Major International Business Headlines Brief::: 11 June 2018

Mon Jun 11 11:30:26 CAT 2018

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Major International Business Headlines Brief::: 11 June 2018

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*  South Africa's finance minister warns of challenges as rand tumbles

*  Libyan officials look to foreign currency fees to tackle exchange rate - cenbank

*  Egypt's annual urban consumer price inflation decreases to 11.4 pct in May - CAPMAS

*  Congo mining code regulations signed into law - aides

*  Glencore faces additional legal challenge over Congo mine

*  Botswana cancels plans to sell troubled power plant to Chinese firm

*  S.Africa's Murray & Roberts asks antitrust body to restrict ATON voting rights

*  Gold prices tread water ahead of G7, U.S. Fed meetings

*  South African rand slumps to near 6-month low, bonds weaken

*  Legal & General targets climate change laggards

*  Rolls-Royce refuses to confirm or deny 4,000 job cuts report

*  G7 summit: War of words erupts between US and key allies

*  Vietnam protesters clash with police over new economic zones

*  Firms will have to justify pay gap between workers and bosses

*  The people making money from Fortnite

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South Africa's finance minister warns of challenges as rand tumbles          

JOHANNESBURG (Reuters) - The South African government is concerned by the rand’s plunge to its lowest this year and will step up a “defence mechanism”, Finance Minister Nhlanhla Nene said, but he fell short of calling the currency’s dip a crisis.

The rand dropped to 13.2875 against the dollar on Friday, its weakest since Dec. 18, Thomson Reuters data showed, as the country’s economy and slowed and global investors shied away from riskier assets.

“Call it very challenging times. It then depends when you begin to call it a crisis,” Nene told the Sunday Times.

“But these are very challenging times, and it’s for this reason that we can’t be complacent about it. We actually just need to step up our defence mechanism.”

He did not say what measures South Africa could take.

South Africa’s rand suffered last week when data showed the economy shrank by 2.2 percent in the first quarter of 2018, with the most significant falls in agriculture, manufacturing and mining.

At the same time, risk appetite among investors has eroded on speculation Europe’s massive monetary stimulus is nearing an end, compounded by uncertainty over trade relations before a meeting of G7 leaders.

The rand had rallied when Cyril Ramaphosa seemed set to be elected leader of the ruling African National Congress in December. His election as state President in February, days after Jacob Zuma was forced out as leader by the ruling party, gave the currency even further momentum.

Ramaphosa pledged to clean up governance, deal with high unemployment and improve basic services, igniting a wave of optimism. But the recent poor economic data has eroded some of the enthusiasm in Africa’s most industrialised economy.

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Libyan officials look to foreign currency fees to tackle exchange rate - cenbank

TUNIS (Reuters) - Economy officials in the Libyan capital, Tripoli, have agreed to a three-track reform process including a proposal to impose fees on foreign currency transactions, the central bank said on Saturday.

The central bank gave no details of how the fees would work, but they would be aimed at tackling the wide gap between the official exchange rate of 1.4 dinars to the dollar, and the parallel rate of around 7 dinars.

The gap is seen as a major factor in distorting Libya’s oil-dependent economy, contributing to a liquidity crisis and causing corruption as those with access to dollars at the official rate make huge profits through import scams.

Libya was once one of the wealthiest countries in the region, but its economy has been crippled by conflict and political division over the past five years.

The central bank said the framework announced on Saturday was agreed with Fathi al-Majbari, who heads the economic file for the internationally recognised government in Tripoli.

The other tracks were described as addressing subsidies and “creating a mechanism of compensation to mitigate the repercussions and effects of economic reform.”

The statement came after an internationally mediated meeting in Tunis this week at which the central bank governor, Sadiq al-Kabir, said an agreement had been reached to take action on the exchange rate and reducing fuel subsidies by the end of July. [L5N1T75MB]

Officials with knowledge of the Tunis meeting said the compensation mechanism would be a cash transfer to offset the impact of reducing Libya’s fuel subsidies, which are among the most generous in the world and have led to widespread fuel smuggling.

It is unclear to what extent officials in Tripoli can implement effective economic reform without the backing of eastern factions that support a parallel government and central bank based in Libya’s east.

Previous pledges to act on the exchange rate and subsidies have come to little.

Egypt's annual urban consumer price inflation decreases to 11.4 pct in May - CAPMAS

CAIRO (Reuters) - Egypt’s annual urban consumer price inflation fell to 11.4 percent in May, down from 13.1 percent in April, the official statistics agency CAPMAS said on Sunday, a bigger fall than the International Monetary Fund (IMF) had predicted.

One analyst welcomed the figures as “good news for the markets” and said it could give rise to some speculation of a rate cut by the central bank at the next Monetary Policy Committee meeting, due on June 28.

“Assuming that the numbers are accurate, this is certainly an unexpectedly good development in terms of incoming macro-economic data,” said Allen Sandeep, head of research at Naeem Brokerage.

“Also, (it) comes as a contrasting development versus other emerging economies which are witnessing a steady rise in inflation,” he added.

The IMF said in a report in January it expected inflation to fall to 12 percent by June and to single digits by 2019. It warned against a premature rate cut and urged the Central Bank of Egypt to remain vigilant.

Inflation surged in 2017 on the back of economic reforms tied to a $12 billion IMF loan programme Egypt signed in late 2016 that includes deep cuts to energy subsidies and tax hikes.

Prices soared in particular after the import-dependent country floated its pound currency in November 2016, reaching a record high of 33 percent in July 2017, though inflation rates have since gradually eased.

Congo mining code regulations signed into law - aides

KINSHASA (Reuters) - Regulations to implement Congo’s new mining code have been signed into law with no changes, advisers to the prime minister told Reuters on Saturday, despite objections from mining firms that have been threatening legal action.

Prime Minister Bruno Tshibala signed the regulations into law overnight, his adviser Patrick Mutombo Buzangu told Reuters by telephone, but gave no further details.

The prime minister’s legal counsel Anita Lwambwa later confirmed that none of the changes being demanded by the mining industry had been made.

“The decree fully implements the mining code promulgated by the President of the Republic in March,” she said.

Mines Minister Martin Kabwelulu had told Reuters on Friday that no concessions would be made to the mining industry, which has demanded that key provisions be amended.

Congo is Africa’s top copper producer and the world’s leading miner of cobalt, an element which has seen a surge in demand to make batteries for electric cars.

Enacting the code is likely to trigger a legal battle between Congo and major mining companies, including Glencore and Randgold. The miners say the tax hikes and the removal of exemptions for pre-existing operations are a breach of their agreements with the government.

The new code, signed by President Joseph Kabila in March, axes 10-year protections for existing projects against changes to the fiscal regime, imposes a windfall profits tax and raises royalties.

Glencore faces additional legal challenge over Congo mine

DAKAR (Reuters) - A Congolese-American businessman is seeking more than $1 billion in a Congo court from two Glencore executives and their ex-partner in a copper and cobalt mine, saying they defrauded him when he relinquished his shares, a court document showed.

In a statement on Friday, Glencore denied Charles Brown’s allegations, made in a summons in March, against Glencore CEO Ivan Glasenberg and senior executive Aristotelis Mistakidis. It said the company had had “no interactions whatsoever with Mr. Brown” and that his accusations are “vexatious and baseless”.

Brown’s lawyer Camille Kosi’isaka provided the document, which none of the parties commented publicly on at the time, to Reuters on Friday.

Glencore said it understands that Brown sold his indirect shares in the Mutanda copper and cobalt mine in southeastern Democratic Republic of Congo to Glencore’s former partner on the project, the now-defunct Groupe Bazano, in 2004 and 2005. That was before Glencore purchased its initial stake in the mine in 2007. Glencore is now the sole owner of Mutanda.

Brown’s claim says he sold it in 2012.

His suit is the latest legal headache in Congo for Glencore, which is also locked in disputes with state miner Gecamines over a copper and cobalt project and its former partner in Mutanda Israeli billionaire Dan Gertler..

Glencore is also threatening legal action against a new mining code, signed into law in March, that raises taxes and royalties on operators and eliminates 10-year exemptions they previously enjoyed against changes to the fiscal regime.

Alex Hamze, the former director of Groupe Bazano, who is the other defendant named in the summons, could not be reached for comment at the number listed for him in a chamber of commerce directory.

In the summons, which was filed with a court in Congo’s capital, Kinshasa, Brown alleged that he sold his 19.12 percent stake under duress in 2012.

He said he was sequestered in a law office in Kinshasa on May 9, 2012 and forced to sign over his shares to Groupe Bazano “with violence and threats” and received only $6.39 million. Brown claims the shares are worth over $1.1 billion.

Brown did not specify the role Glasenberg, Mistakidis and Hamze are alleged to have played except to say that they were “acting as either instigators, authors, co-authors or accomplices”.

Glencore purchased Bazano’s stake in Mutanda less than two weeks later on May 22, 2012.

“Glencore denies the allegations made by Mr. Brown relating to Glencore, any member of its group and any of its officers and employees,” the company said.

It added that Brown has had four binding judgments against him in Congo regarding the transactions in question.

Kosi’isaka declined to respond to that charge. The next hearing in the case is scheduled for July 2 in Kinshasa, he said.

Botswana cancels plans to sell troubled power plant to Chinese firm

GABORONE (Reuters) - Botswana has scrapped talks to sell a power station plagued by technical problems to a state-owned Chinese company linked to the plant’s builder, an official document seen by Reuters showed.

The 600-megawatt coal-fired Morupule B plant, which was commissioned in 2012 and built by China National Electric Equipment Corporation (CNEEC) at a cost of $970 million, has often broken down, leading to a reliance on diesel generators and imports from South Africa.

Botswana has been in exclusive negotiations since November 2016 to sell the plant to state-owned China Machinery Engineering Corporation (CMEC), which is related to CNEEC.

In a notice seen by Reuters on Friday, the African country’s Public Procurement and Asset Disposal Board (PPADB) said it had approved a request from the Ministry of Energy to cancel the sale tender.

“The board has approved the request for authority to cancel the tender for divestment of government of Botswana and Botswana Power Corporation (BPC) financial interest in Morupule B,” read the notice.

Government officials were not immediately available to comment.

Power generation at Morupule B has improved in the last year due to remedial works and it currently operates at about 81 percent capacity, helping the power utility reduce imports.

Botswana has a maximum electricity demand of 520 MW, which is seen rising by 65 percent in the next seven years to 856 MW in 2025.

Cancellation of the Morupule B tender comes after a planned $800 million expansion of the coal-fired power plant by Japan’s Marubeni Corp and South Korea’s Posco Energy stalled due to a disagreement over terms.

S.Africa's Murray & Roberts asks antitrust body to restrict ATON voting rights

JOHANNESBURG (Reuters) - Murray & Roberts said on Friday it had asked South Africa’s competition authorities to stop its biggest shareholder from fully exercising its voting rights that could be use to block its tie-up with rival construction firm Aveng.

Murray & Roberts, a major South African construction firm, has been in tug of war with its top investor ATON since March when the German investment house launched a $400 million takeover bid, which was rejected as poor value for shareholders.

To ward off ATON, which had taken the offer directly to shareholders, Murray & Roberts proposed an all-share merger with rival Aveng last month.

“We have applied to the Competition Tribunal to restrict ATON’s voting rights on the deal to the shareholding they had before they made the offer,” said Murray & Robert’s spokesman Ed Jardim.

When it first made the offer in March, ATON - led by German investor Lutz Helmig - held roughly 29 percent of Murray & Roberts. It has since raised that roughly 44 percent - large enough to scupper Murray & Roberts-Aveng tie-up.

The deal needs backing from shareholders with 75 percent of the voting rights, and ATON is against it.

Separately, ATON said it would oppose Murray & Roberts’ application.

“The application is another attempt by Murray & Roberts to frustrate ATON’s offer,” ATON said in a statement.

Gold prices tread water ahead of G7, U.S. Fed meetings

BENGALURU (Reuters) - Gold prices held steady on Friday as investors remained cautious ahead of a G7 meeting starting later in the day and other key events next week such as a United States Federal Reserve policy meeting and a U.S.-North Korea summit.

Spot gold was steady at $1,296.36 per ounce by 0415 GMT. It hit a one-week high of $1,303.08 an ounce in the previous session and has risen about 0.3 percent for the week so far.

U.S. gold futures for August delivery fell 0.2 percent to $1,300.40 per ounce.

“Gold is most likely going to be range bound. The markets are looking very closely on what could actually come out from the G7 meeting,” said OCBC analyst Barnabas Gan.

Leaders of the Group of Seven rich nations headed for a summit in Canada on Thursday more divided than at any time in the group’s 42-year history, as U.S. President Donald Trump’s “America First” policies risk causing a global trade war and deep diplomatic schisms.

President Donald Trump is set to meet North Korean leader Kim Jong Un on June 12 in Singapore, and the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) starts its two-day meeting on interest rates on the same day.

The number of Americans filing for unemployment benefits unexpectedly fell last week, pointing to a further tightening in labour market conditions and strengthening prospects of an interest rate hike.

“The market is also looking for a potential rate hike by the FOMC ... (but) the dollar movement will dictate how gold will move into the next one week or so,” Gan added.

Gold is highly-sensitive to rising U.S. rates as these tend to boost the dollar, putting pressure on greenback-denominated, non-yielding bullion.

The dollar index, which measures the greenback against a basket of six major currencies, was up 0.1 percent at 93.458. It fell to a three-week low in the previous session. [USD/]

In other precious metals, spot silver fell 0.1 percent to $16.64 an ounce, after marking an over 6-week high on Thursday. It was heading for a nearly 2 percent rise this week, its biggest in seven weeks.

Palladium was little changed at $1,012 per ounce. It had also risen to an over 6-week high in the previous session and was on course for its third consecutive weekly gain this week, up over 1 percent so far.

Platinum was down 0.3 percent at $894.20 an ounce and was on course for a small weekly decline.

South African rand slumps to near 6-month low, bonds weaken

JOHANNESBURG (Reuters) - South Africa’s rand slumped more than 2 percent to a near six-month low against the dollar and government bonds weakened sharply on Friday, dragged down by weak economic growth and global investors shying away from riskier assets.

At 0844 GMT, the rand traded at 13.2400 per dollar, 1.7 percent weaker than its close on Thursday, after earlier falling more than 2 percent to session low of 13.2875.

The currency was at its weakest level against the dollar since Dec. 18, Thomson Reuters data showed, extending losses suffered in the previous session.

The yield for the benchmark government bond due in 2026 rose 21 basis points to 9.04 percent, its weakest since December.

Wider appetite among investors for riskier assets has waned on bets that Europe’s massive monetary stimulus is nearing an end, compounded by uncertainty over trade relations ahead of a key meeting of global leaders.

Analysts said the local unit suffered the most as sentiment was also hurt by concerns over the economy.

“Although there was broad-based weakness in EM, the rand was one of the worst-performing currencies, as peers raised interest rates and concerns around South Africa’s current account deficit grow,” Rand Merchant Bank economist Mpho Tsebe said in a note.

“At the same time, (first quarter) GDP figures and April’s manufacturing data were disappointing.”

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

NKC African Economics analysts said the rand’s performance also reflected “waning ‘Ramaphoria’”, referring to optimism around the election of President Cyril Ramaphosa in February.

After Jacob Zuma was forced out as leader by the ruling party in February, Ramaphosa pledged to clean up governance, deal with high unemployment and improve basic services, igniting a wave of optimism.

But the recent poor economic data has eroded some of the enthusiasm in Africa’s most industrialised economy.

On the stock market, the Top-40 index was down 0.6 percent while the broader all-share fell 0.5 percent.

Bidvest, seen a barometer for the South African economy, topped the decliners list on the benchmark index, falling nearly 3 percent. Shortly after the market closed on Thursday, the industrial group said trading profit was growing at a slower pace than reported in December.

Legal & General targets climate change laggards

Legal and General Investment Management (LGIM) has said it will take action against companies that are not addressing the risks of climate change.

LGIM, one of the biggest investment funds in Europe, said it would exclude offending firms from its Future World index fund.

Where those firms featured in its other equity funds, it would vote against re-electing the chairs of their boards.

China Construction Bank and Russia's Rosneft were among the worst, it said.

"China Construction Bank remains the world's largest funder of coal mining and plants," LGIM said.

"While the company has increased its lending to green projects, it does not disclose the total [greenhouse gas] emissions associated with its business."

Rosneft, the Russian oil giant, was branded a laggard for producing a 144-page sustainability report that did not mention "climate change" once.

"This provides little reassurance that the company is planning for a world that must use less of its main product," LGIM said.

LGIM's Future World range of investments also includes the first fund aimed at encouraging gender diversity among UK firms, the Gender in Leadership UK Index Fund (GIRL), which was launched last month.

Among the firms that LGIM considers leaders on climate change is Nestle, which has set targets to reduce greenhouse gases by 2020 in line with the Paris Agreement.

The food giant discloses those targets and how it is performing against them.--BBC

Rolls-Royce refuses to confirm or deny 4,000 job cuts report

Rolls-Royce has refused to confirm or deny claims that it is set to axe more than 4,000 jobs as part of efforts to cut costs and boost profits.

The Sunday Times has reported that middle managers and back-office staff are to be "culled", dealing "a devastating blow to its Derby base".

Rolls-Royce has previously said it is restructuring to reduce costs, and will give details this Friday.

However, it said it would not comment "on current media speculation".

'Fewer layers'

Rolls-Royce said in a statement: "In January, we announced a simplification of our business and began work on a restructuring of our support and management functions.

"We are proposing to move to a considerably simplified staff structure, with fewer layers and greater spans of control across the group."

Specialist restructuring firm Alvarez & Marsal is supporting Rolls-Royce with the programme.

Rolls-Royce said the programme would deliver "a significant reduction in costs" and improve performance, and details would be given at an event for "financial analysts and investors" on Friday.

"We are not commenting on current media speculation about the potential impact," it said.

In February 2017 the jet engine-maker reported a record loss of £4.6bn.

However, in June 2017 it said 7,000 jobs had been safeguarded in the East Midlands for five years due to significant investment in its Derby base.--BBC

G7 summit: War of words erupts between US and key allies

A war of words has erupted between the US and its G7 allies, hours after the group had put on an apparent show of unity at the end of a tense summit.

US President Donald Trump has continued his personal attacks against Canadian Prime Minister Justin Trudeau, tweeting that he "acts hurt when called out".

Germany's Angela Merkel said Mr Trump's decision to reject a joint communique was "sobering" and "depressing".

That statement had sought to overcome deep disagreements, notably over trade.

What's happening in this G7 picture?

Trump prefers unscripted Kim summit to G7 ritual

In recent weeks, trading partners of the US have criticised new tariffs on steel and aluminium imports imposed by the Trump administration.

The politics of the old and the politics of the new clashed exquisitely this weekend.

In Quebec at the G7 (the traditional way of doing things) the sherpas, political advisers and draftsmen toiled through two nights to find a form of words that all sides could sign up to.

I left before the end of the summit to embark on a marathon journey from Canada to Singapore.

When I left Quebec all the talk was there would be no agreement. But lo, by the time I landed in Hong Kong to change flights I read that there was a joint communique. Success. Only to see a tweet from Donald Trump a little later rescinding his signature over something Justin Trudeau had said at his news conference. Unbelievable.

In a news conference after the summit, the Canadian leader reasserted his opposition to the US tariffs, and vowed to press ahead with retaliatory moves on 1 July.

"Canadians are polite and reasonable but we will also not be pushed around," he said.

Mr Trump responded by tweeting en route to his next summit, in Singapore, that he had instructed US officials "not to endorse the communique as we look at tariffs on automobiles".

He said the move was based on Mr Trudeau's "false statements... and the fact that Canada is charging massive tariffs to our US farmers, workers and companies".

>From Singapore itself, he tweeted on Monday morning:

His top economic adviser, Larry Kudlow, and trade adviser, Peter Navarro, attacked Mr Trudeau earlier on Sunday news shows.

"He really kind of stabbed us in the back," Mr Kudlow said, while Mr Navarro said: "There is a special place in Hell for any leader that engages in bad faith diplomacy with President Donald J Trump and then tries to stab him in the back on the way out the door."

Canada's Foreign Minister Chrystia Freeland responded by saying Mr Trump's argument for imposing tariffs on Canadian steel and aluminium was "absurd and frankly insulting to Canadians".

Mr Trump has cited national security as his reason, telling a news conference on Saturday that "to have a great military you need a great balance sheet".

Canada, she said, is "the closest and strongest ally the United States has had. We can't pose a security threat to the United States and I know that Americans understand that".

Other G7 partners also seemed stunned by Mr Trump's reaction, and pledged to support the communique.

French President Emmanuel Macron said international co-operation could not be "dictated by fits of anger and throwaway remarks".

"Let's be serious and worthy of our people," a statement from the French presidency said. "We make commitments and keep to them."

What is in the joint communique?

In the communique after the summit in La Malbaie, Quebec province, the group of major industrial nations - Canada, the US, the UK, France, Italy, Japan and Germany - had agreed on the need for "free, fair, and mutually beneficial trade" and the importance of fighting protectionism.

Other agreements reached include:

*         Russia: A joint demand that Moscow "cease with its destabilising behaviour" and withdraw its support for Syrian President Bashar al-Assad

*         Iran: A pledge to "permanently" ensure Tehran's nuclear programme remains peaceful

*         Climate: An agreement to disagree. The US refused to sign a pledge to implement the Paris climate change accord after Mr Trump announced the US would pull out of the agreement

*         Female education: To provide $2.9bn (£2.2bn; €2.5bn) to fund education for the world's poorest girls and women

*         Mr Trump's twitter attack on Mr Trudeau came minutes after the communique had been published.

What are the tariffs?

On 1 June, the US imposed a 25% tariff for steel and 10% for aluminium on imports from the European Union (EU), Canada, and Mexico. Mr Trump said the move would protect domestic producers that were vital to US security.

The EU then announced retaliatory tariffs on US goods ranging from Harley-Davidson motorcycles to bourbon. Canada and Mexico are also taking action.

A looming row over trade

What is a trade war?

How allies are retaliating against Trump

What is the G7?

It is an annual summit bringing together seven major industrialised nations which represent more than 60% of global net worth between them.

Economics tops the agenda, although the meetings now always branch off to cover major global issues.

Russia was suspended from the group - then called the G8 - in 2014 because of its annexation of Crimea from Ukraine.

On Friday, Mr Trump made a surprise call for Moscow to be readmitted but German Chancellor Angela Merkel said other members were against the idea.--BBC

Vietnam protesters clash with police over new economic zones

Demonstrators clashed with police in Vietnam in protests against plans for new economic zones that some fear will be dominated by Chinese investors.

Police reportedly detained more than a dozen people in the capital Hanoi and halted demonstrations in other cities.

Some carried anti-China banners, including one reading: "No leasing land to China even for one day."

The government proposed a law last year that would give foreign investors a 99-year lease on Vietnamese land.

The bill offers them greater incentives and fewer restrictions, in an attempt to promote growth in target areas.

The protesters suspect that the communist government will award Chinese investors leases in the three economic zones in the north-east, south-east and south-west of the country, and that this would be a pretext for Chinese control over the island of Van Don near their shared border.

China once colonised Vietnam, the two countries fought a border war less than 40 years ago, and Vietnam contests Chinese control of a number of islands in the South China Sea.

As a result, says BBC South East Asia correspondent Jonathan Head, Vietnam's leaders must always tread a delicate line between maintaining relations with their powerful neighbour, and avoiding provoking anti-Chinese sentiment in a fiercely nationalist population.

This is the biggest challenge for Vietnam's Prime Minister Nguyen Xuan Phuc since his government was sworn in more than two years ago with a pledge to stamp out corruption and revitalise the economy.

The three special economic zones are meant to be "mini Singapores" - business-friendly environments complete with high-tech hubs.

But Mr Phuc appears to have underestimated deep-seated resentments against China, and the speed at which protesters can utilise social media to organise street marches in cities including Hanoi and Saigon.

While some are fearful of a perceived Chinese influence in Vietnam under the economic zone proposals, others are concerned about plans for a new cyber security bill. The latter has angered Facebook users in particular, who fear the authorities will be given too much power, while online surveillance could become the norm.

Next week, two parliamentary sessions - on 12 and 15 June - are scheduled for voting on the two draft bills and protesters have said they will take to the streets again until - or unless - the government abandons them both.

Vietnam won a naval battle against a Mongolian fleet off Van Don island in 1287, and some Vietnamese people fear their government will give it away amid tensions between the two countries over disputed territory in the South China Sea.

Why is the South China Sea contentious?

US: China is 'intimidating neighbours'

Prime Minister Nguyen Xuan Phuc last week told local media the 99-year term would be reduced, although he did not specify the new length.

And on Saturday, the government announced a vote on the draft legislation would be delayed to allow further scrutiny.

Demonstrators are also objecting to a cyber security bill, scheduled for a vote on 12 June. Human Rights Watch says it would give the government broad powers to quash dissent online.

Roughly $5 trillion worth of global trade passes through the South China Sea annually, and a number of countries claim disputed islands in the area.

Vietnam has seen protests over the maritime disputes in recent years, including in 2014, when Chinese citizens fled the country in their thousands after violence targeting foreign-owned businesses.--BBC

Firms will have to justify pay gap between workers and bosses

The country's biggest public businesses may soon have to publish the gap between the pay of their chief executive and an average worker.

Business Secretary Greg Clark says directors of all companies with more than 250 employees will be required to disclose and explain this difference - known as the "pay ratio".

Equal pay campaigners, business and investor groups welcomed the plan.

But the TUC said it was "a first step" and even tougher rules were needed.

In recent years shareholders have become increasingly vocal over executive pay levels, and have voted against what they see as excessive pay awards, most notably the high sums paid to former WPP boss, Sir Martin Sorrell.

But top level remuneration, particularly chief executives, is often linked to the performance of the share price.

The new rules, as well as introducing the publication of pay ratios, will also require listed companies to show what effect an increase in share prices will have on executive pay, in order to inform shareholders when voting on long-term incentive plans.

Welcome

The plans, which will be presented to Parliament on Monday, follow concerns that some chief executives have been receiving salaries that are out of step with company performance.

Mr Clark said: "Most of the UK's largest companies get their business practices right, but we understand the anger of workers and shareholders when bosses' pay is out of step with company performance."

The plans were welcomed by the Investment Association - that represents UK investment managers - as well as business lobby group the CBI and think tank the High Pay Centre.

Chris Cummings, chief executive of the Investment Association, said investors wanted greater director accountability and more transparency over executive remuneration.

"Investors will expect boards to articulate why the ratio is right for the company and how directors are fulfilling their duties," he said.

The director of the High Pay Centre, Luke Hildyard, said pay ratios could prove useful to investors, workers and society more broadly.

"We hope that [the move] will initiate a more informed debate about what represents fair, proportionate pay for workers at all levels," he said.

The Confederation of British Industry's Matthew Fell said high pay was only ever justified by outstanding performance: "This legislation can help to develop a better dialogue between boards and employees about the goals and aspirations of their business, and how pay is determined to achieve this shared vision."

TUC general secretary Frances O'Grady called for guaranteed places for worker representatives on boardroom pay committees, saying they would bring "common sense and fairness to decision-making when boardroom pay packets are approved".

If approved, the regulations will come into effect from the start of next year, meaning companies will start reporting their pay ratios in 2020.--BBC

The people making money from Fortnite

Video game Fortnite has attracted millions of fans worldwide, including Canadian musician Drake and England footballer Dele Alli.

Free to play, it involves 100 players in a battle royale situation, where combatants fight until one person is left standing.

The last figures released showed 45 million players in total, but that was back in January. A lot has changed since then.

App tracker Sensor Tower says Fortnite has been downloaded on Apple devices more than 30 million times since mid-March.

It managed to generate $296m (£222m) in April from in-app purchases alone. And that's more than double the revenue for February, according to market research firm SuperData Research.

However, creator Epic Games, 40%-owned by Chinese tech titan Tencent, isn't the only one making money out of Fortnite's infectious popularity.

The top gamer

Michael Baty, 28, works at an Asda store near to his Falkirk home. But he's also something of a celebrity, his name spoken in school classrooms and gaming chat forums. That's because he is the top-ranked Fortnite player in the UK.

"When I go out or meet new people, I'm the Fortnite guy - people have heard of me before I meet them."

Strangers' appreciation of Michael's playing style extends to sending him money. "People sometimes donate to me as a player. I've received as much as $100 in one-off donations."

He also receives an income from subscriptions on a site called Twitch, which allows you to stream your games. For each subscriber he earns about $2.50 a month.

Michael plays Fortnite up to 12 hours a day, depending on whether he's working or has other plans, and prefers to focus on enjoying the game.

"I haven't tried to make a full-time living out of it but I think it's a possibility."

The accessory business

Fortnite can be played on a console, PC or through an app. But as well as a device to access the game, most players use a headset.

Turtle Beach is a headset supplier that's seen demand surge. In May, it revealed a 185% rise in annual sales.

"By the third week of January we knew something was going on", says Juergen Stark, Turtle Beach's chief executive, who largely attributes the boost in sales to the popularity of Fortnite.

"The importance of the headset is that it brings the social element - as well as the survival advantage of better communication, and of enhancing the experience with surround sound."

With other game developers taking note of the rise of battle royale concepts, Turtle Beach is expecting its sales to keep growing.

The pro-buddy

For those who want to improve their game, a helping hand can be enlisted in the form of a pro-gaming buddy. This is a player with an impressive record on Fortnite who provides remote coaching and guides clients through the game.

Aaron Hobson is working as a pro-buddy alongside training to be an accountant.

He says he helps with strategy for maximising kills in the game, including developing defensive structures, known as building.

"Building's probably the most critical part of Fortnite. If you can't build and save yourself from getting shot, you'll just get killed."

Aaron charges £7 an hour for his time.

Listings site Bidvine sets out the role of a pro-gamer. "All you need to be a Fortnite Pro Buddy is a strong wireless connection, a PS4, Xbox 1 or a gaming PC. Oh - and at least 25 wins!"

It suggests a charge of up to £30 per hour, but invites potential pro-buddies to set their own rates.

The streaming service

Big corporations are now getting in on the act too, in the form of live streaming, as growing numbers of people want to watch others' games.

Facebook has launched Fb.gg, to compete with Amazon-owned Twitch and Google-owned YouTube. There's a key reason: the young viewers are a big draw for advertisers.

In April, a game joined by Drake racked up 635,000 concurrent views.

As Turtle Beach's Juergen Stark says: "It's more than a game... it's a place to hang out."--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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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