Major International Business Headlines Brief::: 19 June 2018

Tue Jun 19 10:38:08 CAT 2018

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Major International Business Headlines Brief::: 19 June 2018

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

*  CAR struggling to resume diamond exports, tax revenue lags

*  S. African insurer Liberty to be quizzed by regulator over cyber attack

*  S.African watchdog limits M&R's shareholder ATON's voting rights

*  Kenya's Safaricom opposes planned tax increase on mobile cash transfers

*  Kenyan shilling firm on tightening liquidity

*  Trump tariffs: US escalates trade threats to China

*  KPMG's audit work unacceptable, says watchdog

*  Customers were refused phone repairs in breach of Australian law

*  Audi chief Rupert Stadler arrested in diesel emissions probe

*  Debenhams issues another profit warning

*  Stock markets fall amid trade fears

*  Ryanair calls for restricted airport alcohol sales

*  World's Second Largest Advertiser Takes a Stand on Social Media Influencers Who Buy Followers

*  Square shares jump to a record after company gets regulatory green light for cryptocurrency trading in New York

*  JetBlue's founder is reportedly raising $100 million to start a new low-cost airline

 <mailto:info at bulls.co.zw> 

CAR struggling to resume diamond exports, tax revenue lags

LONDON (Reuters) - Despite a partial lifting of a ban on its diamond exports, the Central African Republic (CAR) is struggling to restore sales and seeing only a fraction of the tax revenue it once did, its mining minister said in an interview.

As a member of the 81-nation Kimberley Process which certifies ethical diamond exports, CAR was banned from exporting diamonds in 2013 after rebels seized power.

In 2016, the ban was partly lifted, with CAR allowed to resume sales from five “green zones” from which the then newly-elected government could enforce the Kimberley Process to certify diamonds are conflict-free.

Mines Minister Leopold Mboli Fatrane told Reuters in a telephone interview the country needs more help including training, as the demands of Kimberley Process administration are holding up shipments for between three and six months.

“It’s a country of conflict. The situation has affected a lot of people, notably the mining sector, which is more than 20 percent of the population,” the minister said, adding the country needed flexibility and practical help to enforce the Kimberley Process.

So far this year, Fatrane said official diamond sales of just over $2 million have generated $27,180 in taxes, suggesting the CAR will fall far short of last year’s sales which he said came to around $7.6 million and raised $361,493 in taxes.

Sales peaked at $62 million in 2012.

Beyond official sales, diamonds continue to be smuggled out of the CAR, however, and the east of the country remains under rebel control. The conflict in the CAR escalated in 2013 when mainly Muslim Seleka fighters ousted then-President Francois Bozize, prompting reprisal killings from Christian militias.

The Kimberley Process faces broader challenges, with non-governmental organisations Global Witness and IMPACT withdrawing from a pact they deemed too narrowly focused to fully address human rights abuses.

It also faces competition from the technology that underpins bitcoin. Top diamond producer De Beers, part of Anglo American, is among those using blockchain as a further guarantee to customers that its stones are ethical. [nL8N1PB4GZ]

Kimberley Process members meet this week in Antwerp, Belgium, under the leadership of this year’s chair, the European Union.

Diamonds could help rebuild the CAR’s economy, but it will take time and stones must be fully monitored, EU officials say.

 <mailto:info at bulls.co.zw> 

S. African insurer Liberty to be quizzed by regulator over cyber attack

JOHANNESBURG (Reuters) - Insurer Liberty Holdings faced questions from South Africa’s Information Regulator on Monday, a day after the company said it had become the victim of a cyber attack.

The regulator said it was concerned about the data breach and wanted to meet the insurer to get more details.

Liberty’s shares fell 5 percent on Monday, after the company said on Sunday that an external party claimed to have seized data from the firm and demanded payment.

Liberty said it made no concessions to the hackers and that there was no evidence that any of its customers had suffered any financial losses.

On Monday it said its IT specialists and security personnel had worked around the clock to ensure the protection of its customers and their details.

The regulator said it had written to Liberty’s Chief Executive David Munro requesting information on the extent of the data breach and security measures taken by the company.

“The Information Regulator has noted with concern various media reports regarding a material data breach at Liberty Holdings,” Pansy Tlakula, chairwoman of the regulator, said in a statement.

Shares in Liberty later pared some losses but still closed 4.03 percent lower at 119 rand, their worst daily fall since April 4.

Traders said the market had not panicked over the attack.

“The management did very well to come out and explain their side of the story,” said Cratos Capital trader Greg Davies.

“What they need to do now is assure the market that they’ve spent enough on their defences and that there won’t be a repeat of this.”

Liberty’s biggest shareholder Standard Bank, which has a 53 percent stake, said in an emailed response to questions it was supportive of the measures that Liberty has taken.

However, in neighbouring Namibia, Marieta le Roux, a Liberty Life client since 2011, told Reuters that she had not been informed of the data breach.

“I feel exposed because they have a lot of confidential information about me,” she said.

S.African watchdog limits M&R's shareholder ATON's voting rights

JOHANNESBURG (Reuters) - Murray & Roberts’ proposed deal with rival construction company Aveng could still be blocked by M&R’s biggest shareholder ATON even though South Africa’s antitrust body on Monday limited its voting rights.

M&R, a major South African construction company, has been in tug of war with its biggest shareholder investor ATON since March when the German investment house launched a $400 million takeover bid, which M&R rejected as poor value for shareholders.

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

To ward off ATON, M&R proposed an all-share merger with rival Aveng last month.

M&R also asked South Africa’s competition authorities to stop ATON from fully exercising its voting rights to block its Aveng deal. The proposed Aveng transaction needs backing from shareholders with 75 percent of the voting rights.

The Competition Tribunal said on Monday ATON could fully vote its shares but limited this to 50 percent less one share in the event that attendance at a shareholders meeting on Tuesday was unexpectedly low and that ATON’s voting rights would constitute 50 percent or more of the total votes at the meeting.

“M&R has failed in its attempt to, in ATON’s view, use the Competition Act as a further frustrating action to prevent ATON from voting against M&R’s poison pill – the proposed Aveng transaction,” ATON said in a statement.

M&R spokesman Ed Jardim said M&R had a prescribed number of days to decide if it wanted to appeal. He said the M&R shareholder meeting would go ahead on Tuesday.

M&R shareholders have to decide on Tuesday whether the company can further explore the potential transaction with Aveng. Should this resolution pass by a simple majority, the board will move to finalise the terms of the proposed offer with the board of Aveng and then present a formal offer.

The potential Aveng transaction will be presented to M&R and Aveng shareholders for approval at a later date, if a formal offer is made.

Kenya's Safaricom opposes planned tax increase on mobile cash transfers

NAIROBI (Reuters) - Kenya’s biggest mobile phone operator Safaricom is opposed to a proposed tax rise on mobile phone based cash transfers that its chief finance officer said on Monday would discourage the drive towards modern payments systems.

In last week’s budget speech, Finance Minister Henry Rotich proposed increasing the excise duty on mobile transfers to 12 percent from 10 percent as part of broader measures to raise an extra 27.5 billion shillings ($272 million) in state revenues.

“Increased excise duty on mobile money transfers will negatively impact mobile led transfer services and payments and slow down the government’s drive towards a cash-light economy,” Safaricom’s CFO Sateesh Kamath said.

The government has been encouraging cashless payments to improve security and reduce the risk of fraud.

Kamath said hiking duty on mobile payments would likely mostly hurt the poor, most of whom do not have bank accounts and rely on mobile transfer services like Safaricom’s M-Pesa.

M-Pesa, Safaricom pioneered in 2007, now has more than 26 million users in the East African nation of 45 million, handling billions of shillings in daily transfer volumes. The model has been copied in other regional markets and beyond.

“It would be unfortunate to reverse the gains we have made through mobile led financial inclusion in the past few years,” Kamath said.

Rotich justified the proposed tax increases, which also included a new “Robin Hood” tax of 0.05 percent on bank transfers of above 500,000 shillings, by saying they would be used to fund free health care for all.

The tax proposals in the budget have to be debated and adopted by parliament before they take effect.

($1 = 101.0000 Kenyan shillings)

Kenyan shilling firm on tightening liquidity

NAIROBI (Reuters) - The Kenyan shilling held steady against the dollar on Monday but was expected to strengthen due to tightening liquidity in the money markets increasing demand for the local currency, traders said.

At 1000 GMT, commercial banks quoted the shilling at 101.00/20 per dollar, unchanged from Thursday’s close.

Markets were closed on Friday as it was a public holiday in Kenya.

Trump tariffs: US escalates trade threats to China

US President Donald Trump has threatened to impose tariffs on an additional $200bn (£151bn) of Chinese goods in a growing trade row.

Mr Trump said the 10% tariffs would come into effect if China "refuses to change its practices".

The move would be a major escalation of the dispute. World stock markets have suffered sharp falls as a result.

China responded by accusing the US of "blackmail", raising fears of a full-blown trade war.

Mr Trump insists that China has been unfairly benefiting from a trade imbalance with the US for years.

During the 2016 election campaign, he promised to use tariffs to cut the US trade deficits.

But many economists have warned that tariffs are likely to make products more expensive for US consumers and hurt some of the businesses the administration is trying to protect, which depend on China for parts or assembly.

Asian markets sank on Tuesday in response to the latest news, and European markets also opened lower. Global shares had already fallen on Monday.

What is a trade war and why should I worry?

China vows fast response to US tariffs

How did the latest spat unfold?

Last week, Mr Trump confirmed that the US would impose 25% tariffs on $50bn worth of Chinese goods.

Beijing responded by saying it would hit 659 US products worth $50bn - including agricultural products, cars and marine products - with a similar tax.

Late on Monday, the US president condemned China's "unfair practices related to the acquisition of American intellectual property and technology".

He added: "Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong."

Mr Trump added that new tariffs would "go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced".

"If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200bn of goods."

China's commerce ministry reacted swiftly, saying: "If the US acts irrationally and issues a list, China will have no choice but to take comprehensive measures of a corresponding number and quality and take strong, powerful countermeasures."

G7 summit ends in disarray over tariffs

US tariffs a dangerous game, says EU

One analyst wondered if performance at the polls may be behind Mr Trump's latest move.

Ritu Vohora, an investment director at M&G Investments, told the BBC's Today programme: "There is a lot more at stake here for Trump with the mid-term elections in November.

"China clearly is very much wanting to be this global tech leader so neither side really wants to back down and the real risk here is if Trump continues to push China on systematic changes to its economic model, then that's quite a significant protracted tension we could see in the markets.

"It seems to be a war of attrition at the moment where neither side is willing to bow down to the pressure."

What products are affected?

The US tariffs previously announced affect more than 800 Chinese products worth $34bn in annual trade. They are due to come into effect on 6 July.

The product lines range from aircraft tyres to turbines and commercial dishwashers.

In his latest statement, Mr Trump said that he had asked his advisers to identify additional Chinese products on which to impose new tariffs.

The Trump administration says China encourages transfer of intellectual property - design and product ideas - to Chinese companies, through measures such as requiring that foreign firms share ownership with local partners to access the Chinese market.--BBC

KPMG's audit work unacceptable, says watchdog

The auditing work of one of the world's "Big Four" accounting firms has been sharply criticised by the industry's watchdog.

KPMG audits had shown an "unacceptable deterioration" and will be subject to closer supervision, the Financial Reporting Council said.

The FRC added all the Big Four - which also include PwC, EY and Deloitte - needed to reverse a decline.

KPMG said it was "disappointed" and was taking steps to improve audit quality.

Every year the watchdog reviews the audits of Britain's biggest companies to ensure they meet certain standards. The FRC noted problems at all the firms, but KPMG was singled out for the poor quality of its work.

"There has been an unacceptable deterioration in quality at one firm, KPMG," the FRC said in a statement. "50% of KPMG's FTSE 350 audits required more than just limited improvements, compared to 35% in the previous year."

Stephen Haddrill, head of the FRC, said: "At a time when public trust in business and in audit is in the spotlight, the Big Four must improve the quality of their audits and do so quickly.

"They must address urgently several factors that are vital to audit, including the level of challenge and scepticism by auditors, in particular in their bank audits. We also expect improvements in group audits and in the audit of pension balances."

He said firms "must strenuously renew" their efforts to improve audit quality to meet the legitimate expectation of investors and other stakeholders.

'Taking action'

The increased scrutiny of KPMG will involve the FRC inspecting 25% more audits done by the firm in the 2018-19 financial year, the first time the FRC has taken such action.

Michelle Hinchcliffe, head of audit at KPMG, said: "We are disappointed that our overall audit quality score for our 2016/17 audits has decreased by 4% and that the steps taken in previous years have not resulted in the necessary improvements to audit quality. We are taking action to resolve this."

KPMG came in for criticism over its audit of collapsed construction firm Carillion earlier this year, and the FRC has opened an investigation into the group under the Audit Enforcement Procedure.

The auditor was also recently fined £3.2m by the watchdog over its audit of insurance firm Quindell. Last year, the FRC opened an investigation into KPMG's audit of the accounts of aero-engine maker Rolls-Royce.

Auditors review the accounts of firms to see if the figures are a true and fair reflection of companies' financial health.

But the accounting industry has faced a lot of criticism in the last few years over whether their verdicts on companies' accounts can be trusted.--BBC

Customers were refused phone repairs in breach of Australian law

An Australian court has fined Apple A$9m (£5m;$6.5m) for refusing to fix iPhones and iPads that had been serviced by third parties.

The nation's consumer watchdog took the tech giant to court last year following complaints from users about faulty devices.

Apple admitted that it misled 275 people about their rights to remedies such as repairs and replacements.

The Federal Court of Australia found those actions breached consumer law.

The investigation followed complaints about Apple's so-called "error 53".

The fault rendered iPhones and iPads inoperable, after users downloaded a software update.

But when customers sought repairs, Apple denied some of them assistance because their devices had previously been fixed by a third party, the Australian Competition and Consumer Commission (ACCC) said.

Apple apologises for iPhone 'error 53'

Tech giant to close iPhone security loophole

Apple sorry for slowing down older phones

In many cases, Apple refused remedies even when the third-party repair was for something like a cracked screen and not related to the fault, the ACCC said.

"The court declared the mere fact that an iPhone or iPad had been repaired by someone other than Apple did not, and could not, result in the consumer guarantees ceasing to apply," Commissioner Sarah Court said on Tuesday.

The watchdog said Apple had contacted about 5,000 customers to compensate them for the error.

In 2016, Apple was forced to issue a fix and apologise for error 53 after similar claims.--BBC

Audi chief Rupert Stadler arrested in diesel emissions probe

The chief executive of German carmaker Audi, Rupert Stadler, has been arrested in connection with an investigation into the diesel emissions scandal.

A spokesman for Volkswagen, which owns Audi, confirmed he was being held.

Munich prosecutors said they had acted because of a risk that Mr Stadler might seek to suppress evidence.

The scandal erupted three years ago, when it emerged that cars had been fitted with devices designed to cheat emissions tests.

The devices were initially found in VW's cars, but its Audi subsidiary has also been embroiled in the scandal.

Last month, it admitted that another 60,000 A6 and A7 models with diesel engines have emission software issues.

That is on top of the 850,000 recalled last year by Audi, of which only some have been found to require modification.

Audi admits more diesel emission problems

How VW tried to cover up the emissions scandal

Ex-VW boss charged over diesel scandal

Munich prosecutors said Mr Stadler would be questioned by Wednesday, once he had spoken to his lawyers.

According to German newspaper Sueddeutsche Zeitung, VW's supervisory board has nominated Bram Schot to be the interim chief executive at Audi following the arrest of Mr Stadler.

However, Audi's supervisory board has yet to sign off on the nomination, the paper said.

The so-called dieselgate emissions scandal first came to light in September 2015.

Volkswagen admitted that nearly 600,000 cars sold in the US were fitted with "defeat devices" designed to circumvent emissions tests.

The carmaker said it had installed software in 11 million diesel cars worldwide that could tell when they were being tested and cut their emissions.

On the open road, untested, the level of emissions would in practice be far higher - up to 40 times as bad as recorded under laboratory conditions.--BBC

Debenhams issues another profit warning

Debenhams has said its full-year profits are expected to fall below expectations, the third time this year it has issued a profit warning.

The department store blamed "increased competitor discounting and weakness in key markets" for the profit shortfall.

It said pre-tax profits for the full year would come in between £35m and £40m, below estimates of £50.3m.

Debenhams' latest profit warning comes despite a turnaround plan designed to cut costs and boost sales.

Debenhams' shares fell more than 16% in early trading.

Chief executive Sergio Bucher pointed to "exceptionally difficult times in UK retail", adding: "We don't see these conditions changing in the near future."

Debenhams latest warning adds to a chorus of recent woes on the UK High Street.

House of Fraser, Marks & Spencer and Mothercare have all announced store closures this year.

Third warning

Debenhams said sales had been fallen in May and June thanks to rivals' discounting and weak consumer spending.

Like-for-like sales, which reflect sales at stores open for more than a year, fell by 1.7% in the 15 weeks to 16 June. Digital sales grew 16% over the same period.

Mr Bucher who joined Debenhams in 2016, has launched a turnaround plan, putting more emphasis on food and beauty and less on fashion, limiting promotions and improving the firm's online platform.

However, in January the chain warned profits would be lower this year after a disappointing Christmas trading period.

In April, its chief financial officer left as the retailer warned that the cold weather in late February, known as "the Beast from the East", would eat further into profits.--BBC

Stock markets fall amid trade fears

Stock markets have fallen amid fears of a further deterioration in US-Chinese trade relations.

Tensions in Germany's coalition government over migration policy added to investors' uncertainty.

Wall Street's Dow Jones and S&P 500 were 0.4% and 0.2% down, although shares pulled back from steeper losses.

Earlier, Frankfurt's Dax fell 1.4%, while Paris' Cac fell 0.9%, and Madrid shares slipped 0.8%. The FTSE 100 recovered from early falls to end flat.

It followed a fall on Asian stock markets after US President Donald Trump's decision on Friday to impose 25% tariffs on $50bn worth of Chinese goods.

China retaliated, saying it would impose an additional 25% tariff on more than 600 US products worth $50bn.

There were no signs of the trade row easing on Monday, with US Secretary of State Mike Pompeo calling China's trade practices "predatory economics 101".

In remarks to the Detroit Economic Club, he said statements by Beijing in recent weeks that it was moving to open its economy were "a joke".

Chinese mock Trump over tariffs

Is this Angela Merkel's moment of reckoning?

Earlier, Japan's Nikkei had closed 0.8% lower on Monday, while South Korean shares fell 1.1% and other Asian markets also declined.

However, stock markets in China and Hong Kong were closed for a public holiday.

"Tensions between the US and China are escalating, and we are not any closer to an agreement being reached. With neither side willing to back down, investors are caught in the middle," said David Madden, market analyst at CMC Markets.

Art Hogan, chief market strategist at B. Riley FBR in New York, said: "The trade war is definitely on the front burner right now, and will continue to be in the absence of news catalysts and unless something substantially changes."

European investors are also wary of political factors in Germany, where Chancellor Angela Merkel has clashed with leaders of her coalition ally in Bavaria, the CSU, over her refugee policy.

"With the US-China trade war already creating an uncomfortable trading atmosphere, the brewing political tension between long-time allies the CDU and CSU in Germany has caused some bloody losses in the eurozone," said Connor Campbell, financial analyst at SpreadEx.

Sterling continued to struggle, trading against the dollar at $1.3241 - close to the seven-month low of $1.3205 hit late last month.

The pound has fallen 8% since mid-April as traders become less confident that the Bank of England will follow the US Federal Reserve by raising interest rates in August.

Oil prices gained ground after earlier falls, with Brent crude up more than $1 to $74.50 a barrel despite suggestions that Opec would increase production later this year.

Countries in the oil-producing cartel led by Saudi Arabia - along with other big producers including Russia - will meet in Vienna later this week. Both countries want to boost output.

Commerzbank commodities analyst Carsten Fritsch said: "That production will be increased in the second half of the year is considered certain - the only question is by how much."

Goldman Sachs expected Opec and Russian output to rise by 1 million barrels a day by the end of 2018.--BBC

Ryanair calls for restricted airport alcohol sales

Ryanair has called for more restrictions on alcohol sales at airports.

The airline proposed a two-drink limit for passengers and a ban on alcohol sales in airports before 10:00.

This move comes after a flight from Dublin to Ibiza had to land unexpectedly in Paris on Saturday after three passengers became disruptive.

The three passengers were removed from the plane when it touched down at Paris Beauvais and detained by French police.

"It is incumbent on the airports to introduce these preventative measures to curb excessive drinking and the problems it creates, rather than allowing passengers to drink to excess before their flights," said Ryanair in a statement.

The airline added: "It's completely unfair that airports can profit from the unlimited sale of alcohol to passengers and leave the airlines to deal with the safety consequences."

'Draconian' suggestion

Referring to its own policy on alcohol sales in-flight, Ryanair said very little alcohol was actually sold on board as all of its flights were short haul.

The carrier is Europe's largest low-cost airline, transporting 130m passengers a year, with more than 2,000 flights a day from some 215 airports across Europe and North Africa.

"Our cabin crew are fully trained to deal with customers' alcohol sales and intake," added the airline.

A Dublin airport spokesman said that while the behaviour of some individuals on Saturday's Ryanair flight was "clearly unacceptable", the airline's suggested alcohol restrictions were "draconian".

These would "affect all passengers because of the behaviour of a very, very small minority of airline travellers", said the spokesman.

Last month, Ryanair reported record annual results, with profits after tax rising by 10% to €1.45bn (£1.27bn).--BBC

World's Second Largest Advertiser Takes a Stand on Social Media Influencers Who Buy Followers

Unilever, the world’s second largest advertiser, is breaking from the mold by cracking down on influencers who buy followers.

The owner of brands like Dove soap and Lipton tea, Unilever announced Monday that it would be taking steps to make advertising more transparent.

Chief Marketing Officer Keith Weed explained that “urgent action” is needed to “rebuild trust before it’s gone forever.” This includes a pledge that Unilever will never buy followers or work with social media influencers who do so, while also prioritizing social media channels that work to increase transparency themselves.

“The key to improving the situation is three-fold: cleaning up the influencer ecosystem by removing misleading engagement; making brands and influencers more aware of the use of dishonest practices; and improving transparency from social platforms to help brands measure impact,” Weed said in a statement published by CNBC.

With a reported €7 billion ($8.1 billion) marketing budget, Unilever’s promise is not insignificant. Buying followers has become a growing issue in the influencer marketing space. The more followers an influencer has, the more they are paid, thereby incentivizing the purchase of dummy or bot followers. This in turn has eroded some trust in this type of advertising, while potentially costing a brand a lot of money on advertising that does not reach actual humans.

“There are lots of great influencers out there, but there are a few bad apples spoiling the barrel and the trouble is, everyone goes down once the trust is undermined,” Weed told Reuters.

Square shares jump to a record after company gets regulatory green light for cryptocurrency trading in New York

Payment company Square got the green light from regulators Monday allowing New Yorkers to trade cryptocurrency on the rapidly growing Cash app.

While Square launched crypto trading through its payments app in late January, that feature had been unavailable in New York.

"That was one of the missing pieces in their puzzle," Nomura Instinet analyst Dan Dolev told CNBC. "They had approval in most states, but New York was by far the biggest one where you couldn't trade bitcoin."

The New York State Department of Financial Services granted Square a virtual currency license, which gives the company access to an "expanding and well-regulated virtual currency market," Superintendent Maria T. Vullo said in a statement.

Square, run by Twitter CEO Jack Dorsey, already holds a money-transmitter license from the department.

The app launched in 2015 and is growing at a faster rate than PayPal's Venmo, according to Nomura Instinet. Since early 2016, downloads on Square Cash app downloads averaged 128 percent year-over-year growth each month versus Venmo's 74 percent growth, according to Nomura.

The department approval could boost already rapidly-growing downloads, and expand what users can do with the Cash app, Dolev said.

"This announcement gives people another excuse to download the app," he said, adding that it might not move the bottom line right away but "definitely helps from a marketing perspective."

Shares of the company have surged 88 percent this year, and hit a record around $65 Monday, up more than 2 percent on the day.

The fintech company had 7 million active customers on its money-transfer app in December alone, Square said in its recent quarterly letter to shareholders. Many of those customers have been using the Cash app more like a bank account than the company intended, Dorsey said in May.

While that wasn't a goal, Dorsey said Square plans to "lean into" the trend, and has already signaled plans to break into banking.

Square filed for an FDIC license to be an industrial loan company in Utah, American Banker reported in September. The license would allow it to perform some of the same services as banks, including issuing loans without having to rely on a bank to originate them and without having to get licenses in each state.

Square is the ninth firm approved for cryptocurrency trading in New York. The Department of Financial Services has also granted licenses to companies like Coinbase and Circle and has granted charters to Gemini Trust and Paxos, formerly known as itBit Trust.

The so-called BitLicense has been notoriously difficult to get, and New York is considered one of the strictest states when it comes to regulating cryptocurrency firms.--cnbc

JetBlue's founder is reportedly raising $100 million to start a new low-cost airline

JetBlue's founder, David Neeleman, is reportedly launching another low-cost airline in the US. According to the trade publication Airline Weekly, Neeleman's new venture is to be called Moxy and will be aimed at smaller secondary airports.

Moxy has already placed orders for 60 Bombardier CS300 airliners and is working to raise $100 million, Airline Weekly reported, citing people familiar with the venture.

Funding for the new airline is expected to come from several sources including the former Air Canada CEO Robert Milton, the former ILFC CEO Henri Courpron, and Neeleman himself.

Neeleman declined to comment on the matter.

According to the trade journal, Moxy plans to commence service in 2020 when Bombardier is to deliver the first of its new airliners. All 60 Bombardier jets are expected to be delivered by 2024.

Moxy will target smaller, lower-cost, secondary airports located near major metropolitan transportation hubs. These include the Stewart and Republic airports near New York City as well as airports in Milwaukee and Gary, Indiana, to service Chicago. Baltimore and Trenton, New Jersey, are also prospective destinations.

Should Moxy get off the ground, it would be latest in a long line of airline endeavors for the Brazilian-American serial entrepreneur. Neeleman helped found a series of successful airlines over the past three decades including Morris Air, which was sold to Southwest Airlines; WestJet; JetBlue; and Azul. He's also running Portugal's national airline, TAP.--bbc

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

ZHL

AGM

Ophir Room, Monomotapa Hotel

20/06/2018 2:30pm

ZPI

AGM

206 Samora Machel Avenue

21/06/2018 12pm

RioZim

AGM

Head Office, 1 Kenilworth Road, Highlands

21/06/2018 10:30am

SeedCo

final dividend of 2.95c and special dividend of 1.48c and sets record date

22/06/2018

GB Holdings

AGM

Cernol Chemicals Boardroom, 11 Dagenham Road, Willowvale

26/06/2018 11:30am

MedTech

AGM

Head Office, Boardroom, Stand 619, Corner Shumba/Hacha Roads, Ruwa

27/06/2018 3pm

Dawn Properties

AGM

Ophir Room, Monomotapa Hotel

28/06/2018 10am

NicozDiamond

Scheme meeting

7th Floor, 30 Samora Machel Ave

28/06/2018 10am

ZBFH

AGM

Boardroom, Ground Floor, 21 Natal Road, Avondale

28/06/2018 10:30am

African Sun

AGM

Kariba Room, Holiday Inn Harare

28/06/2018 12pm

FBC

AGM

Royal Harare Golf Club

28/06/2018 3pm

Hwange

AGM

Royal Harare Golf Club

29/06/2018 10:30am

Fidelity Life

AGM

Great Indaba Room, Monomotapa Hotel

29/06/2018 11am

Barclays

EGM to consider the change of registered statutory name to First Capital Bank Limited

Meikles Hotel

03/07/2018 3pm

NicozDiamond

shares delist from the ZSE

06/07/2018

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

 <mailto:info at bulls.co.zw> 

DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

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