Major International Business Headlines Brief::: 25 July 2018

[Bulls n Bears]

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Major International Business Headlines Brief::: 25 July 2018

 


 

 


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

 


 

 


 

*  Karo launches $4.2 bln Zimbabwe project, has several funding options

*  South African rand strengthens to 1-week high ahead of BRICS

*  Africa's richest man arranges $4.5 bln of financing for oil refinery

*  Nigeria's central bank holds benchmark lending rate at 14 pct

*  Central bank says to start talks with KCB Bank on Imperial Bank sale

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

*  Rwanda signs $300 million in loan deals with China and India

*  Kumba brings in targeted dividend policy, flags South Africa rail issues

*  Lafarge Africa falls to Q2 loss, shares hit 8-year lows

*  Algeria's economic policy may accelerate inflation: IMF

*  US to give farmers $12bn trade war bailout

*  Santander sees growth but UK profits slip

*  Ryanair fleet cuts put 300 jobs at risk

*  Time for a break in Kit Kat trademark case

*  Ivanka Trump closes down her fashion brand

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Karo launches $4.2 bln Zimbabwe project, has several funding options

MHONDORO-NGEZI, Zimbabwe (Reuters) - Zimbabwe’s Karo Mining Holdings has a range of options for securing funding for its $4.2 billion platinum mining venture, a company official said on Tuesday, citing bank finance, equity or money from shareholder Tharisa Plc.

 

Located in the Mhondoro-Ngezi platinum belt, west of Harare, where Impala Platinum Holdings has operations, the project will include a coal mine and power station and should employ 15,000 people when fully implemented.

 

The mining project officially launched on Tuesday will create Zimbabwe’s largest integrated platinum mining and refinery operation. President Emmerson Mnangagwa sees it as a flagship investment that underscores Harare’s readiness to open up to foreign investors following the end of Robert Mugabe’s 38-year rule.

 

Michelle Taylor, Tharisa’s chief operations officer, said Karo would decide on an actual funding model once it completes a feasibility study to quantify the platinum resources next year.

 

She, however, said Karo would replicate Tharisa’s funding model in South Africa, which was made up of bank loans and equity.

 

“We will have many avenues of finance that will be either through project finance, it maybe through third party investors at each of the project level or alternatively it could be further funding from Tharisa as the group company,” Taylor said.

 

Karo Mining is chaired by investor Loucas Pouroulis, the founder of London-listed Tharisa, which has chrome and platinum operations in South Africa’s Bushveld. Tharisa bought a 26.8 percent shareholding in Karo to increase its exposure in Zimbabwe.

 

Under the investment agreement, Karo Mining Holdings will own 50 percent of the platinum company, Karo Platinum, while the remainder will be held by a government-owned investment vehicle.

 

Karo will also own 75 percent of the refining, power generation and coal mining units.

 

Karo’s country manager Josephat Zimba said after discussions with Zimbabwean government, his company would now build a 300 megawatt (MW) solar power plant near its operations instead of a 600 MW coal-fired plant as initially announced.

 

Karo will open its first of four open pit mines in 2020 and at its peak expects to produce 1.4 million ounces of platinum, more than twice Zimbabwe’s current total output. The base and precious metal refineries will have capacity to toll refine another 600,000 ounces.

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


South African rand strengthens to 1-week high ahead of BRICS

JOHANNESBURG (Reuters) - South Africa’s rand extended gains early on Wednesday to its highest levels in a week after Tuesday’s announcement of fresh Chinese investment into the country.

 

At 0656 the rand was trading at 13.2500, marginally stronger than its close of 13.2850 in the previous session.

 

President Cyril Ramaphosa announced that Chinese President Xi Jinping had pledged to investing $14.7 billion dollars during his state visit to the country ahead of a BRICs summit starting today.

 

“The rand has benefited in the wake of the aforementioned headlines, performing admirably despite the prevailing global uncertainty. Possible headlines from the BRICS summit likely to dominate today,” Nedbank analysts said in a note.

 

Leaders from the BRICS group of emerging economies - Brazil,Russia, India, China and South Africa - will meet for three days in Johannesburg for the 10th annual summit.

 

In fixed income, the yield for the benchmark paper due in 2026 was down 4.5 basis points to 8.680 percent.

 

Stocks were set to open lower at 0700 GMT, with the Johannesburg Stock Exchange’s Top-40 futures index down 0.23 percent.

 

 

Africa's richest man arranges $4.5 bln of financing for oil refinery

LAGOS (Reuters) - Africa’s richest man, Aliko Dangote, has arranged more than $4.5 billion in debt financing for his Nigerian oil refinery project and aims to start production in early 2020, he told Reuters.

 

Dangote, who built his fortune in cement, is building the world’s largest single oil refinery with capacity of 650,000 barrels per day (bpd) to help to reduce Nigeria’s dependence on imported petroleum.

 

Despite being a crude oil exporter, Nigeria imports the bulk of its petroleum because of a lack of domestic refining capacity.

 

Lenders would commit about $3.15 billion, with the World Bank’s private sector arm providing $150 million, Dangote said, adding that he was investing more than 60 percent from his own cash flow.

 

Dangote Group has said that Standard Chartered Bank was arranging funds for the project.

 

“We will end up spending between $12 billion to $14 billion. The funding is going to come through equity, commercial bank loans, export credit agencies and developmental banks,” Dangote said in an interview in Lagos on Tuesday.

 

“Hopefully, we will finish mechanical (construction) by next year and products will start coming out in the first quarter of 2020.”

 

Nigeria’s central bank would provide guarantees for about 575 billion naira in local currency for 10 years, with African Development Bank providing a $300 million loan. Trade banks from China, India and some European countries are also in the mix, Dangote said.

 

The planned refinery and petrochemical complex is expected to account for half of Dangote’s sprawling assets when it is finished next year.

 

Last week Dangote signed a loan of $650 million with the African Export-Import Bank (Afreximbank) for the project.

 

Dangote said he was looking to acquire more oilfields as his focus shift towards the oil sector to feed the refinery.

 

Outside of oil, Dangote said he is also eyeing English soccer team Arsenal.

 

“We will go after Arsenal from 2020 ... even if somebody buys, we will still go after it,” he told Reuters, referring to reports that Russian billionaire Alisher Usmanov was looking to sell his 30 percent stake in the club.

 

Dangote added that the need for healthy cash flow until completion of the refinery project rules out a move for Arsenal before then.

 

 

 

Nigeria's central bank holds benchmark lending rate at 14 pct

LAGOS (Reuters) - Nigeria’s central bank kept its main interest rate at 14 percent on Tuesday, its governor said, marking two years at the record high level.

 

Godwin Emefiele cited the risk of increasing inflationary pressure in the decision by the bank’s monetary policy committee to hold the rate at its current level. The rate has been held at 14 percent since July 2016.

 

 

 

Central bank says to start talks with KCB Bank on Imperial Bank sale

NAIROBI (Reuters) - Kenya’s central bank said on Tuesday it would enter talks with KCB Bank Kenya Limited, the country’s biggest bank by assets, to buy Imperial Bank, a small lender that has been in receivership for nearly three years.

 

Imperial Bank Limited was placed in receivership in October 2015, after the board of the privately-owned lender alerted authorities to suspected malpractices.

 

The Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation (KDIC) said in a joint statement that KCB had remained the sole bidder interested in Imperial.

 

KDIC is a state body that protects depositors in the case of a bank failure.

 

It and the central bank first received proposals from potential buyers for Imperial in April. Thereafter KCB Kenya and the other bank, whose name was not released, were approached, resulting in a revised proposal.

 

“The revised proposal was received from KCB Bank Kenya Limited, while the other bidder has withdrawn from the process,” KDIC and the central bank said.

 

“Having assessed the revised proposal, CBK and KDIC will engage KCB in discussions aimed at maximising the value for depositors.”

 

A KCB spokesman said the bank had no comment.

 

Placing Imperial Bank in receivership rattled confidence in Kenya’s financial sector where more than 40 foreign and local players operate. The move followed shortly after the liquidation of a smaller bank.

 

 

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.

 

 

Rwanda signs $300 million in loan deals with China and India

KIGALI (Reuters) - Rwanda signed loan agreements worth more than $300 million with China and India to fund roads and irrigation, officials said, as leaders from the two Asian powers made their first visits to the East African nation.

 

Chinese President Xi Jinping visited Rwanda from Sunday to Monday and granted a loan to build two roads. India’s Prime Minister Narendra Modi arrived on Monday on the way to a summit in South Africa and agreed $200 million in loans.

 

“With India we signed a loan of $100 million for irrigation in three separate areas in the country and $100 million for developing special economic zones,” Rwanda’s minister of finance Uzziel Ndagijimana told Reuters.

 

“With China we signed a loan agreement of $76 million for the road from Huye to Kibeho and for the new Bugesera airport access road it is $50 million,” Ndagijimana said.

 

 

Kumba brings in targeted dividend policy, flags South Africa rail issues

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, sending its share price higher.

 

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. Kumba’s share price at midday was 4.2 percent higher.

 

“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 reported 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.

 

Operating in South Africa often presents challenges and the company flagged problems with the rail network, which like other state-run sectors of the economy has suffered from mismanagement and underinvestment.

 

Kumba, which extracts ore in the remote Northern Cape province that is taken by train to port, said it had experienced four derailments of its products in the first half of the year. There were two derailments in the second half of 2017.

 

This cost it 2.4 million tonnes in lost sales, over 10 percent of total H1 sales of 21.2 million tonnes, and forced it to declare a force majeure in March.

 

“The derailed wagons have been replaced and performance

 

is being monitored closely to secure delivery of our contractual capacity,” the company said.

 

“Initiatives have been implemented to mitigate the impact of derailments, which include reducing loading times and improving our turnaround times at the mines.”

 

($1 = 13.4868 rand)

 

 

Lafarge Africa falls to Q2 loss, shares hit 8-year lows

LAGOS (Reuters) - Lafarge Africa posted a second-quarter pretax loss of 1.90 billion naira ($6.22 million) versus a profit of 14.57 billion naira a year earlier, sending its shares tumbling.

 

Following the loss the cement mixer announced plans to cut debt by issuing 90 billion naira in shares to existing shareholders by year-end, Chief Financial Officer Bruno Bayet told Reuters.

 

Shares in the company, a unit of Franco-Swiss group Lafarge Holcim, fell 10 percent to more than 8-year lows on the news.

 

($1 = 305.7000 naira)

 

 

 

Algeria's economic policy may accelerate inflation: IMF

ALGIERS (Reuters) - OPEC member Algeria’s decision to turn to monetary financing to cut budget deficits could cause higher inflation as its non-oil sector remains weak, the International Monetary Fund (IMF) said.

 

Algeria late last year approved a law allowing the central bank to lend directly to the public treasury to overcome deficits after a fall in energy earnings.

 

The North African country relies heavily on oil and gas, which account for about 94 percent of total exports and 60 percent of the state budget.

 

“If not adequately sterilized, the increased liquidity would raise perceived or actual nominal wealth and stimulate demand, causing prices to rise in the short term due to insufficient domestic supply or saving opportunities,” the IMF said in a report.

 

The government has imposed import restrictions for some goods including foodstuffs and home appliances as part of measures to cut spending and offset the fall in energy revenue since 2014.

 

“The government may then need to further resort to monetary financing in the subsequent years, which would risk plunging the economy into an inflationary spiral,” the report said.

 

Algeria’s inflation declined to 5.6 percent in 2017 from 6.4 percent the previous year, according to the government.

 

 

 

US to give farmers $12bn trade war bailout

The Trump administration has unveiled a $12bn (£9.1bn) plan aimed at helping US farmers hurt by the intensifying trade war.

 

The aid is intended to protect the industry as countries raise taxes on US products such as soybeans in response to the president's new tariffs.

 

The US plans to provide subsidies to farmers and buy unsold crops, among other measures.

 

Tariffs have irked farmers, a crucial voting bloc for President Donald Trump.

 

Mr Trump has said his tariffs - which he described on Tuesday in a tweet as "the greatest" - are intended to pressure countries to change their policies toward US exports.

 

In a speech on Tuesday, he said farmers would be the "biggest beneficiary" of the disputes after countries strike new trade deals.

 

Why China is targeting US hogs and Harleys

US tariffs: Allies retaliate with levies on jam, lamps and sleeping bags

US faces retaliation if car tariffs go ahead

But the agriculture industry, which draws about 20% of its income from exports, said the president's approach is hurting demand for its goods and causing long term damage to relationships with buyers.

 

Prices for soybeans have already fallen by more than 15% since April, when China - a major buyer of the crop - announced its plans to retaliate.

 

"Farmers need stable markets to plan for the future," said Brian Kuehl, executive director of the industry group Farmers for Free Trade, which represents pork producers, corn growers and others.

 

"As such, we urge the administration to take immediate action to stop the trade war and get back to opening new markets."

 

March: US announces tariffs on foreign steel and aluminium. The US imported roughly $46bn of the two metals in 2017.

 

April: China retaliates for metals tariffs by raising duties on $3bn-worth of US products.

 

June: Exemptions to US metals tariffs for EU, Canada and Mexico expire. The three countries retaliate with tariffs on a total of almost $20bn in US products.

 

July: US and China impose tit-for-tat tariffs of $34bn on the other country's products. A second round of $16bn-worth of tariffs on goods is delayed.

 

Coming up: The US is also considering additional tariffs of more than $200bn on Chinese products, as well as duties on foreign cars and car parts, which represent more than $300bn in annual trade. Canada, Mexico and the EU have said they are prepared to respond.

 

The US Agriculture Department said it expects losses of about $11bn as a result of the trade disputes.

 

Much of the $12bn in emergency relief, which does not need congressional approval, will go towards direct payments to farmers of commodities such as soybeans, sorghum, and wheat, officials said.

 

The US also plans to buy crops such as fruits and nuts, distributing them to food banks and other government nutrition programmes.

 

Some of the money will also go to boosting export efforts.

 

The first assistance is expected to be distributed by the beginning of September.

 

The programme, which will be deployed using powers created during the Great Depression, is not intended to extend beyond this year, officials said.

 

"This is a short-term solution that will give President Trump and his administration time to work on long-term trade deals that benefit agriculture and all sectors of the economy," US Agriculture Secretary Sonny Perdue said.

 

Some Republicans and even Democrats backed the aid package.

 

But industry groups that represent agriculture, as well as politicians from agricultural states, criticised the relief as a short-term solution to a self-inflicted problem.

 

"Time and time again I've heard from farmers that they want trade, not aid," said Senator Ron Johnson, a Republican from Wisconsin.

 

"Instead of throwing money at a problem we've helped create, the better option is to take action to make it easier for our farmers - and manufacturers - to sell their goods at fair prices to consumers around the world."

 

Senator Rand Paul, a Kentucky Republican, tweeted on Tuesday: "If tariffs punish farmers, the answer is not welfare for farmers. The answer is remove the tariffs."

 

Senator Ben Sasse, a Nebraska Republican, said in a statement: "This trade war is cutting the legs out from under farmers and White House's 'plan' is to spend $12 billion on gold crutches."--BBC

 

 

 

Santander sees growth but UK profits slip

Santander has warned of a "challenging environment" after its UK profits fell sharply in the first half of 2018.

 

Earnings in the UK fell by 16% because of investment costs and weaker revenues. Restructuring costs also took their toll in its home base of Spain.

 

But its global profits rose by 4% after strong growth in the US and Brazil.

 

Overall, the bank said it earned €3.75bn (£3.3bn) in the January-to-June period while increasing its customers by three million to 140 million.

 

Net earnings jumped 6% in Brazil, its largest market, while its US profits climbed 37.5%.

 

However, its profits in Argentina fell 29% in euro terms because of the weak peso, while Spanish profits were down 20%.

 

In the UK - which accounts for a fifth of the bank's profits - earnings fell to €692m.

 

Santander executive chair Ana Botin said the bank had delivered "strong growth in underlying revenue and improving credit quality, despite strong currency headwinds".

 

She said the group's "balanced presence across both Europe and the Americas" had helped it achieve "the most predictable results amongst our peers".

 

Growth in countries including Brazil and the US had "more than offset a more challenging environment in other markets".

 

Meanwhile, the firm says it is to delist on stock markets in Brazil, Argentina, Portugal, and Italy, as there are only low volumes of trading in its shares on those bourses.--BBC

 

 

 

Ryanair fleet cuts put 300 jobs at risk

Ryanair has announced it is cutting its Dublin-based fleet from 30 to 24 planes for the winter 2018 season, putting 300 jobs at risk.

 

The six planes will transfer to the carrier's Polish charter airline, which it said was growing rapidly.

 

Ryanair blamed a downturn in forward bookings and airfares in the Republic of Ireland, partly as a result of recent rolling strikes by Irish pilots.

 

About 100 pilots and 200 cabin crew have been given 90 days' notice.

 

The airline said their services "may not be required from 28 October onwards".

 

Earlier this week, Ryanair said its profits in the April-to-June quarter had been hit by higher wage costs as the airline faces strikes by staff over pay and conditions.

 

It said higher oil prices and a fall in fares also dented profits, which fell 20% to €319m (£285m).

 

Ryanair is facing more strikes. Cabin staff in Spain, Portugal, Belgium and Italy are walking out on Wednesday and Thursday, forcing the cancellation of 600 flights.--BBC

 

 

 

Time for a break in Kit Kat trademark case

When is a Kit Kat not a Kit Kat?

 

If it's a four-fingered wafer covered in chocolate, the Kit Kat people would tell you they own that design.

 

Spare a thought, then, for identical treats like Norway's Kvikk Lunsj - pronounced "quick lunch" - which has been around for 80 years.

 

Nestlé has tried to trademark the chocolate bar's three-dimensional shape for more than a decade, which rival Cadbury has fought hard against.

 

The European Court of Justice is due to hand down judgement on Wednesday, which could end Kit Kat's protected European status and a saga that has proved expensive for both sides.

 

It could also open the door to own-brand imitations at your local supermarket.

 

A tale of four fingers

British and US readers may not even have heard of Kvikk Lunsj.

 

Norwegians, though, have national pride in the snack, and its long-running image as a meal on the go for healthy Scandinavian hikers.

 

Its chocolate has a different flavour from the Kit Kat, similar to parent company Mondelez's Milka brand. Taste-testing from the Guardian newspaper last year concluded that Kvikk Lunsj was, in fact, the superior product.

 

The Norwegian bar has been made since 1937, a mere two years after Kit Kat - originally called Rowntree's chocolate crisp - hit the market in 1935.

 

For 65 years, the two crispy treats lived together in harmony - until Nestlé went on the offensive.

 

In 2002, the global chocolate giant applied for a trademark in Europe for Kit Kat. There was no issue with the bar itself, embossed with the Kit Kat logo.

 

But it also applied for the trademark for the shape of a Kit Kat - or "four trapezoidal bars aligned on a rectangular base" as a top EU legal adviser put it.

 

n

A real Kit Kat has logos - but what about the shape on the left, from Nestlé's application?

After four years of back-and-forth, the EU trademark granted Nestlé the shape as a trademark.

 

The makers of Kvikk Lunsj, Mondelez, also owns brands including Cadbury, Milka, Oreo, and Toblerone - and Cadbury took issue with Nestlé's new trademark.

 

Mondelez also makes the Leo bar - another four-fingered chocolate treat.

 

In 2007, the court battle began in earnest, see-sawing from one side to the other during appeal after appeal.

 

Can the KitKat shape be a trademark?

The battle to stop people from copying shapes

What's in a shape?

In Europe, the most recent Kit Kat ruling is on whether the brand has become distinctive enough to deserve its trademark - essentially, that its shape alone was how people recognise the snack.

 

In 2016 the court decided that Nestlé had to prove a Kit Kat was recognisable in every EU country - and no evidence had been provided for Belgium, Ireland, Greece, and Portugal.

 

And none of the parties involved - Mondelez, Nestlé, or the European trademark office - is happy.

 

Nestlé and the EU trademark group appealed against the 2016 decision. If proof of distinctiveness had to be shown for every single member state, they argued, no company could ever reach that high standard.

 

Mondelez challenged other portions of the ruling, including the classification of Kit Kat as a biscuit rather than a chocolate bar.

 

But in April 2018, one of the top lawyers at the European Court of Justice, Melchior Wathelet, wrote an opinion for the judges.

 

His recommendation was to throw out Nestlé's appeal and stick to the 2016 ruling, annulling the European trademark.

 

The court often adheres to such recommendations - but doesn't have to.

 

Nestlé has been looking for Europe-wide protection for the Kit Kat shape, but there's also been an almost identical case in the UK.

 

That ended in a 16,000-page ruling that Kit Kat had "no inherent distinctiveness".

 

Triangular trials

European status aside, chocolate is serious business for trademark lawyers on a country-by-country basis. Cadbury lost its own trademark battle when it tried to register a shade of purple.

 

And back in 2006, a case involving gold chocolate bunnies asked similar questions to the Kit Kat saga.

 

Swiss chocolatier Lindt applied for a trademark for its Easter bunnies with a red ribbon, which are iconic in many countries - but not all.

 

In Germany, the Riegelein company also made gold-wrapped bunnies, and the case made it to both European and German courts - where Lindt eventually lost.

 

And while Mondelez claims you can't trademark the shape of a Kit Kat, it's sure you can trademark a Toblerone - which it owns.

 

Toblerone to revert to original shape

Toblerone's shape was registered in 1998 - but was only put to the test last year, when British retailer Poundland designed an off-brand version.

 

Featuring two rows of triangular bumps rather than one, Poundland argued that its copycat wasn't a trademark infringement - especially since Toblerone had changed the shape of their UK product to reduce weight.

 

That disagreement was settled out of court.--BBC

 

 

 

Ivanka Trump closes down her fashion brand

President Donald Trump's daughter, Ivanka Trump, has decided to close down her fashion brand.

 

The move comes over a year after she split from the company to enter the White House as a senior adviser.

 

Ms Trump launched the brand in 2014, but after her father's election was faced with boycotts from shoppers.

 

Ms Trump had reportedly become frustrated by the difficulties posed by avoiding possible conflicts of interest while serving in the White House.

 

A spokesperson for the company said the decision "has nothing to do with the performance of the brand and is based solely on Ivanka's decision to remain in Washington indefinitely."

 

After 17 months in her White House role Ms Trump said she did not know "when or if I will ever return to the business".

 

 

"But I do know that my focus for the foreseeable future will be the work I am doing here in Washington, so making this decision now is the only fair outcome for my team and partners," Ivanka Trump said in a statement.

 

"I am beyond grateful for the work of our incredible team who has inspired so many women; each other and myself included. While we will not continue our mission together, I know that each of them will thrive in their next chapter," she added.

 

According to NBC News, Ms Trump met personally with her 18-person staff at Trump Tower in New York City after the company's closure was announced to employees.

 

The brand had already been dropped by several retailers such as the Nordstrom chain and - just last week - Canada's largest department store chain Hudson's Bay.

 

Both companies blamed poor sales for their decision.

 

Ms Trump's company is private and does not release sales figures.

 

But according to the Wall Street Journal, which cited research from Rakuten Intelligence, online sales at Amazon, Macy's and Bloomingdales fell almost 45% in the year to June.

 

An investigation by the Washington Post last year found that virtually all of Ms Trump's clothing was manufactured in developing countries such as Bangladesh, Indonesia and China.

 

Ivanka Trump clothing brand sales 'boom'

Trump charity sued for 'illegal conduct'

A spokesperson for the firm told the Wall Street Journal that the fall was due to a tough comparison against last year when sales soared after Donald Trump became president.

 

The reported sales surge last year came after after Kellyanne Conway, a counsellor to President Trump, was accused of breaking ethics rules by promoting Ivanka Trump products during a live TV interview from the White House.

 

Ms Trump's fashion career started with the launch of her jewellery brand in 2007. She developed seven categories ranging from footwear and handbags to eyewear and fragrance over the next six years.

 

Ms Trump herself imposed restrictions on how the company could operate when she moved to work for her father, including not expanding internationally and requiring the firm to obtain her approval before striking agreements with new domestic partners.

 

The company said these restrictions limited the company's ability to grow and meant winding down the business was the fairest option for the brand's partners and its employees.

 

The firm also said that Ms Trump would not agree to selling the brand since a third party was unlikely to adhere to the restrictions she had put in place.

 

Current licensing agreements with partners will continue until the end of their period, meaning the company's products would continue for now to be sold at US stores such as Bloomingdales, Zappos and Amazon, the firm said.

 

 

 

 

 

 


 

 


 

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

Skype:         Bulls.Bears 



 

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