 

"What it works out to is tens of billions of pounds lower economic
activity," Mr Carney told Radio 4's Today programme. "Investment has picked
up a bit but it hasn't picked up anyways to the same extent as
internationally."

 

However, the governor said that as "greater clarity" about the shape of
Brexit emerged this year, there would be a "conscious re-coupling" of the UK
economy with the global economy.

 

"The deeper the relationship with Europe, the deeper the relationship with
the rest of the world... the better it's going to be over time for the UK
economy," he added.

 

Mr Hammond said the EU and UK economies were already "completely
interconnected and aligned".--BBC

 

 

 

Goldman Sachs boss warns on irreversible Brexit plans

The boss of Goldman Sachs has warned that the US bank's contingency planning
is reaching the point of no return.

 

The bank's chief executive, Lloyd Blankfein, told the BBC some steps already
taken to deal with Brexit were now very unlikely to be reversed.

 

At some point the steps are "not going to be undone", Mr Blankfein said.

 

For example, some contracts between Goldman Sachs UK and EU clients have
been redrawn, or "repapered", to apply to Goldman Sachs Germany.

 

"Once we start to repaper - which is very cumbersome because it involves
lots of lawyers on both sides and takes months - once we start that are we
going to go back? Probably not," Mr Blankfein told the BBC at the World
Economic Forum in Davos.

 

"We've already done some and we have told our clients that more is coming,"
he said.

 

'Can't be undone'

When asked exactly when the final point of no return would arrive, he said
it was not a binary thing but a gradual process.

 

"Every month, incremental steps are taken and at some point we do things
that are not going to be undone."

 

The company has already taken 10 floors of a building in Frankfurt while
still building a new HQ in London.

 

Mr Blankfein has taken to Twitter to send a message to the UK government
that first, he may not fill the UK headquarters and second, how much he
likes Frankfurt.

 

He added a little more context today. "Look, I like Frankfurt because I have
to like Frankfurt," he said.

 

The Goldman boss' report on his lunchtime meeting with the prime minister in
Davos was interesting. First, he said he was told there was no chance of a
second referendum.

 

That's interesting because it reflects the widely held belief in Davos that
there is still a scenario in which the UK doesn't leave the EU.

 

"I asked whether there was anything that might come up that might make
people reconsider this awesome and irreversible decision - but I'm told
that's not on the cards," Mr Blankfein said.

 

Second, he was told he may have to trust the government there will be a
transition period, during which the status quo holds before the terms of
that transition have been agreed. A position he didn't seem very happy
about.

 

"We may have to rely on the promise of a transition, suspend our march [out
of the UK] and yet not be entirely sure it gets accomplished. So we may have
to make a leap of faith - which is a little dangerous for us," he said.

 

Goldman Sachs does not expose itself to risk like that - particularly when
dealing with a government which Mr Blankfein describes as "feeling its way"
through these negotiations.

 

The government, for its part, said both the EU and UK are in agreement to "a
time-limited implementation period which would be mutually beneficial".

 

During this period, the UK and the EU should continue to have access to one
another's markets on current terms, a government spokesman said.

 

The only thing Lloyd Blankfein seemed confident about is that whatever
happens, a bank that has built a formidable reputation for execution - in
English that means getting important stuff done right - will be ready for 1
April 2019, even if the UK government isn't.-BBC

 

 

 

Walmart signs Japan online grocery deal with Rakuten

US retail giant Walmart will team up with Japan's Rakuten to launch a new
online grocery delivery service.

 

Customers will place orders through Rakuten, which will then be fulfilled by
the joint venture.

 

The operation - to launch later this year - will replace Walmart's existing
online grocery delivery service in Japan.

 

As part of the deal, Rakuten subsidiary Kobo will sell e-books, audiobooks
and e-readers through US Walmart stores.

 

The launch of the new e-commerce business is the US firm's latest attempt to
crack a competitive overseas market, by teaming up with a popular local
partner.

 

In 2016, it applied a similar strategy in China, selling its own website to
the country's second largest online retailer JD.com in exchange for a 5%
stake in the company.

 

Rakuten is Japan's largest e-commerce company, with around 14,000 employees.

 

It has expanded its business internationally through a string of
acquisitions, including online retail, financial technology and
telecommunications companies.

 

Walmart hopes to tap into Rakuten's expertise in e-commerce as well as its
big data and artificial intelligence capabilities.

 

The partnership will also allow Walmart to sell a catalogue of six million
e-books and audiobooks, giving the retailer a foothold in a market that has
been dominated by rival Amazon.

 

Customers of the new venture - to be called Rakuten Seiyu Netsuper - will be
able to accumulate points on Rakuten's loyalty program, which can be used on
any of Rakuten's services.

 

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


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for guideline purposes only and sourced from third parties.

 


 

 


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