Major International Business Headlines Brief::: 07 June 2018

Thu Jun 7 10:27:06 CAT 2018

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Major International Business Headlines Brief::: 07 June 2018

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

*  Zimbabwe's Zimplats leases mining land to government, ending dispute

*  South African rand steadies ahead of manufacturing output data

*  Kenya private sector activity falls in May - Markit

*  South Africa's rand to weather emerging markets storm, tighten up vs dlr

*  Sudan's central bank starts circulating new 50 pound banknote

*  South Africa's net foreign reserves fall to $42.87 billion in May

*  Ethiopia loosens throttle on many key sectors, but privatisation still far off

*  MTN says Ethiopia's telecoms market "a natural fit" for South African firm

*  House of Fraser to close 31 stores

*  Volkswagen admits it can't cope with new emissions tests

*  Brexit: Ministers meet over customs 'backstop' plans

*  Emirates looks to windowless planes

*  Store landlords push back against rent cuts

*  European football is worth a record £22bn, says Deloitte

 <mailto:info at bulls.co.zw> 

Zimbabwe's Zimplats leases mining land to government, ending dispute

HARARE (Reuters) - Impala Platinum’s Zimbabwean subsidiary said on Wednesday that it had agreed to lease nearly half of its mining land to the government and that in turn it had received two mining leases valid for the life of its operations.

The southern African nation had since 2013, under former president Robert Mugabe, unsuccessfully tried to seize the land from Zimplats, the country’s biggest platinum miner.

 <mailto:info at bulls.co.zw> 

South African rand steadies ahead of manufacturing output data

JOHANNESBURG (Reuters) - South Africa’s rand steadied in early trade on Thursday as traders awaited April manufacturing data for evidence on the performance of the economy at the start of the second quarter after a surprising GDP contracting in the first quarter.

At 0632 GMT, the rand traded at 12.7250 per dollar, not far off its close of 12.7150 on Wednesday

Statistics South Africa will publish April manufacturing figures at 1100 GMT, with economists polled by Reuters expecting a one percent year-on-year increase after output fell in March

Data on Tuesday showed first-quarter gross domestic product (GDP) shrank 2.2 percent, led by a slowdown in agriculture, mining and manufacturing

The yield for the benchmark government bond due in 2026 was up 2 basis points to 8.695 percent, reflecting weaker bond prices

Kenya private sector activity falls in May - Markit

NAIROBI, June 6 (Reuters) - Kenya’s private sector activity growth slowed in May on the back of slower increases in output, new orders and employment, a survey showed on Wednesday.

The Markit Stanbic Bank Kenya Purchasing Managers’ Index(PMI) for manufacturing and services fell to 55.4 in May from 56.4 in April. Anything above 50 denotes growth; anything below, contraction.

“Slightly easing from April’s survey record, the rate of growth remained strong and above the series average. According to anecdotal evidence, favourable economic conditions and strong underlying demand were the key factors behind the latest expansion,” Markit said.

“Despite softening from April’s 16-month high, the rate of growth remained sharp overall. Panellists attributed new client wins to stronger market demand. Amid reports of stronger demand from international markets, growth in new export orders also remained strong.”

The report said that businesses continued to face higher input costs.

Kenya’s inflation rose to 3.95 percent year-on-year in May from 3.73 percent the previous month, data from the statistics office showed.[nN6N1GS02G]

Jibran Qureishi, regional economist for East Africa at Stanbic Bank, said businesses were watching for more details on a draft law aimed at regulating the conduct of financial institutions, and if it will lead to an expansion of private sector credit growth.

Qureishi said that businesses were also watching to see if there will be an amendment or modification to a law capping commercial interest rates, in place since 2016, that has contributed to slowing private sector credit growth.

“Any additional details of the Financial Market Conduct Bill will also be sought out for given the broad concern currently that the draft Bill may not result in a more favourable environment for credit extension to the private sector,” Qureishi said.

Last month, the central bank criticised the Financial Markets Conduct bill, which proposes the creation of a regulator in addition to the central bank to deal with the conduct of lenders.

- Detailed PMI data are only available under licence from Markit and customers need to apply to Markit for a licence.

South Africa's rand to weather emerging markets storm, tighten up vs dlr

JOHANNESBURG (Reuters) - South Africa’s rand is expected to weather the emerging markets dollar storm better than its peers over the next 12 months due to attractive interest rate returns, despite a weak economic start to 2018, a Reuters poll found.

The rand is expected to recover to 12.50 per dollar in 12 months from 12.76 currently, more than 2 percent firmer, according to the median forecast of around 30 strategists in the June 4-6 poll.

“Our real interest rates remain attractive and could lure capital flows back, once the ‘risk-off’ sentiment subsides,” said Elize Kruger at NKC African economists.

South Africa’s central bank kept its benchmark repo rate at 6.5 percent last month after cutting it at the previous meeting, as it weighs up the risks to consumer price inflation against a fragile economic recovery.

No interest rate changes are expected until at least the end of next year, according to a separate poll last month.

Kruger reckons the rand’s fair value is around 12.35 per dollar, suggesting the currency has potential to firm up.

The poll was largely taken before the rand hit a two-week low against the dollar on Tuesday, in the wake of data showing the economy suffered its worst quarterly contraction in nine years during the first three months of 2018.

Despite a hesitant start to the year, the renewed investment interest in the South African economy should lift economic growth more meaningfully while good global growth also remains supportive.

Analysts expect the dollar rally to have run its course and to gradually weaken towards the end of the year, driven among other factors by U.S. twin deficit developments that should support the rand somewhat.

South Africa’s economy was expected to expand 1.8 percent this year after expanding 1.3 percent in 2017, last month’s Reuters poll found.

Still, business confidence fell for the fourth month in a row in May, mainly due to a slide in trade activity and higher consumer inflation following a hike in value-added tax.

Sudan's central bank starts circulating new 50 pound banknote

KHARTOUM (Reuters) - Sudan’s central bank has started circulating new 50-pound Sudanese bills, while withdrawing the old ones, the bank said in a statement late on Wednesday, citing the spread of fake banknotes that have caused an increase in liquidity and pushed prices higher.

Inflation in Sudan rose to 57.65 percent in April, amid rising food prices and an ongoing fuel shortage.

Prices have continued to rise as the value of the Sudanese pound has renewed its fall on the black market, despite government measures to control spending and tighten liquidity.

“It was found that there are large quantities of the 50-pound bill circulating, of which their source is unknown and do not match the technical specifications; Which confirms the leakage of counterfeit currencies,” the statement said.

“This and other factors clearly caused price hikes which directly affected the daily life of citizens.”

The central bank has not yet set a timeline for withdrawing the old 50-pound note, the highest value banknote.

The pound now trades at an average of 29.27 pounds to the dollar in banks, but traders say they sell U.S. dollars for around 38 pounds.

The government is targeting a sharp fall in inflation to 19.5 percent by the end of 2018 from 34.1 percent at the of end of 2017, and has often denied that it plans to float its currency.

“The step to change the currency, is among many steps the central bank has taken to control liquidity, rising inflation and trade in the black market,” said a senior official at a commercial bank, who spoke on condition of anonymity.

“The fear is that these measures might weaken the confidence of people in the banking system ... security procedures will not solve the crisis of the dollar scarcity,” the official added.

The United States lifted 20 years of sanctions against Sudan in October, in a move that looked set to help Sudan’s ailing economy, but the country has since plunged into a fiscal crisis, with the Sudanese pound’s value plummeting and no significant increase in foreign investment.

South Africa's net foreign reserves fall to $42.87 billion in May

JOHANNESBURG (Reuters) - South Africa’s net foreign reserves fell to $42.872 billion in May from $43.115 billion in April, the Reserve Bank said on Thursday.

Gross reserves rose to $51.146 billion from $49.539 billion, the central bank data showed.

The forward position, which represents the central bank’s unsettled or swap transactions, declined slightly to $1.918 billion from $1.933 billion in the previous month.

Ethiopia loosens throttle on many key sectors, but privatisation still far off

ADDIS ABABA (Reuters) - Ethiopia’s decision to sell stakes in its lucrative telecoms monopoly and other assets could open one of the world’s largest untapped markets to huge potential investments by firms willing to work with a government still wary of private enterprise.

The stake sales are part of a raft of measures announced by Abiy Ahmed, a young former army officer who became prime minister in April, saying a new start was necessary to end crisis and chaos in a country of 100 million people, where some 40 percent are aged under 15.

While some fear Ahmed is moving too fast to challenge entrenched interests in his ruling EPRDF coalition, there is also hope across the region that his reforms will help ease crippling unemployment, foreign currency shortages and poverty.

The stake sales were announced on Tuesday, the same day Ethiopia said it would implement a 2000 peace deal with neighbouring Eritrea and cede disputed territory on the border it has occupied for nearly 20 years.

Companies have been waiting in the wings for Ethiopia to open its state monopolies and Tuesday’s news was welcomed.

South Africa telecoms group MTN told Reuters that it was excited by the potential opening up of the Ethiopian market “as it would be a natural fit for MTN’s existing pan-African footprint.” [L5N1T82JF]

South African peer Vodacom said, “Vodacom has said on many occasions that Ethiopia is an attractive market so it follows that there would be interest. Naturally this is dependent on what might become available and if it fits within our investment parameters.”

It is unclear whether the government would consider licensing foreign mobile operators. Interest might be limited if the only option is a minority stake in the monopoly.  

Analysts have said the government’s move falls far short of enabling full competition by multinationals. They note that by selling minority stakes the EPRDF is underscoring its view that the state should be a key player in the economy.

But the step is still radical for the EPRDF, in power since it took over from the communist Derg regime in 1991, and could indicate how 41-year-old Abiy plans to steer the country.

The economic reforms come two months after Abiy took power promising political changes to address roiling anger among young people over ethnic marginalisation and unemployment.

The invitation to private investors to take shares in state companies including highly profitable Ethiopian Airlines is an acknowledgment the public sector alone could not provide adequate jobs or push export earnings higher, said one Addis Ababa-based analyst who spoke on condition of anonymity.

“There is a realization that you might need the private sector’s help,” he said.

In a statement issued Tuesday evening after a day-long meeting, the EPRDF’s executive committee said it recognised that economic reforms needed to be taken to sustain economic growth that has averaged near 10 percent for the past decade.

The statement referenced foreign exchange shortages that are draining shops of goods that suppliers cannot access hard currency to import. Foreign reserves are estimated by economists to cover less than two months’ of imports.

ECONOMIC TRANSFORMATION

The government has poured earnings from the national flag carrier and Ethio Telecoms into its infrastructure projects, part of an ambitious strategy to transform an agrarian nation into an industrialized one where the manufacturing sector provides large export earnings.

More revenues are needed, government spokesman Ahmed Shide told reporters after the coalition’s announcement.

Calling state-owned corporations a “huge source of wealth”, Shide said allowing private investors to buy shares “will enable us to generate even more wealth through them”.

But the morning after the premier himself suggested that, while the reforms are necessary, they come with risks.

“It is progressive. This new economic decision will afford us the opportunity to resolve widespread unemployment, ease foreign currency shortages, and reduce weaknesses in market connectivity,” Abiy said on Wednesday.

“However, unless implemented with skill, knowledge and focus,” Abiy said, “it can lead to a repeat of the pervasive theft seen in many African countries and a destruction of Ethiopia’s wealth.”

“The government is still deeply sceptical about capitalism and ‘speculative investors’”, said Charlie Robertson, global chief economist at Renaissance Capital, an emerging market investment bank.

Despite being Africa’s fastest growing economy, Ethiopia is a poor nation where GDP per capita is less than $800 per year and affordability of items like a smartphone is low.

The stakes sales also raise the question of what the government will do with the exchange rate. Foreign investors will want an easily convertible local currency. The Ethiopian birr is overvalued by at least 15 percent, according to the black market spread.

Still, there is undoubtedly huge untapped potential in the market given its size and under-served population, said Jacques Nel at research group NKC African Economics.

“Ethiopia remains a difficult place in which to do business, with inadequate infrastructure and opaque regulatory requirements, while the government remains deeply involved in most facets of the economy,” Nel said. “Foreign investors will still have to contend with these challenges.”

MTN says Ethiopia's telecoms market "a natural fit" for South African firm

JOHANNESBURG (Reuters) - South Africa’s MTN Group said on Wednesday it was excited by the potential opening up of the Ethiopian market “as it would be a natural fit for MTN’s existing pan African footprint”.

“Ethiopia presents many exciting telecommunication opportunities and we look forward to further discussions with that nation’s authorities on potential partnerships and opportunities,” the mobile network provider told Reuters in an emailed response to questions.

Ethiopia said on Tuesday it would open its state-run telecoms monopoly and state-owned Ethiopian Airlines to private domestic and foreign investment, a major policy shift that will loosen the state’s grip on the economy.

House of Fraser to close 31 stores

Department store chain House of Fraser is to close 31 of its 59 shops, affecting 6,000 jobs, as part of a rescue deal.

If the plan is approved, 2,000 House of Fraser jobs will go, along with 4,000 brand and concession roles.

The stores scheduled for closure, which include its flagship London Oxford Street store, will stay open until early 2019, House of Fraser said.

The retailer needs the approval of 75% of its creditors to go ahead.

Creditors will vote on the insolvency plan, which involves two company voluntary arrangements (CVAs), on 22 June.

House of Fraser chairman Frank Slevin said: "The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive.

"Our legacy store estate has created an unsustainable cost base which, without restructuring, presents an existential threat to the business."

Closing stores was "a very difficult decision", he said, but "there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive".

Accountancy firm KPMG, which is overseeing the insolvency process, said the firm had been hit by "mounting pressures facing the UK High Street".

The House of Fraser stores identified for closure:

Altrincham, Aylesbury, Birkenhead, Birmingham, Bournemouth, Camberley, Cardiff, Carlisle, Chichester, Cirencester, Cwmbran, Darlington, Doncaster, Edinburgh Frasers, Epsom, Grimsby, High Wycombe, Hull, Leamington Spa, Lincoln, London Oxford Street, London King William Street, Middlesbrough, Milton Keynes, Plymouth, Shrewsbury, Skipton, Swindon, Telford, Wolverhampton, Worcester.--BBC

Volkswagen admits it can't cope with new emissions tests

Germany's Volkswagen has warned its main factory in Wolfsburg faces temporary shutdowns later this year, owing to new emissions test standards.

It plans "closure days" to prevent a build-up of vehicles that have yet to be approved for sale.

>From September, more rigorous EU standards apply, designed to replicate real driving conditions more closely.

Now VW says it does not have enough testing equipment to cope and fears that a backlog of cars will ensue.

At a meeting with unions on Wednesday, chief executive Herbert Diess admitted that meeting the new requirements, and getting new cars approved for sale, was proving a challenge.

Closure plan

"We will only build vehicles after the works holiday that fulfil the new standards. The deliveries will take place gradually as soon as the necessary approvals are there," Mr Diess told staff.

"But many vehicles will have to be warehoused in the meantime. To make sure their numbers don't become too large, we will have to plan closure days through the end of September," he added.

VW is still facing fallout from the scandal over its emissions cheating, which erupted in September 2015.

Last month, former chief executive Martin Winterkorn was charged by US prosecutors in Detroit with conspiring to mislead regulators.

The firm was found to have falsified diesel vehicles' emission levels by installing software "defeat devices" that allowed the vehicles to perform better in test conditions than they did on the road.--BBC

Brexit: Ministers meet over customs 'backstop' plans

Theresa May meets senior ministers later to try to resolve tensions over the UK's Brexit "backstop" plan.

In the proposal the UK would match EU tariffs temporarily in order to avoid a hard Irish border post-Brexit.

Number 10 had been expected to publish the "temporary customs arrangement" on Thursday, but faced resistance from Brexit Secretary David Davis.

Brexiteers are concerned that without a fixed end date the arrangement could continue indefinitely.

The UK is due to leave the EU in March 2019, and the government is trying to make progress before a crucial meeting of EU leaders later this month.

Brexit: Key dates and potential flashpoints

Corbyn likens Brexit to trains 'shambles'

Reality Check: The government's customs options

BBC political editor Laura Kuenssberg said Downing Street believed it had enough support from senior ministers to publish the "backstop" proposal.

"But what they hadn't quite bargained for was the level of resistance from the man who is meant to be in charge of this process (Mr Davis)," who wants a time limit added to the backstop, she said.

She added that it was possible that the saga could potentially lead to the resignation of Mr Davis, but that it was not likely at this stage.

What is the customs 'backstop' issue?

The UK has said it will leave the EU's customs union - which allows trade within the EU without any tariffs or many border checks - but has yet to agree on what will replace it.

The UK and the EU are still trying to agree how trade in goods will operate after Brexit - but they have agreed that a "backstop" option is needed in case no deal is done, to avoid the return of a hard border between Northern Ireland and the Republic of Ireland.

The UK has said that the EU's initial "backstop" proposal - effectively keeping Northern Ireland in the customs union - would create what amounted to a border between Northern Ireland and the rest of the UK and was not acceptable.

Instead, the UK is proposing a "backstop" option which will see the whole of the UK temporarily aligned with the EU's customs union after December 2020 - when the 21-month post-Brexit transition period ends.

The plan, which Theresa May has said would only apply in a "limited set of circumstances", would see the UK match EU tariffs in order to avoid border checks and allow it to sign and implement its own trade deals.

The BBC understands the plan circulated among some ministers on Wednesday morning refers explicitly to the whole of the UK rather than just to Northern Ireland.

Pressed on the issue at Prime Minister's Questions, Theresa May insisted the UK was on track to leave the EU in March 2019 and that the transition period would last no longer than 31 December 2020.

Downing Street added that the backstop arrangement was unlikely to be needed and would be "strictly time-limited" - but Mr Davis is said to believe that the proposals should also specify an end date.

He told a press conference on Wednesday that he "expected" there to be a time limit in the signed-off version of the plan.

Speaking in London, he said the details had yet to be approved and that he believed Thursday's meeting of the cabinet's Brexit sub-committee would be "decisive".

The dispute comes ahead of an EU summit at the end of the month, which may include discussion of the Northern Ireland border.

Sources in Brussels have told BBC Europe editor Katya Adler that Mr Davis will go to Brussels on Monday after requesting an "informal" meeting with his EU counterpart, Michael Barnier.

No 10 have prepared a proposal for a "Temporary Customs Arrangement", where the UK would retain close ties to the EU for an indeterminate period after the end of the transition period - past 2020 - in case none of their hoped for customs fixes come to pass.

They believed they had the support of senior ministers to publish it on Thursday, even without explicit and detailed discussions of the written paper itself in the inner Brexit cabinet, let alone the full gathering of senior ministers.

It became clear, however, and rather surprisingly to the outside observer, that the man in government who is meant to be in charge of the Brexit process was not completely on-board.

So the brakes have been slammed on publishing the paper until meetings and discussions between senior ministers on Thursday.--BBC

Emirates looks to windowless planes

Emirates Airline has unveiled a new first class suite on board its latest aircraft that features virtual windows.

Instead of being able to see directly outside, passengers view images projected in from outside the aircraft using fibre-optic cameras.

The airline says it paves the way for removing all windows from future planes, making them lighter and faster.

Emirates president Sir Tim Clark said the images were "so good, it's better than with the natural eye".

The virtual windows can be found in the first class cabin of Emirates' newest Boeing 777-300ER aircraft.

Sir Tim told the BBC that the ultimate aim was to have planes with no windows at all.

"Imagine now a fuselage as you're boarding with no windows, but when you get inside, there are windows," he said.

"Now you have one fuselage which has no structural weaknesses because of windows. The aircraft are lighter, the aircraft could fly faster, they'll burn far less fuel and fly higher."

Cabin crew need to be able to see outside the aircraft if there is an emergency, aviation safety expert Professor Graham Braithwaite of Cranfield University said.

"Being able to see outside the aircraft in an emergency is important, especially if an emergency evacuation has to take place," he said.

"Flight attendants would need to check outside the aircraft in an emergency, for example for fire, before opening a door and commencing an evacuation - and anything that needed power to do this may not be easy to get certified by an aviation safety regulator," he added.

However, aviation regulator the European Aviation Safety Agency said: "We do not see any specific challenge that could not be overcome to ensure a level of safety equivalent to the one of an aircraft fitted with cabin windows."

Prof Braithwaite said the main obstacle in a windowless aircraft would be passenger perceptions of the technology.

"An aircraft could be very claustrophobic and for many, air travel is anxiety inducing already.

"The refresh rate of screen technology may also have some undesirable side effects - will they flicker? What is the lag? How will it affect someone on a long haul flight?" he asked.

'No substitute'

Aviation expert John Strickland said having no windows would make aircraft more structurally sound. The move could also improve fuel efficiency if the fuselage were lighter than the windows it replaced.

"Everything that reduces weight on an aircraft is going to reduce fuel burn," he said.

However, he personally liked to be able to see out of a plane: "I'm a bit of a window obsessive. For me, artificial windows would be no substitute."--BBC

Store landlords push back against rent cuts

Landlords have called for a government review as more struggling retailers ask for rent reductions.

The British Property Federation (BPF) says too many companies are abusing an insolvency process called a Company Voluntary Arrangement (CVA).

The pushback from landlords comes as House of Fraser became the latest retailer to finalise a restructuring plan that involves a CVA.

Under the CVA, the department store chain is closing 31 of its 59 shops.

As part of the plan, House of Fraser is asking for a 25% rent cut on 10 of the stores that it plans to keep open.

A CVA is an insolvency process designed to let a firm with debt problems reach an agreement with creditors to help pay off part or all of its debts.

Six reasons behind the High Street crisis

Retail crisis forces hundreds of closures

However, the BPF said that it was too often being used to negotiate rent reductions as a cost-cutting exercise for a business, and called on ministers to conduct an independent inquiry into the use of CVAs.

A number of retailers have embarked on CVAs this year, including New Look, Carpetright and Mothercare.

BPF chief executive Melanie Leech said landlords wanted to help genuinely struggling businesses, but some of its members believed that CVAs were being misused.

"Landlords get a raw deal in any CVA - they are going to be one of the biggest creditors," she said.

"They are always going to be hard hit. The issue is whether they are fairly taking a share of the pain."

According to Ms Leech, there can be "unfair discrimination" between creditors, where landlords are asked to shoulder a disproportionate amount of the costs compared with shareholders and banks.

Businesses can also misuse CVAs as cost-cutting measures to negotiate rent cuts or close unprofitable outlets while keeping profitable shops open, she added. "The CVA is not just a tool in the armoury of cost-cutting."

Firms misusing the process also fail to take into account the other parties affected by CVAs. Large pension funds can have stakes in property which take a hit, Ms Leech said, while local economies suffered from shop closures.

The British Retail Consortium said retailers only entered a CVA after exploring all other options and would not have taken the decision lightly.

"CVAs offer retailers the ability to continue trading while taking emergency steps which, if successful, may lead to jobs being saved and fewer property vacancies," a spokesperson said.--BBC

European football is worth a record £22bn, says Deloitte

The big five European leagues generated a record €14.7bn (£12.6bn) in revenue in 2016-17, a 9% annual increase, according to new figures from Deloitte.

It says the European football market is now worth some €25.5bn (£21.9bn).

The English Premier League was the market leader, with record revenue of £4.5bn, as each of the 20 clubs set their own annual revenue record.

In revenue terms, the Premier League is 86% larger than its nearest competitor, Spain's La Liga.

Deloitte said the financial results of the 2016-17 football season reflected a new era of improved profitability and financial stability for European football clubs.

'Resilience and strength'

It said the Premier League had benefited from the impact of its record broadcasting deals, as well as from operating in a regulated business environment, via Uefa Financial Fair Play regulations and the league's own cost control measures.

"Just a decade ago, 60% of Premier League clubs were making an operating loss, whereas in the 2016-17 season, all clubs were profitable," said Dan Jones, head of Deloitte's sport business group.

"In addition, and for the first time ever, Premier League clubs' revenues have grown at a faster rate than wages over a 10-year period."

He said that although the sale of the Premier League's domestic TV rights for the 2019-20 to 2021-22 seasons did not deliver the expected financial increase, this should not be a cause for concern.

"The fact that the Premier League has once again shown its resilience and strength by retaining the vast majority of its audience and value has provided market leading financial security to clubs for at least the next four years, providing they are not relegated," Mr Jones added.

"Indeed, once the sales process for the remaining international rights is completed, we expect the league will have delivered overall increases in television revenue."

Tax contribution

Other findings regarding English football finances in 2016-17 include:

The top 92 Premier League and Football League clubs generated a record £5.5bn in revenue

Premier League clubs' revenues increased to £4.5bn, an increase of 25% as the first year of a new broadcast rights cycle saw clubs paid between £95m and £150m in central distributions

All top-flight clubs made an operating profit

Championship clubs generated record combined revenues of £720m, a 30% increase from 2015-16. The three newly relegated clubs generated almost one-third of this total revenue

It is now more than five years since an English football club entered insolvency proceedings, reflecting better financial discipline and the positive impact of regulation

The 92 Premier League and Football League clubs contributed £1.9bn to the UK government in taxes (2015-16: £1.6bn).

European participation

Meanwhile, Scottish Premiership revenues increased by 63% to £181m in 2016-17, driven by the on-field success of Celtic, and Rangers' participation in Scotland's top flight.

Celtic's participation in the 2016-17 Uefa Champions League contributed €32m, more than the amount distributed across all 12 clubs from the Scottish leagues' own broadcast revenues in 2016-17.

Aggregate match-day and commercial revenues both increased by more than 40%, as Rangers participation in the top division helped to drive Scotland's top tier back into the top 10 revenue generating leagues in Europe.

Inter impact

Outside the UK, the success of La Liga's collective sales approach saw broadcast revenue growth of 20%.

That followed on from 26% growth in the 2015-16 season, has meant collective La Liga revenue grew to a record €2.9bn in 2016-17.

The Spanish league has overtaken the Bundesliga to be the world's second-highest revenue-generating league.

Meanwhile, the German Bundesliga remained the best attended European league, with average crowds of over 44,000.

Bundesliga clubs collectively maintained their strong overall revenue growth, up 15% from 2015-16 to €1.4bn.

Italy's Serie A saw revenue grow by 8% to more than €2bn for the first time. The majority of this growth came from commercial sources, with revenue increasing by €91m (17%) on 2015-16.

More than three-quarters of this was was solely attributable to Internazionale, following the club's acquisition by Chinese electronics retailer Suning in June 2016.

France's Ligue 1 remained the lowest revenue-generating of Europe's "big five" leagues, at €1.6bn in 2016-17, despite entering a new four-year domestic broadcasting rights cycle.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Edgars

AGM

Edgars Training Auditorium, 1st Floor, LAPF House, 8th Ave/Jason Moyo St, Bulawayo

07/06/2018 9am

Turnall

AGM

Jacaranda Room, Rainbow Towers

07/06/2018 9am

FMHL

AGM

Royal Harare Golf Club

11/06/2018 2:30pm

RioZim

AGM

Head Office, 1 Kenilworth Road, Highlands

21/06/2018 10:30am

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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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=AFQjCNH8LYgdY55h-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%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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