Major International Business Headlines Brief::: 22 June 2018
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Major International Business Headlines Brief::: 22 June 2018
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* World Bank approves $455 million loan for Tanzania power projects
* South Africa's rand firmer as technicals, easing dollar offer support
* South Africa coal terminal boosts productivity with $98 million upgrade
* Former CEO of Kenya's Nakumatt faces investigation over loss of funds
* World Bank approves $455 million loan for Tanzania power projects
* Kenya's proposed regulator will not infringe on central bank, finance minister says
* Zambia aiming for power prices that reflect costs by end 2018
* Zimbabwe regulator cuts mobile data tariffs by 60 percent
* Airbus warns no-deal Brexit could see it leave UK
* Greece hails 'historic' debt relief deal
* EU tariffs on US goods come into force
* Hammond: Treasury not the 'enemy of Brexit'
* US banks pass financial stress tests
* US court backs states over web sales tax
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World Bank approves $455 million loan for Tanzania power projects
DAR ES SALAAM (Reuters) - The World Bank has approved a $455 million loan to Tanzania under its International Development Assistance (IDA) programme to support financing of power projects in the East African nation.
The financing from IDA, which gives grants or low-interest loans to the world’s poorest countries, will also fund construction of high voltage transmission infrastructure to connect Tanzania to regional power markets in southern and eastern Africa.
“The $455 million credit will finance construction of critical high voltage transmission infrastructure that will support the electrification of the southern and northwestern regions of Tanzania,” the World Bank said in a statement on Thursday.
The government said it plans to raise 2 trillion Tanzanian shillings ($880 million) in its budget for fiscal year 2018/19 (July-June) from concessional loans and grants to finance development projects.
Tanzania boasts reserves of over 57 trillion cubic feet (tcf) of natural gas, but faces periodic power shortages as it relies on hydro-power dams in a drought-prone region.
Last year President John Magufuli said the country needed to invest $46.2 billion over the next 20 years to revamp its ageing energy infrastructure and meet soaring electricity demand.
Investors have long complained that the lack of reliable power hurts business there.
Tanzania plans to boost power generation capacity from around 1,500 MW currently to 5,000 MW over the next three years by building new gas-fired and hydroelectric plants, according to the country’s energy ministry.
($1 = 2,271.0000 Tanzanian shillings)
<mailto:info at bulls.co.zw>
South Africa's rand firmer as technicals, easing dollar offer support
JOHANNESBURG (Reuters) - South Africa’s rand firmed slightly early on Friday, extending its recovery from a near 7-month low against the dollar hit this week with the help of technical factors and an easing dollar.
South Africa coal terminal boosts productivity with $98 million upgrade
RICHARDS BAY, South Africa (Reuters) - South Africa’s Richards Bay Coal Terminal (RBCT) has boosted productivity and improved turnaround times after a 1.34 billion rand ($98 million) machinery upgrade, the firm said on Thursday, as it reiterated forecasts for record exports this year.
RBCT, Africa’s largest coal export facility, launched the project to replace its ageing machines with the aim of sustaining the terminal’s 91 million tonne capacity, but the process has also increased efficiencies, it said.
“We are already enjoying several operational efficiencies of the new machines,” said RBCT Chief Executive Officer Alan Waller.
The project installed two new rail-mounted stacker reclaimers, which scoop up and transfer coal into and out of the yard and its rail-mounted shiploaders. They in turn transport coal along a conveyer into a ship’s hold.
The two new reclaimers are expected to have a capacity of 6,000 tonnes per hour compared to the previous machines’ 4,500 tonnes per hour, while the shiploader will have 10,000 tonnes per hour capacity compared with 8,000 tonnes per hour previously.
The reclaimers have also cut the amount of bulldozing needed after its coal-carrying arm was extended further into the coal yard from 40 metres to 60 metres, said RBCT project general manager Bill Murphy.
“That means it has a longer reach and there is less bulldozing time. It increases the productivity at RBCT,” said Murphy.
The project also reconfigured the terminal’s five existing electrical substations and added a new substation.
RBCT said it is well on track to reach its export target of 77 million tonnes this year and has already surpassed the levels it had reached last year this time.
“We are probably 1 million tonnes ahead compared to this time last year,” said Waller, without giving specific figures.
The terminal exported a record 76.47 million tonnes of coal in 2017, and aims to export 77 million tonnes this year.
($1 = 13.6300 rand)
Former CEO of Kenya's Nakumatt faces investigation over loss of funds
NAIROBI (Reuters) - The former chief executive of Kenya’s indebted Nakumatt Supermarkets will be investigated over the loss of 18 billion shillings ($179 million) worth of stock, an administrator for the retailer said on Thursday.
Nakumatt went into voluntary supervision earlier this year after seeking protection from its creditors.
Nakumatt, which grew from a mattress shop in a rural town to have branches across Kenya and East Africa, was forced to shut more than a dozen outlets last year as it struggled to repay its suppliers, landlords and other creditors.
Peter Kahi, Nakumatt’s court-appointed administrator, said he would seek a forensic investigator to investigate why Atul Shah, its former chief executive, wrote off stock worth 18 billion shillings in May, before the company ground to a halt.
“I don’t think it is something which happened within a year or a day. Maybe it is a build-up of so many years. Because 18 billion is quite a big sum, just to occur in one day,” he told Reuters by phone.
“Of course that is a big write-off, which according to them (the company) it’s basically pilferage, shrinkages and theft by staff and what ... But now it is for him to explain, since he was the chief executive officer.”
Shah declined to comment and referred Reuters to Kahi when contacted for comment.
When it sought protection in October, Nakumatt had 4,000 staff, but it has closed several outlets since then.
The company sought protection using Kenya’s newly enacted company laws, which provide a pathway for distressed firms to avoid complete collapse.
($1 = 100.7500 Kenyan shillings)
World Bank approves $455 million loan for Tanzania power projects
DAR ES SALAAM (Reuters) - The World Bank has approved a $455 million loan to Tanzania under its International Development Assistance (IDA) programme to support financing of power projects in the East African nation.
The financing from IDA, which gives grants or low-interest loans to the world’s poorest countries, will also fund construction of high voltage transmission infrastructure to connect Tanzania to regional power markets in southern and eastern Africa.
“The $455 million credit will finance construction of critical high voltage transmission infrastructure that will support the electrification of the southern and northwestern regions of Tanzania,” the World Bank said in a statement on Thursday.
The government said it plans to raise 2 trillion Tanzanian shillings ($880 million) in its budget for fiscal year 2018/19 (July-June) from concessional loans and grants to finance development projects.
Tanzania boasts reserves of over 57 trillion cubic feet (tcf) of natural gas, but faces periodic power shortages as it relies on hydro-power dams in a drought-prone region.
Last year President John Magufuli said the country needed to invest $46.2 billion over the next 20 years to revamp its ageing energy infrastructure and meet soaring electricity demand.
Investors have long complained that the lack of reliable power hurts business there.
Tanzania plans to boost power generation capacity from around 1,500 MW currently to 5,000 MW over the next three years by building new gas-fired and hydroelectric plants, according to the country’s energy ministry.
($1 = 2,271.0000 Tanzanian shillings)
Kenya's proposed regulator will not infringe on central bank, finance minister says
NAIROBI (Reuters) - Kenya’s finance minister said a proposed financial-markets regulator will not infringe on the mandate of the country’s central bank, which has complained the new agency would leave it “emasculated”.
The bill proposing the agency aims to deal with predatory lending, Finance Minister Henry Rotich said on Thursday, and the Treasury will take into account the views of the central bank before the draft law is presented to parliament.
“There is no overlap, duplication or contradiction whatsoever,” Rotich told a news conference.
The Financial Markets Conduct bill, published in May by the finance ministry, proposes to create a regulator in addition to the central bank to deal with the conduct of lenders.
The central bank has criticized the bill. Last month, Governor Patrick Njoroge said the bank would be emasculated if the draft bill becomes law [L5N1T027T].
“The bill emasculates the central bank, (which) ... is under attack,” Njoroge told a news conference. It would also leave customers at the mercy of banks by curbing the central bank’s ability to regulate fees and charges, he said.
Zambia aiming for power prices that reflect costs by end 2018
LUSAKA (Reuters) - Zambia plans to introduce electricity tariffs that reflect the cost of production by the end of this year, a senior government official said on Thursday, a move that could increase costs for economically vital mining firms that currently pay a flat price.
In 2015 and 2016, Zambia experienced a critical shortage of electricity of up to 600 megawatts due poor rainfall in a country that relies heavily on hydropower, putting pressure on the government to apply tariffs that reflect costs to raise cash for investment in other energy sources to buoy power supply.
The new measure will affect global mining firms including First Quantum Minerals, Glencore, Barrick Gold Corp and Vedanta Resources which currently pay a flat tariff of 9.30 U.S. cents/kilowatt hour (kWh).
The mining industry brings in around 70 percent of Zambia’s foreign exchange.
The permanent secretary for energy, Emelda Chola, said in a statement at a mining and energy conference that the government had implemented the first phase of the migration by raising the price of electricity last year.
She said members of the regional Southern African Development Community (SADC) - to which Zambia belongs - had agreed to migrate to cost-related tariffs by the end of 2019.
“In addition, Zambia has launched an industry-wide cost of service study, which will determine subsequent tariff adjustments to be made,” Chola said.
First Quantum welcomed the study, saying cost-related tariffs would help attract foreign investment into the power sector, which would be good news as electricity is one of the mining sector’s largest costs.
“It has to be underpinned by an effective and efficient power utility,” First Quantum Head of Government Relations John Gladston told Reuters, referring to the cost of service study.
Mining companies have previously said the cost of electricity in Zambia is much higher than it should be because of inefficiencies at state power company Zesco Ltd.
Chola said Zambia planned to attract private sector investment in renewable energy with a target of developing a total capacity of 200 megawatts (MW) of electricity over a three year period.
Zimbabwe regulator cuts mobile data tariffs by 60 percent
HARARE (Reuters) - Zimbabwe’s telecoms regulator has cut the price of mobile data by 60 percent with effect from next month, it said on Thursday, adding that it will now review charges annually.
Lower prices will likely increase the country’s Internet penetration rate, which the country’s regulator says stood at 50.8 percent last December, as more subscribers find it cheaper to access the Internet.
Data showed Internet traffic doubled between January and December last year, but the price reduction could eat into data revenue for Econet Wireless, the country’s largest operator.
Econet, which accounted for 65 percent of the data market share as of December 2017, said it was reviewing “the impact of the new tariffs on our business.”
The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) said mobile data will cost 5 cents per megabyte, down from 12.5 cents, exclusive of taxes effective July 1.
“The authority took into account the prevailing economic environment as well as the competing needs of ensuring operator viability and service affordability for the consumers,” it said.
POTRAZ said charges by Internet service providers would be determined by the market but imposed a 50 percent cut in the cost of calls between local telecoms companies.
In the full year to end-February, Econet said its data revenue rose 18 percent to $145 million after adding more subscribers.
Airbus warns no-deal Brexit could see it leave UK
Airbus has warned it could leave the UK if the country exits the European Union single market and customs union without a transition deal.
The European planemaker said the warning was not part of "project fear, but its "dawning reality".
Airbus employs about 14,000 people at 25 different sites in the UK.
Last week, the outgoing president of the CBI said sections of UK industry faced extinction unless the UK stayed in the EU customs union.
It brings together the EU's 28 members in a duty-free area, with a common import tariff for non-EU goods.
Prime Minister Theresa May has ruled out staying in the customs union. The UK is due to leave the EU on 29 March 2019.
Special partnership
The UK government is considering two other options: a customs partnership that would remove the need for new customs checks at the border; and a "highly streamlined" customs arrangement that would minimise customs checks rather than getting rid of them altogether.
Michel Barnier, the EU's Brexit negotiator, has said that both options are unrealistic.
A spokesperson for the UK government said: "We have made significant progress towards agreeing a deep and special partnership with the EU to ensure trade remains as free and frictionless as possible, including in the aerospace sector, and we're confident of getting a good deal that is mutually beneficial.
"Given the good progress that we are continuing to make in the negotiations, we do not expect a no-deal scenario to arise."
A Welsh government spokesperson said the Airbus announcement was "extremely worrying".
"We have repeatedly warned that the UK cannot take the huge economic risk of cutting ourselves adrift from the single market and customs union. Particularly in the case of manufacturing sectors, which in Wales are so important in providing high-paid, high-skilled jobs."
Severe disruption
In its Brexit "risk assessment" published on Thursday, Airbus said if the UK left the EU next year without a deal - meaning it left both the single market and customs union immediately and without any agreed transition - it would "lead to severe disruption and interruption of UK production".
"This scenario would force Airbus to reconsider its investments in the UK, and its long-term footprint in the country," it added.
The company, which makes wings for the A320, A330/A340, A350 and A380 passenger planes in the UK, also said the current planned transition period, due to end in December 2020, was too short for it to make changes to its supply chain.
As a result, it would "refrain from extending" its UK supplier base. It said it currently had more than 4,000 suppliers in the UK.
Brexit: All you need to know
Industry sectors face Brexit extinction
'Treasury not the enemy of Brexit'
Tom Williams, chief operating officer of Airbus Commercial Aircraft, said in "any scenario", Brexit had "severe negative consequences" for the UK aerospace industry and Airbus in particular.
Without a deal, he said Airbus believed the impact on its UK operations could be "significant".
"Put simply, a no-deal scenario directly threatens Airbus' future in the UK."
Mr Williams told the BBC's Today programme that Airbus was currently working on developing the "next generation" of aircraft wings in the UK.
"We are seriously considering whether we should continue that development or whether we should find alternative solutions," he added.
Conservative MP Stephen Crabb said the warning from Airbus should be a "wake-up call".
Mr Crabb tweeted: "The enormous Airbus factory in North Wales is one of the jewels in the crown of UK manufacturing. This is a wake-up call. A pragmatic, sensible Brexit that protects trade & jobs is vital."
And shadow Brexit secretary Sir Keir Starmer tweeted: "If proof was needed that the PM's Brexit red lines need to be abandoned (and fast), this is it."
Frictionless trade
The warnings from Airbus echo comments made on Wednesday by the boss of Siemens in the UK.
Jürgen Maier said the UK should remain in the customs union after Brexit unless there was a "proper alternative".
Last week, Paul Drechsler, the outgoing president of the CBI, said some parts of industry in the UK faced extinction if the country left the EU customs union.
Paul Drechsler said car firm bosses had come to him saying the industry would suffer unless there was "real frictionless trade".
Mr Drechsler also said there was "zero evidence" that trade deals outside the EU would provide any economic benefit to Britain.--BBC
Greece hails 'historic' debt relief deal
Eurozone countries have agreed a long-awaited debt relief deal for Greece, which has been hailed as "historic".
The deal gives Athens more time to repay €96.9bn (£85bn) worth of loans and extends a grace period during which Greece will pay little or no interest.
Greek Finance Minister Euclid Tsakalotos said it sent a signal that Greece was turning a new page.
EU Economic Affairs Commissioner Pierre Moscovici said the agreement meant "the Greek crisis ends here".
Under the deal, eurozone governments are also giving Greece a final cash loan of €15bn to help it keep paying its bills.
Greece's current bailout programme is due to end in August.
The country has had three bailout programmes since 2010, when Greece lost the confidence of the financial markets as a result of its huge budget deficit.
The ensuing financial crisis led to a debate over whether Greece would stay in the eurozone, as well as raising doubts over the future of the eurozone itself.
In return for the bailouts, Greece has had to enact a series of tough economic reforms. In the immediate aftermath of the crisis, the country's economy shrank and unemployment surged.
'Momentous' deal
Greece's economy has since stabilised, but it still faces the problem of making payments on its accumulated debt pile, which stands at about 180% of GDP.
But speaking after the latest debt relief deal was agreed, Mr Tsakalotos said he thought it was "the end of the Greek crisis".
"I think Greece is turning a page," he said. "I think that it has all the building blocks there to leave the programme with confidence that we can access the markets, that we can implement our growth strategy and turn the agenda away from one of fiscal adjustment, which has been completed, to one of growth.
"So I think it is a historic moment as people have said, a momentous moment."
EU commissioner Pierre Moscovici said: "The Greek crisis ends here tonight.
"We finally got to the end of this path which was so long and difficult, it is a historic moment."
The International Monetary Fund (IMF), which did not take part in the third bailout, welcomed the debt relief but expressed worries about the long-term situation.
"In the medium-term analysis, there is no doubt in our minds that Greece will be able to reaccess the markets," said IMF managing director Christine Lagarde.
"As far as the longer term is concerned, we have concerns," she added.--BBC
EU tariffs on US goods come into force
The European Union (EU) has introduced retaliatory tariffs on US goods as a top official launched a fresh attack on President Donald Trump's trade policy.
The duties on €2.8bn (£2.4bn) worth of US goods came into force on Friday.
Tariffs have been imposed on products such as bourbon whiskey, motorcycles and orange juice.
European Commission president Jean-Claude Juncker said duties imposed by the US on the EU go against "all logic and history".
Addressing the Irish parliament in Dublin, he added that "we will do what we have to do to rebalance and safeguard" the EU.
Full list of US goods hit by new EU import tariffs
US trade row: What has happened so far
What is a trade war and why should I worry?
Is the European Union a 'protectionist racket'?
Trump and the US economy in six charts
How did this start?
The Trump administration announced in March that it would introduce tariffs of 25% on steel and 10% on aluminium imported into the US.
Mr Trump has argued that global oversupply of steel and aluminium, driven by China, threatens American steel and aluminium producers, which are vital to the US.
After being deferred, the duties on steel and aluminium went ahead on 1 June and affect the EU, Canada, Mexico and other close US allies, including India.
For its part, India has said it will raise taxes on 29 products imported from the US - including some agricultural goods, steel and iron products - in retaliation for the wide-ranging US tariffs.
The new duties will come into effect from 4 August and will affect US almonds, walnuts and chick peas, among other products.
South Korea, Argentina, Australia and Brazil have agreed to put limits on the volume of metals they can ship to the US in lieu of tariffs.
However, Canada has announced it will impose retaliatory tariffs on C$16.6bn (£9.5bn) worth of US exports from 1 July.
And Mexico put tariffs on $3bn worth of American products ranging from steel to pork and bourbon two weeks ago.
Earlier this week, Mr Trump threatened to impose 10% duties on an additional $200bn (£150bn) worth of Chinese goods which he said would come into force if China "refuses to change its practices".
However, China accused the US of an act of "extreme pressure and blackmail" and said it would respond with "strong counter-measures".
Why has the US imposed tariffs?
President Trump believes that if you have a trade deficit - if you import more than you export - you are losing out.
He is especially irked by the hefty deficits in US trade with China and Mexico, but has indicated that he will not let any country "take advantage of us on trade any more".
Image Copyright @realDonaldTrump at REALDONALDTRUMP
Report
The US trade deficit has increased in recent years, running at around $50bn (£38bn).
However, this could be the result of a stronger economy, with US consumers buying more goods from overseas.
The new tariffs are meant to correct this imbalance.
There were confrontational scenes and words after the recent G7 summit in Quebec, at which the other major world economies challenged Mr Trump's tariffs and trade policies.
What could the impact of the EU counter-measures be?
The majority of US goods targeted by the EU, such as tobacco, Harley Davidson motorcycles, cranberries and peanut butter, will now carry a tariff of 25%.
However, the EU has introduced a 50% duty on goods such as footwear, some types of clothing and washing machines.
Many of the products the EU has in its sights are specifically chosen to have maximum political effect. Bourbon whiskey is produced in Kentucky, the state of Senate majority leader Mitch McConnell.
Orange juice is a key export for Florida, a swing state in the US elections.
Meanwhile, economists have warned the US tariffs could lead to higher metal costs, disrupt supply chains and even get passed on to US households.
What does this mean for consumers?
It's difficult to tell.
US trade officials have said they deliberately targeted a list of imports that will not raise prices for consumers. But retailers and producers do not agree.
Rick Helfenbein, president and chief executive officer of the American Apparel & Footwear Association, says the average family of four in the US will pay at least an extra $500 a year to buy consumer products affected by the tariffs.
In some cases, the tariffs may simply compel firms to seek supplies from other countries rather than pay the extra cost. If, for instance, Florida orange juice goes up in price in Europe because of the EU counter-tariffs, then firms can always import Brazilian orange juice instead.
For the US, that would be an unintended consequence of the tit-for-tat spat. But it's a good example of how trade wars can take unexpected turns.--BBC
Hammond: Treasury not the 'enemy of Brexit'
The Treasury is not "the enemy of Brexit", Chancellor of the Exchequer Philip Hammond has insisted.
In a speech in the City of London, Mr Hammond said the UK needed to protect patterns of trade with the EU that had been "built over decades".
The chancellor also used his Mansion House speech to confirm taxes will have to go up to boost spending on the NHS.
But he said the increase would be partly funded by lower contributions to Brussels post-Brexit.
In the past the chancellor has come under fire from supporters of Brexit.
Earlier this month Foreign Secretary Boris Johnson called the Treasury "the heart of Remain", in comments to a private dinner.
However, addressing a City audience on Thursday, Mr Hammond said the "immediate key" to the UK and London's economic success was "ensuring we get a good Brexit deal".
UK borrowing falls more than expected
UK's plan for EU citizens who want to stay
Tax rise to pay for NHS boost - PM
He said the goal was a partnership that "recognises that our European neighbours are our most important trading partners, and that Dover to Calais is the busiest trading corridor in Europe".
As the UK leaves the EU, he said the new relationship should "maintain low friction borders and open markets".
He went on: "That does not make the Treasury, on my watch, 'the enemy of Brexit'; rather, it makes it the champion of prosperity for the British people outside the EU, but working and trading closely with it."
Mr Hammond also said the £20bn five-year NHS funding package announced by the prime minister this week would be partly funded by lower contributions to Brussels.
However, he also said the government would stick to its fiscal rules and "continue to reduce debt".
As a result taxpayers will have to "contribute a bit more", he added.
Earlier this week, Prime Minister Theresa May announced a boost in NHS spending, which will see NHS England's budget increase by £20bn by 2023.
The plan also means more money will be given to the rest of the UK - about £4bn - although it will be up to the Welsh and Scottish governments to decide how that is spent.
Mr Hammond said the NHS was the government's "number one priority for the forthcoming spending review".
"So, as the Prime Minister said, taxpayers will have to contribute a bit more, in a fair and balanced way, to support the NHS that we all use."--BBC
US banks pass financial stress tests
The 35 largest banks operating in the US have enough money on hand to withstand a severe financial crisis despite rising levels of credit card debt.
That was the finding of the annual "stress tests" conducted by the US central bank, the Federal Reserve.
The US introduced the tests after the financial crisis to monitor financial strength in the event of a downturn.
The firms reviewed account for about 80% of all bank assets in the US.
The tests are intended to evaluate whether banks have enough of a financial cushion to handle a global recession.
'Hypothetical recession'
Under the central bank's stress scenario the unemployment rate would rise to 10% and stock prices and property prices would plunge.
The Federal Reserve calculated this would lead to roughly $578bn (£436bn) in total losses at the banks, but said their holdings of "high quality capital" would remain above the minimum required.
The ratio of high quality capital to risky assets would fall to as low as 7.9% in the hypothetical recession, compared with the 4.5% minimum requirement, it said.
Last year, the cushion was slightly higher at 9.2%.
The Federal Reserve said the performance in this year's tests, the eighth since 2009, reflected changes in the US tax law, as well as higher levels of credit card debt.
The central bank also said it had also measured the banks against a more severe hypothetical downturn than last year.
Federal Reserve raises interest rates
US to ease crisis-era Dodd-Frank banking rules
The banks subject to review included firms such as Goldman Sachs and Morgan Stanley, as well as US divisions of foreign companies, such as Barclays and Deutsche Bank.
Goldman Sachs, which was among the worst performers, said its internal evaluation model differs from the Fed's.
It said it is examining the differences and that its financial capacity "may be higher than this year's test would otherwise indicate."
New rules from Congress recently reduced the number of banks which are subject to the tests.
After changes passed this spring, banks with less than $100bn in assets are exempt from the reviews. Previously, banks with $50bn or more were generally subject to the tests.--BBC
US court backs states over web sales tax
The top court in the US has ruled that states can force online companies to collect sales tax from their customers.
Previously, companies without a physical presence in a state were exempt from sales tax collection requirements.
The Supreme Court said the physical presence rule was "unsound and incorrect".
The 5-4 decision is expected to help states collect billions more in revenue each year.
The ruling stems from a dispute between three online retailers and the state of South Dakota, which passed a law in 2016 that required firms doing a certain amount of business in the state to collect sales tax from customers.
The Supreme Court rejected a challenge to that law, overturning a 1992 Supreme Court decision that established the physical presence requirement.
Justice Anthony Kennedy wrote that the rule "each year... becomes further removed from economic reality and results in significant revenue losses to the states".
He added that the requirement for physical presence amounted to a "judicially created tax shelter" that put online firms at an advantage over their bricks-and-mortar competitors.
The majority of US states collect some sales tax on retail purchases, typically charging customers between 4% and 8% for each transaction.
Shops and retail chains have argued for years that existing sales tax rules encourage customers to do their shopping online, where they can avoid paying that tax.
The National Retail Federation, a trade association, cheered Thursday's ruling, saying it would help to create a "fair and level playing field where all retailers compete under the same sales tax rules whether they sell merchandise online, in-store or both".
But NetChoice, a trade association for e-commerce firms, warned small businesses would have trouble complying with the different tax requirements in each state.
The group described the decision as a "body blow" to customers and small online businesses.
"Consumers will quickly feel the negative effects as those businesses dry up or are forced into the arms of Internet giants," said Chris Cox, NetChoice outside counsel.
Shares in the online marketplace Etsy fell more than 2% after the decision. Shares in Wayfair, an online furniture company that is one of the firms involved in the court case, fell by more than 1%.
Amazon shares slumped less than 1%. The firm already collects sales tax on the goods it sells directly, but it does not always do so for products sold by independent merchants using its platform.--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
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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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