Major International Business Headlines Brief::: 24 July 2018

Tue Jul 24 10:21:19 CAT 2018

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Major International Business Headlines Brief::: 24 July 2018

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

*  BRICS bank approves $600 mln loans for South African, Chinese projects

*  South Africa's Vodacom Q1 revenue boosted by increase in customers

*  Kumba Iron Ore brings in targeted dividend policy

*  Petra shares drop after it cuts 2019 diamond production forecast

*  Amplats reports jump in H1 earnings, buys Glencore's stake in Mototolo platinum mine

*  Algeria's annual inflation rises to 4.6 pct in June

*  Ghana central bank keeps policy rate at 17 pct

*  Alphabet surprises as ad sales beat forecasts

*  Fiat's seriously ill boss will be a tough act to follow

*  China moves to support economy amid trade tensions

*  Tesla shares hit by report it is seeking refunds

*  UK ramps up powers to block foreign takeover deals

*  New York Daily News axes half of its staff

*  Brexit: Jeremy Hunt warns EU of 'no deal by accident'

 <mailto:info at bulls.co.zw> 

BRICS bank approves $600 mln loans for South African, Chinese projects

JOHANNESBURG (Reuters) - The New Development Bank, set up by the BRICS group of emerging economies, has approved loans of $300 million for energy projects in South Africa and $300 million for a transportation project in China.

South Africa, which will host a BRICS summit later this week in Johannesburg, is trying to diversify its energy mix to reduce its reliance on heavily polluting coal-fired power plants.

It has launched several bidding rounds for billions of dollars of renewable energy deals in recent years, with the latest expected to open later this year.

The BRICS development bank said in a statement that its $300 million loan to South Africa would be channelled via the Development Bank of Southern Africa and would focus on projects which reduce carbon dioxide emissions and boost energy efficiency.

Its $300 million loan to China is for a new metro line in the city of Luoyang. With the two projects, the bank’s portfolio of loans stands at more than $5.7 billion.

The BRICS grouping comprises Brazil, Russia, India, China and South Africa.

Russia said this month that it was in talks with the New Development Bank about borrowing more than $1 billion for infrastructure projects.

 <mailto:info at bulls.co.zw> 

South Africa's Vodacom Q1 revenue boosted by increase in customers

JOHANNESBURG (Reuters) - Vodacom Group, South Africa’s biggest mobile phone operator by market value, reported on Tuesday a 4.2 percent rise in group revenue for the first quarter, boosted by service revenue growth in its home market and a increase in customers.

The firm said reported group revenue rose to 21.55 billion rand ($1.60 billion) for the quarter ended 30 June 2018 compared with 20.65 billion rand ($1.53 billion) in the previous reporting period.

“In South Africa, despite a tougher economic environment, we grew service revenue by 4.9 percent, supported by customer growth of 9.5 percent to reach 43.1 million customers,” said Chief Executive Shameel Joosub in a statement.

Vodacom added 2.5 million customers during the quarter, with 1.5 million from South Africa and 1 million from its international operations.

($1 = 13.4804 rand)

Kumba Iron Ore brings in targeted dividend policy

JOHANNESBURG (Reuters) - Kumba Iron Ore on Tuesday reported a sharp drop in interim earnings, hurt by weak prices and a stronger rand, but introduced a targeted dividend ratio policy of 50 to 75 percent of headline earnings.

Investors across the mining sector have been hungry for dividends after years of depressed prices and low returns from a capital-intensive industry that requires long-term investment.

“The new dividend policy will target a base dividend range of between 50 percent and 75 percent of headline earnings,” Kumba, a unit of Anglo American, said in a statement.

“While we will prioritise shareholder returns in allocating capital, our aim is to maintain a flexible capital structure ... as well as to ensure an appropriate level of capital is allocated to life extension projects.”

Kumba’s dividend yield is already high in relation to its peers at 10.65 percent compared with 3.95 percent for Johannesburg’s Mining Index.

The company posted headline earnings of almost 3 billion rand ($222 million) versus 4.6 billion rand in the first six months of last year while paying out a dividend of 14.51 rand per share compared to 15.91 rand last year.

($1 = 13.4868 rand)

Petra shares drop after it cuts 2019 diamond production forecast

(Reuters) - Petra Diamonds Ltd forecast lower-than-estimated production for 2019 after reporting 2018 output at the bottom end of its previously guided range, sending its shares down more than 8 percent on Monday.

The miner said it expects to produce 4.6 million to 4.8 million carats in 2019, well below the 5.0-5.3 million carats it forecast in July last year.

The company, which has been hit by production delays, a confiscated consignment of diamonds in Tanzania and a strong South African rand, warned in May that production would be lower than expected, but did not provide a number.

The forecast spooked investors, overshadowing positive news that the company had managed to keep its debt in check after years of heavy spending.

Petra shares fell to their lowest in more than 2-1/2 years in early trade before recovering a bit to trade down 4.2 percent at 47.93 pence at 0736 GMT.

Its net debt fell to $436.1 million as of June 30 from $513.9 million at the same time last year, the company said.

Total production rose 15 percent to 4.6 million carats, helped by the ongoing ramp-up of its new Cullinan plant in South Africa, but was still at the lower end of its forecast of 4.6-4.7 million carats.

Production at Cullinan rose 74 percent in the full year, but FinnCap analyst Martin Potts expressed concern on the quality and price of diamonds from the mine.

“Overall price per carat was a long way below expectation as the mine has been recovering less of the higher value stones,” Potts said.

“It suggests that Cullinan may have a problem and therefore may be less valuable as an asset than had previously been thought.”

The company, which operates four mines in South Africa and one in Tanzania, posted a 21 percent rise in revenue to $576.4 million for the twelve months to June 30 from $477 million a year earlier on higher diamond prices and production.

It said it saw a 2 percent rise in rough diamond prices on a like-for-like basis during the year, adding that it expects the diamond market to remain healthy.

The company’s business has been weighed by the recent strengthening of the South African rand as well as the confiscation of a consignment of diamonds by the Tanzanian government last year.

Petra said on Monday there was no update regarding its confiscated diamonds in Tanzania.

Amplats reports jump in H1 earnings, buys Glencore's stake in Mototolo platinum mine

JOHANNESBURG (Reuters) - Anglo American Platinum posted a 350 percent rise in interim profits on Monday and kept the dividend tap flowing as it reaps the benefits of a pivot to mechanised mining that has lifted productivity and cut costs.

The world’s largest platinum producer also announced that it had acquired Glencore’s 39 percent stake in Mototolo, a mechanised platinum mine on the eastern limb of South Africa’s platinum belt.

“The acquisition of Glencore’s stake in the Mototolo JV increases Amplats’ interest in a mechanised, low-cost, high quality resource,” Chief Executive Chris Griffith said in a statement.

The company, a unit of Anglo American unit, reported headline earnings per share of 1,282 cents, in line with its guidance.

It declared an interim dividend of 374 cents per share. In February, the company announced its first dividend in seven years.

Algeria's annual inflation rises to 4.6 pct in June

ALGIERS (Reuters) - Algeria’s annual inflation rose to 4.6 percent in June from 4.4 percent in May, National Statistics Bureau data showed on Monday.

On a monthly basis, the consumer price index increased 1.1 percent.

Year-on-year costs for vegetables and poultry rose 6.6 percent and 9.6 percent respectively, while the price of eggs declined 14.4 percent.

Ghana central bank keeps policy rate at 17 pct

ACCRA (Reuters) - Ghana’s central bank kept its benchmark interest rate unchanged at 17 percent as expected on Monday, mindful of the possible impact on inflation of pressure on emerging economies, governor Ernest Addison said.

The first hold this year also helps cushion any spillover effect from a potential trade war between the U.S and China, Addison told reporters in Accra.

Annualized inflation rose for a second time in a row to 10 percent in June while the local cedi currency, which had been fairly stable in the first quarter, depreciated around 6 pct in the last two months, Addison said.

“Global conditions are characterized by geopolitical tensions and uncertainties in the external environment ... There are also concerns about further tightening of US monetary policy with adverse implications on capital flows and currency markets for emerging market and frontier economies,” he said.

“Given the circumstances, especially with regards to the global outlook, the committee decided to maintain the monetary policy rate at 17 percent while closely monitoring developments in the near-term,” he added.

Monday’s hold was expected and it would “calm the markets”, banking analyst Otuo Acheampong told Reuters.

Yet the local currency remained under pressure on Monday at 4.81 to the dollar, down from last week’s 4.79, Reuters data showed.

The major commodity exporter’s public debt amounted to $34.9 billion, representing 63.8 percent of GDP at the end of May, while its net international reserves stood at $4.15 billion at the end of June, representing 2.2 months of import cover.

Alphabet surprises as ad sales beat forecasts

Shares in Alphabet, Google's parent company, jumped as much as 5% in after-hours trading after the firm reported stronger ad sales than expected.

Alphabet earned $32.7bn in revenue in the three months to the end of June, up 26% from the same period last year.

But the record €4.34bn EU fine over over Google's Android mobile operating system knocked $5bn off its profits.

Alphabet reported net income of $3.2bn. Without the fine, it would have been almost $8.3bn, the firm said.

The EU said Google had used the mobile operating system to illegally "cement its dominant position" in search.

Alphabet is appealing the decision, which drove a 36% increase in costs in the quarter.

On a call with financial analysts, chief executive Sundar Pichai said it was too early to say how the changes requested by regulators would affect the firm's business over the long term.

"There is more work to be done and I think it will become clearer as we go along," he said.

Mr Pichai also said it was too early to say what effect Europe's new privacy law - the General Data Protection Regulation (GDPR) - is having.

On the face of it, the European Commission's massive fine hasn't really hurt Alphabet - at least not in the eyes of investors.

But it's important to remember that simply paying the fine - if Google loses its appeal - doesn't make the problem go away.

The European Commission has demanded big changes to the Android platform, changes that once implemented could impact Google's huge gains in search revenues.

The strong performance in this part of the business is what's keeping investors happy despite the fine - but those smiles might crack once the full extent of Europe's ruling is understood.

The fine is just the beginning - it's the changes to Google's vast mobile empire that could cause real harm to the business model.

"I'm confident that we can find a way to make sure Android is available at scale to users everywhere," Google's chief executive, Sundar Pichai, told investors.

It may be his biggest challenge yet.

Digital ad market

Alphabet, which relies on advertising for the bulk of its business, is facing an increasingly competitive market, as firms such as Amazon make inroads.

In March, the research firm eMarketer estimated that Google would capture about 37% of digital ad spending in the US this year, down from almost 39% in 2017.

Despite the competition, Alphabet said pressure from traffic acquisition costs, which reflect what it pays other companies to drive users to its sites, had lessened.

As a share of ad revenue, those costs fell from 23% to 22%.

Alphabet has also branched out into a range of other areas, including cloud computing, YouTube and driverless cars.

The firm said cloud computing and YouTube are enjoying growth.

Its Other Bets segment, which includes companies like the driverless car firm Waymo, reported a quarterly operating loss of $732m, up from $633m last year.--BBC

Fiat's seriously ill boss will be a tough act to follow

Evidence of the uncertainty facing carmaker Fiat-Chrysler Automobiles (FCA) came fast on Monday.

News over the weekend that the driving force behind FCA's growth, Sergio Marchionne, would not return to work after surgery sent the shares down 5%.

It was soon followed by reports that one of the unsuccessful candidates to replace Mr Marchionne, Europe chief Alfredo Altavilla, had resigned.

The new chief is Briton Mike Manley - and he has a tough act to follow.

Mr Marchionne, 66, is in intensive care in Zurich after suffering what the company said were "massive" complications from shoulder surgery.

He was due to step aside next April anyway, but the health crisis has brought to a head FCA's succession planning and the commitment to a strategy overhaul announced earlier this year.

Mr Marchionne, famous for his signature black jumpers, sharp - but often mischievous - tongue, and workaholic lifestyle, has effectively saved two carmakers from bankruptcy - Fiat and Chrysler.

He also managed to spin-off Fiat's Ferrari in a stock market listing - something many people had talked about, but not achieved.

"Marchionne is good at execution, strategy and gamesmanship," said Evercore analyst George Galliers. "It remains to be seen whether Mr Manley is that sort of visionary".

A accountant and lawyer by training, Mr Marchionne joined Fiat in 2004 after the death of its patriarch Gianni Agnelli.

The Agnelli family were impressed by Mr Marchionne's turnaround of the Swiss company SGS and were looking for someone to modernise the ailing Fiat empire.

Fiat was Italy's foremost industrial group, and the new chief trod a fine line between the demands of politicians and union leaders as he began a root and branch reform.

In 2009, he merged Fiat with another struggling business - America's number three carmaker Chrysler, and hived off its tractor making arm in 2011 to create CNH Industrial. Ferrari was floated in 2016.

By this year Mr Marchionne had managed to wipe out FCA's near $13bn (£10bn) debt pile, something he described as a "healing" process for two companies that for so long were associated with failure.

FCA's chairman John Elkann, 42, grandson of Gianni Agnelli and his chosen heir, said this weekend that Mr Marchionne "taught us to have the courage to challenge the status quo, to break with convention and go beyond the tried and tested".

The job of maintaining that momentum now falls to Mr Manley, 54, previously head of FCA's Jeep brand. He will have to make good on the company's big push into all-electric and hybrid vehicles, and execute a new strategy that includes doubling operating profits by 2022 and turning Jeep into a global brand.

'Concerns will build'

Jeep is arguably the single most important arm within FCA. The division has played an integral role in boosting the company's earnings growth, said Mr Galliers, and is key to the growth strategy announced earlier this year.

The number of Jeeps sold in 2013 was about 730,000, against an expected 1.9 million for this year, and 3.5 million by 2022.

That success explains why Mr Manley got the top job, say analysts.

Although there is uncertainty, Mr Galliers pointed out that FCA's succession had effectively been brought forward by about seven months. "We're in the same position we would be in early next year," he said.

But doubts persist. Mr Manley "is a car guy, and to manage Fiat Chrysler you need more than just a car guy," said Ferdinand Dudenhöffer, director of the Center for Automotive Research, in Germany.

And Max Warburton, analyst at Bernstein said: "The downside may be modest, at least in the next 12 months. But long-term concerns will build - Marchionne ran FCA in a command and control style, with constant fire fighting measures."

In-tray

Despite the plaudits for Mr Marchionne - and he unquestionably leaves FCA in a healthier state - there was criticism about delayed product launches and a failure to revive some brands, such as Alfa Romeo, quickly enough.

Also, profitability in Europe remains sluggish, and FCA's competitors are ahead of the game in breaking into the huge Chinese market.

Mr Marchionne had hoped that the costs of FCA's push into electric, hybrid and self-driving cars could be shared via an industry merger. But his preferred partner, General Motors, rejected his advances.

These are all issues facing Mr Manley, although FCA was quick to point out when it announced his appointment that he would execute the new strategy to ensure a "strong and independent" future.

Add to this mix the concerns about a trade war, competition, and the unrelenting crackdown by authorities on emissions, and Mr Manley's in-tray is looking full.

Analysts at Barclays said in a research note: "Sergio's deal-making and political skills will be missed as FCA faces trade-tariff uncertainty... and a constantly shifting landscape in Latin America," where FCA has big plans to expand Jeep.

One of Mr Manley's immediate tasks will be to find a new head of its operations in Europe, Africa and the Middle East. Mr Altavilla's resignation has still to be officially confirmed, although there are widespread reports on both sides of the Atlantic.

Along with Mr Manley and chief financial officer Richard Palmer, the long-serving Mr Altavilla was a candidate for the top job. It underlines that a changing of guard at the top of FCA will have management ramifications across the group.

FCA's group executive council was meeting at the company's Italian base in Turin on Monday, chaired for the first time by Mr Manley. There is a lot to discuss - starting with how to stem any further management turmoil after the resignation of Mr Altavilla, and who replaces Mr Manley in the key role at Jeep.--BBC

China moves to support economy amid trade tensions

China is trying to support the economy as trade tensions escalate and risk spilling over into currency markets.

The government will focus on introducing deeper tax cuts and step up efforts to issue special bonds for local government infrastructure plans.

It comes as a trade row with the US is escalating and as annual Chinese growth slowed slightly in the second quarter.

The US last week threatened to tax all of China's imports and accused it of currency manipulation.

China's economy slowed slightly in the second quarter to an annual pace of 6.7% amid government efforts to curb debt.

Analysts expect greater challenges ahead as US tariffs take their toll. Against the backdrop, there are signs China is moving to buffer the economy against potential negative shocks.

"The government will issue targeted and well-timed regulations in the face of external uncertainties and ensure the economy performs within a reasonable range," according to a statement released after the State Council's executive meeting on 23 July.

While the measures were largely incremental, they signalled a shift towards looser fiscal policy, analysts said.

"My impression is that they are not bringing out the big guns yet but it clearly is a shift in the stance," Julian Evans-Pritchard, senior China economist at Capital Economics said.

He said until recently China has relied on monetary policy tools to support the economy.

"We are just entering the start of a slowdown in China so there is every reason to think there are going to be more (fiscal easing measures)."

The announcement also comes as China's central bank injected some $74bn into the banking system - its largest ever injection using its so-called medium-term lending facility, according to media reports.

"It seems more of a continuation of the gradual easing and pushing down of borrowing costs," Mr Evans-Pritchard added.

The US and China are stuck in a tit-for-tat trade war which could see the US put tariffs on all $500bn of Chinese imports.

Given the US buys nearly four times as much from China as it sells to them, there are concerns China could retaliate in other ways and the row could taint other aspect of US-China relations.

Some fear this may already be happening. US President Donald Trump last week accused China and the Europe Union of "manipulating their currencies and interest rates lower" on Twitter.

China rejected the accusation, saying it had no intention of spurring exports through competitive devaluation of its currency.

"The yuan's exchange rate is mainly determined by market supply and demand," a spokesman for the foreign ministry told a press briefing. "It floats in both ways, which means there are ups and downs."--BBC

Tesla shares hit by report it is seeking refunds

Tesla shares have fallen following a report that it is seeking refunds from some suppliers.

The electric carmaker, which is headed by Elon Musk, told suppliers the refunds were critical to its ability to stay in business, according to the Wall Street Journal.

The refund request applies to money that Tesla has paid to some suppliers since 2016, according to the Journal.

Tesla said the appeal was a standard part of procurement negotiations.

In a statement released Monday, the firm said it had asked fewer than 10 companies to discuss costs related to projects that dated to 2016.

"The remainder of our discussions with suppliers are entirely focused on future parts price and design or process changes that will help us lower fundamental costs," it said.

Initially, Tesla shares dropped by more than 5% on Monday morning as investors responded to the report, although they recovered some ground later.

Production milestone

Tesla is pushing to improve its financial position after spending heavily to boost production of its latest car, the Model 3.

It has said it is looking to reduce spending on capital projects. The firm also announced it would cut about 9% of its workforce.

Earlier this month, Tesla also said it had finally hit its target of making 5,000 Model 3 cars in a week at the end of June - a milestone that could mean it starts receiving payments to alleviate its cash crunch.

Is Tesla heading for trouble?

Chief executive Elon Musk has dismissed worries that the firm will run out of cash and need to raise more money.

Instead, he has told investors that he expects the firm to turn a profit in the third quarter of this year.--BBC

UK ramps up powers to block foreign takeover deals

Government intervention in foreign takeovers of UK firms will massively increase under proposed new powers.

The government expects to review 50 foreign takeovers a year over national security. In the last two years it has reviewed just one takeover a year.

Previously the government could only review deals where the target company had annual revenues of over £70m.

The proposed new legislation would abolish that threshold - entirely and permanently.

It marks a new era in government oversight of corporate activity deemed likely to the threaten national interests.

The government expects that the new thresholds will result in 200 notifications of potential national security concerns being raised when either whole companies or sensitive assets are being acquired.

Of that 200, ministers and civil servants expect half - or 100 - will need more careful analysis, and of that 100, it expects to "call in" fifty for detailed scrutiny.

That would be a fifty-fold increase on current levels.

The Department for Business acknowledges it will require more resources although declined to give more detail on exactly how many people or how much money would be needed.

The existing law on takeovers is derived from the Enterprise Act of 2002 which stipulated that takeovers could only be reviewed if they were thought to threaten media plurality, competition or national security.

These proposals aim only at national security and seem particularly focused on the emergence of new cyber threats.

The previous threshold of £70m in turnover was designed to capture sales of big ticket sensitive items like nuclear power plants, airports and defence contractors.

That threshold was temporarily lowered to £1m earlier this year.

The abandoning of the turnover threshold entirely illustrates the threat perceived from much smaller companies with special expertise in the new front in on-line warfare.

The UK has operated a much looser approach to sensitive takeovers than some of its allies.

For example, the US has continually rebuffed acquisitions from Chinese companies like telecoms giant Huawei which bought into the UK over the last 20 years.

The Business Secretary Greg Clark will say on Tuesday that the UK remains an "open economy" but changes in technology and moves by other countries including Germany, France and Australia to tighten their defences meant the UK now also needs to adapt to a new breed of threat to national security.--BBC

New York Daily News axes half of its staff

The New York Daily News, one of the city's two tabloid papers, is halving its editorial staff, the latest sign of trouble in the local news business.

The cuts will leave the newsroom with about 40 people, according to former employees.

They come less than a year after the paper was bought by Tronc, which has a reputation for low newsroom investment.

The New York Daily News started in 1919 and has won 11 Pulitzer Prizes, one of them last year.

Tronc faced backlash from staff at the Los Angeles Times, who formed a union and cast a spotlight on the cuts at Tronc-owned publications, despite high compensation going to top executives and other insiders.

Last year, Tronc said it was paying Merrick Ventures, a private equity firm led by Tronc's biggest shareholder, $5m (£3.8m) a year for "management expertise and technical services".

The newspaper company, which also owns the Chicago Tribune and Baltimore Sun, subsequently sold the Los Angeles Times.

Tronc bought the New York Daily News, which favours the punchy headlines common in British tabloids, for $1 last year.

A memo on Monday to New York Daily News staff said the smaller newsroom would in future focus on breaking news, "especially in areas of crime, civil justice and public responsibility".

Top editors at the paper have lost their jobs as part of the cuts, including editor-in-chief Jim Rich and managing editor Kristen Lee.--BBC

Brexit: Jeremy Hunt warns EU of 'no deal by accident'

Jeremy Hunt has warned that without a "change in approach from the EU negotiators", there is now a "very real risk of a Brexit no deal by accident".

The foreign secretary said "many" in the EU believed they just had to "wait long enough and Britain will blink" but "that's not going to happen".

He warned of "unintended geopolitical consequences" with just Vladimir Putin "rejoicing" if there was no deal.

Germany's foreign minister says it wants a deal "not a disorderly Brexit".

Brexit deal 'can be done by October'

Barnier questions May's Brexit plan

What would a 'no deal' Brexit look like?

Heiko Maas, who held talks with Mr Hunt in Berlin, said: "We know that everyone has to make mutual concessions to get this deal.

"We know that the European Union has its interests, overall interests, so not just individual member-states but EU institutions.

"And of course Britain doesn't want to unnecessarily complicate framework conditions for economic activity, but also security questions, or our foreign policy cooperation.

"It becomes more difficult anyway as a non-member of the European Union.

"So, we've agreed we will prepare bilaterally for the time after Brexit."

Mr Hunt said a no deal would be "challenging" but the UK would still "thrive economically".

The UK is due to leave the European Union on 29 March 2019, but the two sides have yet to agree how trade will work afterwards.

Mr Hunt's trip to Germany comes at the start of a concerted push by British government ministers to sell the UK's latest Brexit blueprint across the Continent.

Prime Minister Theresa May will meet the Austrian chancellor and Czech and Estonian prime ministers this week, saying both sides know "the clock is ticking" on negotiations.

The EU and the UK want a deal in place by October.

Speaking to workers at a factory in Newcastle, Mrs May said she was working to get a deal that MPs would support when it comes before Parliament - but was also "stepping up" government preparations for no deal being reached.

She was asked about Treasury forecasts of an economic hit to the North East of England after Brexit - in response she said the government wanted "frictionless" trade at borders and also promised investment in transport infrastructure and skills.

And asked how she unwinds from the "world's most stressful job", she said she enjoyed walking, cooking and watching US crime TV series NCIS.

The government's plan has been set out in a White Paper which proposes close ties in some areas, such as the trade in goods, but will end free movement of people and the direct jurisdiction of the European Court of Justice in the UK.

Critics at Westminster say it is an unworkable compromise, which would leave the UK governed by the EU in many areas, but with no say in its rules.

The plan sparked two cabinet resignations - former Brexit Secretary David Davis and Foreign Secretary Boris Johnson.

After Parliament rises for the summer recess on Tuesday, Downing Street said the UK negotiating team would be travelling to Brussels while the foreign secretary, chancellor, home secretary, business secretary and the minister for the Cabinet Office will meet counterparts across Europe.

Plans questioned

The EU's chief negotiator, Michel Barnier, questioned on Friday whether UK plans for a common rulebook for goods and agri-foods were practical and said the EU would not run the risk of weakening its single market.

He questioned whether the plans could work without causing extra bureaucracy and said there were "practical problems" about how tariffs would be determined and collected.

New Brexit Secretary Dominic Raab has said a deal could be done by October - but also that making "no deal" preparations such as hiring extra border staff was part of being a "responsible government".

The Times has reported that the head of Amazon in the UK, Doug Gurr, warned of potential "civil unrest" in the event of "no deal" at a meeting with Mr Raab on Friday.

Labour leader Jeremy Corbyn said it seemed the government's priority was preparing for no deal, which would be bad for industry.

"There has to be a serious stepping-up of negotiations to reach an agreement on customs and on trade," he said.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

NicozDiamond

shares delist from the ZSE

06/07/2018

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

 <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.

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