Major International Business Headlines Brief::: 13 June 2018

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Major International Business Headlines Brief::: 13 June 2018

 


 

 


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*  Zimbabwe owes SAA $60m in plane ticket sales

*  China's Tsingshan mulls $1 billion steel plant in Zimbabwe

*  Tharisa deepens Zimbabwe exposure with platinum deal

*  South Africa's rand slips to 6-month low ahead of economic data

*  Glencore unit Katanga settles DRC Congo dispute, shares surge

*  IMF says S.Africa should spell out land reform plans to remove
uncertainty

*  African Trade Insurance sees annual portfolio doubling to $7 bln in 2022

*  More creditors give South Africa's Steinhoff breathing space

*  Angola's top diamond mine says underpricing has cost it almost $500 mln

*  Vedanta to double output at Zambia's Konkola Copper Mines: regional CEO

*  South African refinery could run out of natural gas in two years

*  CBI chief: Car firms face Brexit extinction

*  Judge clears AT&T takeover of Time Warner

*  China's telco giant ZTE sees shares collapse 39%

*  Tesla to slash thousands of jobs in profitability drive

*  Yahoo fined £250,000 over cyber-attack

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Zimbabwe owes SAA $60m in plane ticket sales

Zimbabwe is among the top five countries in the world struggling to
repatriate airline ticket revenues, with the International Air Transport
Association (Iata) saying blocked funds in the country total $76m.

 

Zimbabwe owes the largest chunk of the debt to South African Airways (SAA).

 

About $60m in SAA ticket sales remain unrepatriated from that country.

 

Given SAA’s precarious position, the airline is now turning to high-level
government assistance to get Harare to pay up.

 

The only countries whose debts exceed that of Zimbabwe are Venezuela
($3.78bn), Angola ($386m), Sudan ($170m) and Bangladesh ($95m), Iata says.

 

President Emmerson Mnangagwa’s government was trying to stitch together a
plan to settle part of the SAA debt in a bid to stave off diplomatic
pressure from its South African counterpart and from Iata, sources in Harare
said.

 

SAA dominates the lucrative Harare-Johannesburg route, flying five times a
day.

 

It also flies to Bulawayo, the second largest city, as well as Victoria
Falls, which is a popular tourist destination.

 

However, SAA spokesman Tlali Tlali recently said that the airline was
neither aware of a pending payment nor was it aware of any settlement
agreement on the repatriation of funds from Zimbabwe.

 

Iata

 

Payment of monies due to SAA would not be paid directly into the SAA bank
account, Tlali said.

 

"As part of the industry practice, Iata is the entity collecting monies on
behalf of all airlines operating in Zimbabwe and would distribute to
respective airlines," he said.

 

Zimbabwe has a backlog of payments due to a severe foreign currency crunch
that has been persisting in the country since 2015.

 

Airlines that fly into Zimbabwe include Emirates, British Airways, Ethiopian
Airlines, Kenya Airways, RwandAir and Fastjet. The persistent shortage of
foreign currency over many years has resulted in Harare being unable to
repatriate ticket revenue.

 

In February, the Reserve Bank of Zimbabwe banned Zimbabweans who are
resident in the country from buying airline tickets for relatives who are
based outside the country using the real-time gross settlement system. The
system is a transaction platform between local banks that allows for
immediate payment of goods and services.

 

It is a move that is widely regarded as an attempt to cap the ballooning
debt owed to airlines by the country.

 

Economic commentators said the debt was damaging to Mnangagwa’s
administration, which is positioning itself under the "Zimbabwe is open for
business" banner.

 

In Africa, Angola, Zimbabwe and Sudan combined are currently withholding
more than $632m belonging to airlines that trade in those markets, said an
Iata spokesperson.

 

In August 2017, the South African government pressed the newly elected
Angolan government to pay R850m that it owes to SAA.

 

In the middle of 2017, then finance minister Malusi Gigaba said the airline
was owed R1bn in revenue earned in other African countries, with Angola the
single largest debtor.

 

"We understand that Angola is facing its own difficulties economically, but
so are we and many other countries, so we expect they will continue to
honour the agreements 
 and pay the money due to us," Gigaba told
Reuters.--businessday.co.za

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

 

China's Tsingshan mulls $1 billion steel plant in Zimbabwe

HARARE (Reuters) - China’s unlisted Tsingshan Holding Group on Monday signed
a $1 billion outline agreement with Zimbabwe to build a steelmaking plant
there after completing a feasibility study.

 

President Emmerson Mnangagwa’s government is trying to woo foreign
investors, especially in mining, as part of efforts to revive an economy
that suffered in the later years of Robert Mugabe’s rule.

 

Mines Minister Winston Chitando, who signed the agreement with a Tsingshan
official, said the plant would produce 2 million tonnes of steel a year for
25 years.

 

Tsingshan will carry out the project through its local subsidiary Afrochime,
which produces chrome ore.

 

A flurry of foreign investors have sought opportunities since Mugabe’s
downfall in November, but many appear to be avoiding committing funds until
after elections next month.

 

Zimbabwe’s only integrated steel plant, ZISCO, shut down in 2008 at the
height of an economic crisis and China’s R&F has said it plans to invest up
to $2 billion to revive the operation.

 

 

 

Tharisa deepens Zimbabwe exposure with platinum deal

LONDON (Reuters) - South African miner Tharisa on Wednesday deepened its
exposure to Zimbabwe, saying it had bought a 26.8 percent shareholding in
Karo Mining Holdings for $4.5 million.

 

It also bought chrome business Salene in Zimbabwe in May.

 

In a statement Tharisa said the deal would give it access to an area
covering 23,903 hectares on the Great Dyke of Zimbabwe, containing an
estimated 96 million ounces in platinum group metals.

 

 

 

South Africa's rand slips to 6-month low ahead of economic data

JOHANNESBURG (Reuters) - South Africa’s rand slipped to a 6-month low
against the dollar early on Wednesday, with investors waiting for local
retail sales figures and the U.S. Federal Reserve’s policy decision later in
the day.

 

At 0615 GMT, the rand traded at 13.3650 per dollar, 0.3 percent weaker than
its close on Tuesday.

 

The unit is trading at its weakest level since Dec. 15, according to Thomson
Reuters data.

 

South African assets have been hurt by disappointing first-quarter gross
domestic product data and an unfavourable external backdrop which has seen
global investors pull back from emerging markets.

 

 

Statistics South Africa publishes April retail sales data at 1100 GMT, which
will give more evidence on the performance of the economy at the start of
the second quarter.

 

The Fed is widely expected to raise interest rates for the second time this
year after a move in March, but the bigger question for investors is the
outlook for future monetary tightening amid an ongoing economic expansion.

 

In fixed income, the yield for the benchmark government bond due in 2026 was
up 6 basis points to 9.08 percent, reflecting weaker prices.

 

 

Glencore unit Katanga settles DRC Congo dispute, shares surge

(Reuters) - Democratic Republic of Congo state miner Gécamines will drop
legal proceedings to dissolve a copper and cobalt joint venture with a
subsidiary of Glencore Plc after reaching a settlement with its partner that
includes Gécamines getting a $150 million payment.

 

Glencore unit Katanga Mining Ltd said on Tuesday it had agreed a
recapitalization plan for 75-percent-owned Kamoto Copper Co with Gécamines,
its joint venture partner, involving converting $5.6 billion of Kamoto’s
debt to equity to fix a capital shortfall.

 

Katanga’s shares listed on the Toronto Stock Exchange jumped 23 percent to
C$1.28.

 

Investors have been watching the dispute closely, particularly for any
impact on supplies of cobalt from Congo, which is by far the world’s biggest
producer of the metal used in batteries for electric cars and mobile phones.

 

Gécamines in April started legal proceedings to dissolve Kamoto, blaming
Glencore for high debts that have weighed on the Congo mining company for
more than 10 years.

 

The $150 million payment will be funded by new loans from Glencore, which
owns 86 percent of Katanga.

 

“I consider this is a small price to pay,” said Paul Gait, an analyst at
Bernstein Investment Research.

 

“It de-risks the situation. It shows a commercial discussion can be
conducted rationally and you can come to a solution where both parties can
move forward,” Gait said.

 

Glencore accounts for more than a quarter of the world’s cobalt output, most
of it from Congo, which itself is the source of 60 percent of global
supplies. Any disruption could push up cobalt prices from already historic
highs of near $100,000 a tonne.

 

 

IMF says S.Africa should spell out land reform plans to remove uncertainty

JOHANNESBURG (Reuters) - The International Monetary Fund said on Tuesday
that the South African government should clearly articulate its land reform
plans in order to lift uncertainty weighing on investor sentiment.

 

South Africa’s ruling African National Congress has said it plans to
redistribute land without compensation to address racial inequalities that
persist more than two decades after the end of apartheid. Government critics
have expressed concern that those plans could infringe on property rights.

 

The IMF, which recently completed a mission to South Africa, added in its
statement on Tuesday that the government’s stated priorities of
strengthening governance and promoting employment presented an opportunity
to accelerate economic growth momentum.

 

The IMF currently forecasts that the South African economy will grow 1.5
percent this year.

 

 

 

African Trade Insurance sees annual portfolio doubling to $7 bln in 2022

NAIROBI (Reuters) - African Trade Insurance expects its annual insured trade
and investment portfolio to double to $7 billion within five years, driven
by new members including Ghana and Nigeria.

 

Chief Executive George Otieno said the annual portfolio would rise by $1
billion this year to $3.5 billion and double to about $7 billion by 2022.

 

The investment risk insurer is owned by 14 African nations and other
organisations such as the African Development Bank.

 

It was formed in 2001 with World Bank support to offer insurance for large
investment and financing projects against risks such as sovereign default,
war and insolvency, to spur investment by companies and private equity into
Africa.

 

“We are likely in the next five years to have another 20 countries on
board,” Otieno said in an interview. He said ATI’s net profit grew 55
percent in 2017 to $10 million.

 

Nigeria, which could bring $500 million worth of business to be insured by
ATI once it signs as a member, was expected to complete the membership
process before the end of 2018, he said.

 

Otieno said ATI had encouraged global insurance firms like Swiss Re and
Lloyds of London to take on more exposure on the continent. It partners with
those firms for re-insurance.

 

 

“Some of those international insurers would not touch sovereign risks if we
are not involved,” he said.

 

Major insurance projects on the continent insured by ATI include electricity
generation projects in Kenya and a $200 million mining project in the
Democratic Republic of the Congo.

 

African lenders, including Morocco’s Attijariwafa, are also turning to ATI
to insure their cross-border lending as they look to expand across Africa,
Otieno said.

 

ATI said it would also help investors eyeing Ethiopia insure themselves
against currency risks.

 

Last week Addis Ababa said it would sell stakes in its national airline and
telecom operator to foreigners.

 

The nation of 100 million people has a managed exchange rate and it is
frequently plagued by dollar shortages.

 

“We should be opening an office in Ethiopia within the year,” said John
Lentaigne, ATI’s chief underwriting officer.

 

 

 

More creditors give South Africa's Steinhoff breathing space

JOHANNESBURG (Reuters) - Steinhoff has won more creditor support to give the
South African retailer time to restructure debts totalling 9 billion euro
($11 billion) in a fight for survival.

 

The company, which grew rapidly from a small local furniture outfit to a
multi-national retailer, said on Tuesday that holders of 75 percent, 83
percent and 75 percent of three convertible bonds totalling 2.7 billion
euros had agreed to a debt standstill agreement.

 

Steinhoff revealed holes in its accounts six months ago, shocking investors
who had backed its reinvention, sending its shares crashing and leaving it
scrambling to pay its debts.

 

The creditor support comes nearly a week after Steinhoff won support from
creditor group representing 61 percent of the external debt of two European
businesses used to fund its overseas operations.

 

Creditors have agreed not to enforce their rights until the end of the month
to allow Steinhoff time to clinch a debt restructuring agreement with its
lenders.

 

Steinhoff has so far said all its debt would be reinstated at par and be
given a common maturity date of three years from the completion of the
restructuring agreement.

 

Shares in Steinhoff were up 1.5 percent at 1.31 rand, valuing it around 5.5
billion rand, a reversal in fortunes for the company that was worth 240
billion rand six months ago.

 

($1 = 0.8477 euros)

 

 

 

Angola's top diamond mine says underpricing has cost it almost $500 mln

LUANDA (Reuters) - Angola’s Catoca, the world’s fifth largest diamond mine,
estimates it lost $464 million over the past six years due to a
government-imposed marketing system that obliged it to sell production below
international prices, a company presentation seen by Reuters showed.

 

The figure was presented during a private meeting in March between the
diamond industry and the minister for natural resources and oil, Diamantino
Azevedo.

 

President João Lourenço has vowed to reform Angola’s secretive diamond
industry in order to increase production and improve returns as Africa’s
second largest oil producer looks to diversify its economy.

 

Despite being the world’s fifth-largest producer of diamonds, major
international miners have largely shunned Angola due to unattractive
investment terms.

 

All production in Angola must be sold through state-owned diamond trading
company Sodiam, which makes the stones available to buyers of its choosing.

 

Two industry sources with knowledge of the matter have told Reuters that
under the previous government of Jose Eduardo dos Santos these “preferential
buyers” were often politically connected and able to negotiate prices below
fair value. Producers are not able to sell their diamonds independently.

 

“The current marketing process, where diamonds are sold to ‘preferential
buyers’, destroys the value for the producer (less revenue) and the
government (less tax),” the presentation dated March 16 said.

 

Angola’s state diamond company Endiama, of which Sodiam is a subsidiary, did
not respond to telephone and email requests for comment.

 

According to the presentation, diamonds from Catoca were on average sold for
24 percent below market prices over the last six years up to and including
2017.

 

A spokesman for the Ministry of Natural Resources and Oil confirmed the
presentation had been made to the minister.

 

“The minister declared the necessity to find a more balanced model in which
everyone wins and the producers are not the most impaired,” he said in an
emailed response.

 

The spokesman declined to comment on allegations that preferred buyers were
often politically connected individuals.

 

Russia’s Alrosa and Angola’s state diamond company Endiama each own 41
percent of Catoca, which produces three quarters of all Angola’s diamonds.
LL International Holding B.V. owns 18 percent.

 

Alrosa did not immediately respond to a request for comment. Reuters was
unable to reach LL International Holding B.V.

 

“It does not stimulate producers to increase their production or invest in
exploration,” the presentation adds of the marketing system.

 

Last week, on a visit to the diamond trading city of Antwerp in Belgium,
Lourenço said Angola would shortly unveil a new business framework for the
sector that would help to attract investment and overhaul the current
marketing arrangement.

 

Since taking power in September, Lourenço has moved to open up sub-Saharan
Africa’s third largest economy, pushing a new investment law through
parliament and introducing attractive new terms for the oil and gas
industry.

 

Much of the country’s diamond prospects remain under-explored due to 27
years of civil war and a closed, difficult business environment since
fighting ended in 2002.

 

 

 

Vedanta to double output at Zambia's Konkola Copper Mines: regional CEO

LUSAKA (Reuters) - Vedanta Resources plans to double finished copper
production at Zambia’s Konkola Copper Mines (KCM) to 200,000 tonnes this
year, the CEO of its Zambian unit said on Monday.

 

KCM has ploughed roughly $5 billion into the southern African country’s
copper mines since 2004, including a $1 billion investment package announced
last year to revamp and upgrade some mines.

 

“Last year we produced just under 100,000 tonnes and I want us to get to
200,000 tonnes this year,” Vedanta’s Deshnee Naidoo told Reuters, adding
that KCM is on track to produce 400,000 tonnes of copper a year in the next
few years.

 

Vedanta also plans to invest $300 million in a 300 megawatt (MW) coal-fired
power plant in Zambia and has started pre-feasibility studies, she said.

 

Naidoo, also the head of Vedanta’s Africa Base Metals unit, said the company
is also looking at building another power plant at a zinc refinery at
Gamsberg in the Northern Cape region of South Africa.

 

 

Vedanta is already bringing on new production at Gamsberg, where output
should start within a month, ramping up to full production of 250,000 tonnes
annually in about a year, she said.

 

Naidoo also said that it may not be possible to mine underground in Namibia
when the company’s open-pit operations at Skorpion Zinc become exhausted
around 2020.

 

“As it stands, we might only extend the mine life by another 2-3 years,” she
said.

 

Skorpion is expected to produce about 90,000 tonnes of zinc this year,
reaching approximately 130,000 tonnes by 2020.

 

 

 

South African refinery could run out of natural gas in two years

CAPE TOWN (Reuters) - South Africa’s flagship gas-to-liquids (GTL) refinery
at Mossel Bay could run out of natural gas within two years when offshore
reserves dry up, a senior energy official said on Tuesday.

 

The Mossel Bay GTL plant, one of the world’s largest, is operated by
state-owned national oil and gas company PetroSA, a subsidiary of the
government’s Central Energy Fund.

 

“We are in a position where between 2020 and 2022 we might not have any gas
available,” said Luvo Makasi, chairman of the Fund’s board.

 

He said the Fund was looking to source feedstock elsewhere but did not
provide any details, after PetroSA failed to secure additional gas reserves
in a $1 billion offshore drilling campaign.

 

The drilling campaign, which was discontinued after poor results, was
stopped after it found only 25 billion cubic feet (bcf) of gas that could be
commercially extracted, compared with the 242 bcf of gas that was expected
to be found.

 

The Mossel Bay plant, located on the south coast, accounts for around 6
percent of South Africa’s refining capacity but is operating at less than
half of its capacity of 45,000 barrels per day of oil equivalent due to
dwindling reserves.

 

Besides the financial hit PetroSA took from its drilling campaign, Makasi
said it also faced a massive decommissioning bill which could threaten its
financial stability.

 

“That liability is estimated to be about 9.6 billion rand ($729 million),”
he said.

 

Shell, BP, Total, Sasol and Engen are among operators of oil refineries in
Africa’s most industrialised country, which depends on imports to meet
rising demand for refined petroleum products.

 

($1 = 13.1625 rand)

 

 

 

CBI chief: Car firms face Brexit extinction

Sections of the UK car industry face extinction unless the UK stays in the
EU customs union, the president of the CBI has said.

 

Paul Dreschler also said there was "zero evidence" that trade deals outside
the EU would provide any economic benefit to Britain.

 

He blamed a "tidal wave of ideology" for the government's Brexit approach.

 

But the government said it was "focused on delivering a Brexit that works
for the whole of the UK".

 

Tory MPs set for Brexit 'concession' talks

New car models drive UK production growth in April

"If we do not have a customs union, there are sectors of manufacturing
society in the UK which risk becoming extinct," Mr Dreschler said.

 

"Be in no doubt, that is the reality."

 

He told BBC Radio 4's Today programme the car industry in particular would
suffer unless we get "real frictionless trade".

 

Mr Dreschler, who is due to step down from his role next week, said greater
costs caused by the imposition of trade tariffs and delays at the border
would affect not only individual companies, but also the entire supply
chain.

 

He added that the UK would be much better using the scale of the EU to
negotiate trade agreements than going it alone.

 

"There's zero evidence that independent trade deals will provide any
economic benefit to the UK that's material. It's a myth," he said.

 

'Lack of clarity'

Delays to business investment were also affecting the UK economy, he said.

 

"We already know tens of millions, in fact hundreds of millions have been
invested by UK pharmaceutical and finance companies to create continuity
post a worse-case Brexit scenario. Tens of millions. What could we have done
with that money?" Mr Dreschler said.

 

The government has not given business the necessary clarity to make
investment decisions, he said.

 

"We have a negotiation within the UK government that's gone on for nearly
three years.

 

"We still haven't got clarity about the future direction, about where we're
heading, what will the future relationship with Europe be, at a level of
detail that matters for investment."

 

However, a spokesperson for the Department for Exiting the EU (Dexeu) said
the government was "focused on delivering a Brexit that works for the whole
of the UK - including businesses across the economy".

 

"We have laid out our approach to our withdrawal and future relationship
with the EU in 14 detailed papers we published last summer, numerous
speeches given by the prime minister and cabinet ministers, and the
technical notes and slides we published in recent weeks.

 

"We'll soon publish a White Paper with detailed explanations of our ambition
for a future relationship with the EU - building on the positions set out by
the prime minister," the spokesperson added.

 

'Brexit gains'

Brexit campaigner Prof Patrick Minford, of the Economists for Free Trade
group, said the CBI was "the voice of the large industrial vested interests
that oppose the competition and productivity growth that free trade under
Brexit will bring, as well as the fall in consumer prices that goes with
it".

 

"It also opposes lighter regulation that enables small businesses to compete
with the big CBI incumbents. Also it loves cheap unskilled EU labour instead
of having to use and train UK workers.

 

"The CBI has a long history of opposing good economics: from monetarism,
through union reform, to leaving the ERM. It even wanted us to join the
euro.

 

"The outgoing president Dreschler is as wrong as so many of his
predecessors."

 

Professor Minford added: "Precisely what Brexit will do is remove the EU
protectionism and excessive regulation that is holding back our economy, not
just in trade but in bold innovation generally, in bio-technology, in AI, in
energy, in finance and much else.

 

"The gains from our potential free trade agreements are well documented. Our
calculations put them at 4% of GDP," he said.--BBC

 

 

 

Judge clears AT&T takeover of Time Warner

Daniel Petrocelli, lead attorney for AT&T and Time Warner, speaks with the
media outside the U.S. District Court on June 12, 2018 in Washington, DC.

A US district court judge has cleared the merger of telecoms giant AT&T and
media firm Time Warner, in a major defeat for government regulators.

 

The US had sued to block the deal, arguing that it would reduce competition
in pay TV and lead to higher prices for consumers.

 

But Judge Richard Leon rejected those arguments, approving the deal without
conditions.

 

The ruling is expected to lead to other mergers and acquisitions.

 

The lawsuit against AT&T had sent a signal that the Trump administration's
Department of Justice was taking a more hardline stance on such mega-deals.

 

Analysts say the decision will bolster firms such as Comcast - which is
considering bidding for 21st Century Fox assets, including its stake in Sky,
in a challenge to a deal announced between Fox and Disney last year.

 

Comcast in 'advanced stages' of 21st Century Fox bid

Sky takeover battle looms after Hancock clears Fox bid

'Relieved'

Judge Leon's decision comes more than 18 months after AT&T announced in 2016
its plans to buy Time Warner in a transaction then valued at about $85bn.

 

The deal is set to unite AT&T's significant wireless, satellite television
and internet business with Time Warner's media properties, which include HBO
and CNN.

 

Attorney Daniel Petrocelli, who represented AT&T, said the firm expects to
complete the transaction before 21 June.

 

"We're disappointed that it took 18 months to get here, but we are relieved
that it's finally behind us," he told reporters after the decision.

 

The argument

The case comes as the growth of online firms like Amazon and Netflix have
scrambled traditional lines of competition, spurring consolidation and
prompting concerns about monopolies.

 

Are Google, Amazon and others getting too big?

AT&T said the acquisition would give it access to content and advertising
heft that would help it compete with online streaming firms, which have led
to declines in pay-TV subscribers.

 

Government lawyers had argued that the takeover would hurt innovation and
allow AT&T to charge rival providers more for its must-have content - costs
that would ultimately be passed on to consumers.

 

During the trial, they urged the court to block the deal or require the sale
of certain businesses as a condition of approval.

 

Lower prices?

Judge Leon said the US failed to prove the merger would give Time Warner
increased power to negotiate fees for its content.

 

He added that the evidence presented at trial showed the deal would probably
reduce prices for AT&T customers, without leading to greater costs for
subscribers of other services.

 

Judge Leon also said it would be "unjust" for the Justice Department to seek
to put a hold on the deal pending an appeal.

 

Assistant Attorney General Makan Delrahim said the Justice Department was
"disappointed" by the decision, but did not say if it planned to appeal.

 

"We continue to believe that the pay-TV market will be less competitive and
less innovative as a result of the proposed merger between AT&T and Time
Warner," he said in a statement.

 

"We will closely review the Court's opinion and consider next steps in light
of our commitment to preserving competition for the benefit of American
consumers."

 

The AT&T lawsuit is the first time in decades that a government challenge of
a "vertical merger" - involving two companies that do not directly compete -
has gone to court.

 

Open Markets Institute, an activist think tank that opposes corporate
consolidation, said the ruling was a "big loss for the public" and would
lead to an effective duopoly for TV distribution.

 

AT&T had initially sought to argue that the government's opposition was
fuelled by political objections from US President Donald Trump, who
criticised the takeover during the 2016 election campaign.

 

Judge Leon rejected that argument earlier this year.

 

After the decision, Mr Petrocelli said: "We were surprised when the case was
brought and as I said in closing arguments, it's a case that never should
have been brought."--BBC

 

 

China's telco giant ZTE sees shares collapse 39%

Shares in Chinese technology company ZTE plummeted 39% in Hong Kong as
trading in the firm resumed after a two-month suspension.

 

In April, the US Commerce Department found ZTE had violated trade bans with
North Korea and Iran.

 

A ban was placed on the firm that prevented it from buying parts from US
suppliers.

 

The ban forced ZTE to suspend major operations, and trading in its shares in
were halted on 17 April.

 

Last week, the US reached a deal with the Chinese technology giant that
would remove the ban.

 

The deal will involve ZTE paying a $1bn penalty and hiring a US-approved
compliance team. It will also have to replace its management board.

 

ZTE, which is based in Shenzhen, is China's second biggest telecoms maker.
It depends on US-made components for the production of handsets.

 

In Shenzhen, the firm's shares were down 10% in early trade, which is the
maximum allowed on the mainland.

 

The share falls in Shenzhen and Hong Kong were widely expected.

 

The decision to lift the US ban on ZTE has faced sharp criticism from US
politicians, including from some Republicans.

 

US Senate leaders from both side of the political fence are expected to vote
later this week on an amendment to a bill that could block the agreement
between the Trump administration and ZTE.--BBC

 

 

 

Tesla to slash thousands of jobs in profitability drive

Tesla said it plans to cut 9% of its workforce as part of a restructuring
intended to reduce costs and boost profitability.

 

The layoffs at Elon Musk's electric car company come as it tries to increase
production of its Model 3 sedan and turn a quarterly profit this year.

 

Tesla said the more than 3,000 cuts would affect mostly salaried employees,
excluding workers producing its cars.

 

Mr Musk said the job cuts were a "difficult decision".

 

Tesla employed more than 37,000 people at the end of last year.

 

"Given that Tesla has never made an annual profit in the almost 15 years
since we have existed, profit is obviously not what motivates us," he wrote
in an email to employees and posted on Twitter.

 

"What drives us is our mission to accelerate the world's transition to
sustainable, clean energy, but we will never achieve that mission unless we
can eventually demonstrate that we can be sustainably profitable."

 

Musk: No 'bonehead' questions please

 

Last month Mr Musk said the company was planning a wide-ranging
reorganisation that would flatten its management structure.

 

In the email, he said the cuts are aimed at eliminating duplicate roles and
he does not expect them to affect the firm's production ability.

 

Tesla employees based at US DIY chain Home Depot and involved with the home
solar business Tesla acquired when it bought SolarCity are among those
affected, he said.

 

The "majority" of those workers will be offered positions in Tesla's retail
business, Mr Musk added.

 

Michelle Krebs, executive analyst for Autotrader, said the layoffs did not
come as a surprise.

 

"It is clear that Tesla is under tremendous pressure to finally turn a
profit and is attempting to address it by cutting overhead," she said.

 

"Also notable is Tesla is not cutting production jobs at a time when pushing
Model 3s out the door is a top priority."--BBC

 

 

 

Yahoo fined £250,000 over cyber-attack

Yahoo's UK arm has been fined £250,000 ($335,000) by the UK Information
Commissioner's Office (ICO) over a data breach affecting more than 500
million users which took place in 2014.

 

The incident was reported two years later.

 

The firm said "state-sponsored" hackers had stolen personal information,
which included names, emails, unencrypted security questions and answers.

 

The ICO said Yahoo had failed to take appropriate measures to protect it.

 

Yahoo said it did not comment on regulatory action.

 

"The failings our investigation identified are not what we expect or will
accept from a company processing significant volumes of personal data,"
wrote deputy commissioner of operations James Dipple-Johnstone in a blog.

 

"Yahoo! UK Services Ltd had ample opportunity to implement appropriate
measures, and potentially stop UK citizens' data being compromised."

 

'Most notorious'

Around eight million of the affected accounts were believed to belong to
people in the UK.

 

The ICO's investigation also found:

 

The firm failed to ensure that its Yahoo-owned data processor "complied with
the appropriate data protection standards"

It did not ensure that the credentials of employees with access to customer
data were monitored

There was "a long period of time" before the flaws which led to the breach
were discovered or addressed

Verizon acquired Yahoo in 2017 and combined it with AOL to form a company
called Oath.

 

The firm was investigated under the UK 1988 Data Protection Act which
pre-dates the new European data regulation GDPR.

 

Tony Pepper, CEO of Egress Software Technologies, said the data breach would
go down in history as "one of the most notorious" - both because of its size
and the two-year period between the attack and the report.

 

"Although the fine has been a long time coming, I imagine there would be
some sighs of relief that the investigation was carried out under the Data
Protection Act, rather than the GDPR which has much tougher consequences for
a breach," he said.--BBC

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


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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