Major International Business Headlines Brief::: 25 June 2018

[Bulls n Bears]

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 25 June 2018

 


 

 


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

 


 

 


 

 

*  Ascendis Health to sell non-core assets in South Africa

*  South Africa's rand steadies against dollar, bonds firmer

*  Restructuring Eskom top of South Africa agenda-finmin Nene

*  South Africa's Naspers annual profit up 72 pct, helped by Tencent stake

*  Kenya authorities arrest standards bureau head over fertiliser imports

*  Ivory Coast aims to grind 1 million tonnes of cocoa beans by 2022

*  Tunisia raises fuel prices, third hike this year

*  Zambia shortlists 10 firms for 100 MW solar projects

*  Business Brexit 'threats' are 'inappropriate' says Hunt

*  How the Audi boss was finally emitted

*  German car shares dip on Trump tariff tweet

*  Saudi Arabia job growth likely as woman driver ban ends

*  House of Fraser store closure plan backed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Ascendis Health to sell non-core assets in South Africa

JOHANNESBURG (Reuters) - South African healthcare provider Ascendis Health
said on Monday it plans to dispose of smaller local non-core businesses as
part of a strategic review aimed at improving cash generation and enhancing
profitability.

 

Ascendis, which generates 60 percent of its profit outside South Africa,
said it will sell its sports nutrition business, its direct selling and
network marketing business as well a production plant in Johannesburg.

 

These three assets were deemed non-core or underperforming, Chief Executive
Thomas Thomsen said in a statement.

                              

“In this strategic review process we have had to make difficult decisions
but realise they are imperative to strengthen our market position and grow
the company profitably,” Thomsen said.

 

The sale processes are underway and the proceeds will be reinvested to
improve organic revenue growth and financial metrics, Thomsen added.

 

Ascendis Sports Nutrition, with brands such as SSN, has a fragmented product
portfolio in South Africa, the company said. This has lead the group to
focus solely on its biggest sports nutrition brand, Scitec.

 

Hungary-based Scitec, which was acquired by Ascendis in 2016, is one of the
leading sports nutrition brands in Europe and exports products to more than
90 countries worldwide.

 

Ascendis, which also has operations in Spain, Cyprus, Romania and Australia,
spent 2016 focusing on offshore growth and expansion in order to diversify
exposure and risk to the South African economy.

 

In South Africa, as part of the strategic review, it will consolidate its
pharmaceutical manufacturing facilities in Gauteng province.

 

“We are acutely aware of the impact of these decisions on our people and the
affected employees will have the option to be transferred to the new owners
to ensure job retention,” Thomsen said.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

 

South Africa's rand steadies against dollar, bonds firmer

JOHANNESBURG (Reuters) - South Africa’s rand steadied in early trade on
Monday, holding on to gains from the previous session as technical
consolidation and a break in negative news help the unit to stabilise.

 

 

Restructuring Eskom top of South Africa agenda-finmin Nene

LONDON (Reuters) - Restructuring state-run power firm Eskom is “on top of
the agenda” for South Africa, the country’s finance minister Nhlanhla Nene
said on Friday, though he said recent outages likely had very little impact
on the economy.

 

Africa’s most industrialised economy suffered power outages earlier in June
because of what Eskom said was an “illegal protest action” by South Africa’s
National Union of Mineworkers (NUM) and two other unions.

 

The last time there were controlled power outages in 2015, economic output
suffered.

 

“It should be very minimal this time round, because... it also was related
to the impasse in the industrial space,” Nene told reporters on the
sidelines of an Africa conference hosted by Standard Bank.

 

“Beyond the discussions and the negotiations on the salaries, what is
important is actually beginning to restructure Eskom,” he added. “It is on
top of our agenda to get Eskom on a sustainable platform.”

 

Discussions on the issue of wages with unions were continuing, Nene said,
but asked if the government had the funds satisfy unions’ wage demands, he
replied that the money “does not exist”.

 

“What exists is the goodwill and political will also to have an honest,
open, frank discussion how to best take this forward in the interest of
South Africa.”

 

 

Nene also said South Africa was continuously trying to remind major central
banks around the world of the effects their monetary policy had on other
economies.

 

Emerging markets have been roiled by a sell-off in recent weeks, which
accelerated after a U.S. Federal Reserve meeting that raised the prospect of
the central bank increasing interest rates faster than previously expected.

 

Due to its high external financing needs, South Africa is more vulnerable
than other emerging economies to a global rise in borrowing costs.

 

“We are just trying to appeal to the developed economies, to the U.S. in
particular, to be much more cautious,” he said.

 

“We should all be alive to the spillovers... be it monetary or fiscal, to
other parties,” he said. “But the recent (rise in the) level of
protectionism has led to a complete undermining of multilateralism.”

 

Nene added that South Africa needed to build up its fiscal buffers to be
able to withstand any external shocks and that he expected the economy to
expand at 1.5 percent in 2018 despite the surprise contraction in the first
quarter.

 

 

South Africa's Naspers annual profit up 72 pct, helped by Tencent stake

JOHANNESBURG (Reuters) - South Africa media and e-commerce giant Naspers
reported a hefty 72 percent rise in annual profit on Friday, thanks to a
strong showing from its Chinese money spinner Tencent.

 

Naspers, which owns about 30 percent of the Chinese technology firm Tencent,
said core headline earnings totaled $2.5 billion, or 581 cents per share, in
the year ended March compared with $1.5 billion, or 337 cents per share, a
year earlier.

 

Core headline EPS is Naspers’ main profit measure that strips out
non-operational and one-off items.

 

 

Kenya authorities arrest standards bureau head over fertiliser imports

NAIROBI (Reuters) - The authorities have arrested the managing director of
the Kenya Bureau of Standards (KEBS) and other officials on charges they
allowed the import of fertiliser that failed KEBS tests, the public
prosecutor said.

 

Investigations by the Director of Criminal Investigations (DCI) found that
the fertiliser imported from Morocco failed to meet KEBS’s standards when
tested but it was released to the market instead of being destroyed or
returned, the Director of Public Prosecutions (DPP), Noordin M. Haji, said
in a statement.

 

“We have established that there is criminal culpability on the part of KEBS
officials entrusted with the mandate of monitoring and control of
standards,” Haji said, adding that there was “adequate evidence to mount a
prosecution.”

 

“I have given consent to the DCI to immediately cause the arrest of all the
suspects,” Haji said.

 

Charles Ongwae, head of the body responsible for checking standards of goods
entering the East African nation, was among KEBS officials named by the DPP
and detained on Friday evening.

 

 

Ongwae and other officials could not immediately be reached for comment.

 

Kenya is being roiled by a spate of scandals involving bogus tenders and
suppliers that the authorities say led to the theft of hundreds of millions
of shillings from government bodies by state officials.

 

President Uhuru Kenyatta pledged to stamp out graft when he was first
elected in 2013 but critics say he has been slow to pursue top officials and
ministers.

 

Kenyatta, who was elected for a second term last year, has spoken out
recently against graft and urged the judiciary “to ensure fair trials and
justice”.

 

 

Ivory Coast aims to grind 1 million tonnes of cocoa beans by 2022

YAMOUSSOUKRO, Ivory Coast (Reuters) - Top cocoa producer Ivory Coast could
grind 50 percent of its current output locally by 2022, boosted by fiscal
measures and incentives given to companies in the sector, the deputy head of
the Coffee Cocoa Council (CCC) marketing board said on Friday.

 

“Yes, it is possible to hit 1 million tonnes by 2020-2022 because of the
fiscal advantages the government has given to companies to help them invest
massively, and that is what is happening,” CCC deputy head Yao N’goran told
Reuters.

 

Ivory Coast has an installed grinding capacity of 712,000 tonnes. Increasing
that capacity and new grinding units will enable it to reach the target
within the next four years, N’goran said.

 

The government agreed a convention with multinational companies in the
sector including Cargill, Olam and Barry Callebaut in 2017, in which the
companies agreed to increase their bean grinding by 7.5 percent each, so as
to benefit from the government incentives.

 

Mariam Kone, executive secretary of the GEPEX, a lobby representing
multinational cocoa exporters and grinders, said nearly all companies had
signed the convention.

 

Kone added that for the target to be reached, it was necessary for the
government to give additional incentives.

 

“The Cocoa Coffee Council had promised to pay back our excess electricity
costs after power prices were increased inconsiderately a few years ago, so
far, we are still waiting for it,” Kone said.

 

    According Ivorian cocoa grinders, energy costs, the cost of importing
machinery, and getting qualified plant maintenance specialists, are factors
that make local grinding less attractive compared with options outside Ivory
Coast.

 

    “I think it can be done by 2022, but we will need more tax and other
incentives,” Loic Biardeau, Barry Callebaut managing director in Ivory
Coast, told Reuters.

 

“The cost of energy remains a negative factor compared with western
countries, so there are efforts to be made on that side,” he said.

 

 

Tunisia raises fuel prices, third hike this year

TUNIS (Reuters) - Tunisia raised fuel prices on Friday by 4 percent, the
third hike this year as the government seeks to a cut budget deficit, a key
requirement of international lenders.

 

The price of a litre of petrol will rise to 1.925 Tunisian dinars ($0.741)
from 1.85 dinars, starting Saturday, the energy ministry said in a
statement. The two previous increases this year were in March and January.

 

The International Monetary Fund urged Tunisia this year to raise energy
prices and the retirement age to help curb the budget deficit and said any
further public wage hikes would be difficult to sustain given weak growth.

 

Fuel subsidies this year will rise from an expected 1.5 billion dinars ($578
million) to 4 billion dinars with the rise of world oil prices, economic
reforms minister Taoufik Rajhi said earlier this month. Tunisia has forecast
that the budget deficit will fall to 4.9 percent of gross domestic product
in 2018, from about 6 percent in 2017. 

 

Tunisia has dropped into a deep economic slump following the overthrow in
2011 of autocratic leader Zine El-Abidine Ben Ali.

 

Although its successful democratic transition since then contrasts with
other “Arab Spring” countries, nine governments have failed to cut the
budget deficit and revive an economy hit by a lack of investment.

 

($1 = 2.5980 Tunisian dinars)

 

 

 

Zambia shortlists 10 firms for 100 MW solar projects

LUSAKA (Reuters) - Zambia has shortlisted 10 regional and international
companies to build a total of 100 megawatts (MW) of solar electricity
projects by 2020, the director of the project said on Friday.

 

Zambia is heavily dependent on hydropower and following a drought in 2016,
an electricity shortage hit Africa’s No.2 copper producer, forcing it to
ration power supply to the mines.

 

The country has since embarked on a policy to diversify to renewable forms
of energy to ensure security of electricity supply.

 

“The shortlisting was done yesterday. We will launch the request for
proposal sometime in July,” Global Energy Transfer Feed-in Tariff Zambia
Programme Director William Pearson told Reuters on the sidelines of a mining
and energy conference.

 

 

 

Business Brexit 'threats' are 'inappropriate' says Hunt

Health Secretary Jeremy Hunt has said that "threats" by business over Brexit
are "completely inappropriate".

 

He was responding to warnings by Airbus and BMW that investments in the UK
could be jeopardised by Brexit uncertainty.

 

Speaking on The Andrew Marr Show, Mr Hunt said Brexit discussions were at
"critical moment" and needed unity.

 

He also refused to rule out scrapping cuts to corporation tax in order to
fund extra spending on the NHS.

 

Last week, Airbus warned it could leave the UK if Britain were to exit the
single market and customs union without a transition deal.

 

BMW followed the warning by saying that clarity over Brexit is needed by the
end of the summer.

 

In response Mr Hunt said: "It's completely inappropriate for businesses to
be making these kinds of threats.

 

"We are in an absolutely critical moment in the Brexit discussions and what
that means is that we need to get behind Theresa May to deliver the best
possible Brexit.

 

"The more that we undermine Theresa May the more likely we are to end up
with a fudge, which would be an absolute disaster for everyone."

 

Brexit: All you need to know

Stay in customs union, says Siemens boss

CBI chief: Industry sectors face extinction

But Edwin Morgan, director of policy at the Institute of Directors, said:
"Business leaders have every right to speak up about their needs and
concerns as we approach incredibly significant negotiations for the future
of this country.

 

"Firms think very carefully before sticking their heads above the parapet,
so they should be listened to by politicians, not dismissed. Companies have
to honestly assess the risks they face, and spelling them out should never
be brushed off as a 'threat'."

 

Last week BMW UK boss Ian Robertson said he needed to know within months
what the government's preferred position was on customs and trade post
Brexit.

 

"If we don't get clarity in the next couple of months we have to start
making those contingency plans... which means making the UK less competitive
than it is in a very competitive world right now," he said.

 

"That is a decisive issue that ultimately could damage this industry."

 

BMW makes the Mini and Rolls Royce and employs about 8,000 people in the UK.

 

It has built up an alternative manufacturing base in the Netherlands amid
concerns about Britain's suitability as an export hub after Brexit.

 

'Severe disruption'

The customs union brings together the EU's 28 members in a duty-free area,
in which they pay the same rate of duty on non-EU goods.

 

Prime Minister Theresa May has ruled out staying in the customs union after
the UK leaves the EU on 29 March 2019.

 

Airbus, in its Brexit "risk assessment" published on Thursday, said if the
UK left the EU next year without a deal - leaving both the single market and
customs union immediately without any agreed transition - it would "lead to
severe disruption and interruption of UK production".

 

The European plane-maker said the warning was not part of "Project Fear",
but was a "dawning reality".

 

The term "Project Fear" has been used by some pro-Brexit campaigners to
denote alleged scaremongering by those in favour of remaining in the EU.

 

"Airbus have been one of the first companies to stick their head above the
parapet and explain how distressing and how worrying the government's
current direction of travel is," Labour's shadow business secretary Rebecca
Long-Bailey told BBC Radio 5's Pienaar's Politics.

 

She said she had been told in private meetings with UK business leaders that
if the government went into a "no deal" Brexit scenario "it would finish
them and they would have to close their sites".--BBC

 

 

 

How the Audi boss was finally emitted

Rupert Stadler is the long-serving Chief Executive of VW's subsidiary Audi
and a senior member of the group's management board.

 

He was arrested on Monday as part of an investigation into suspected fraud
and false advertising, involving the sale of vehicles equipped with
emissions cheating software.

 

He has spent the past few days incarcerated behind the high concrete walls
of Augsburg-Gablingen prison - a far cry from Audi's majestic glass-fronted
headquarters in Ingolstadt.

 

Executives under fire

The Audi CEO was already known to be under scrutiny. A week before his
arrest, his house was searched, by Munich prosecutors.

 

He was named as one of 20 people being investigated as part of their
enquiry. He was detained, according to prosecutors, because of concerns
about the possible obstruction of justice.

 

Mr Stadler has now stepped down from his posts, temporarily at least.

 

But what many experts are puzzled by is why - whether or not he has actually
done anything wrong - he was still in those posts at all.

 

Rupert Stadler is VW Group royalty.

 

He has been in charge of Audi since 2007, and has sat on the main group
board since 2010. Last year his contract was extended for five years - up to
the end of 2022.

 

That surprised many observers. Audi was heavily implicated in the diesel
emissions scandal, which first came to light in September 2015.

 

According to a statement agreed by VW with US prosecutors as part of a
settlement last year, it was Audi engineers who first came up with the
so-called "defeat device".

 

This was software which put cars into a special test mode, enabling them to
pass stringent US emissions tests, despite producing high levels of
pollution when used on the road.

 

It was later found to have been fitted to millions of cars around the world.

 

Audi also designed and built 3 litre engines used by brands throughout the
VW Group, which were later shown to be using the illegal software.

 

When the wrongdoing came to light, the VW Group chief executive, Martin
Winterkorn, lost his job. Since then many more executives and senior
engineers have left.

 

Audi admits more diesel emission problems

How VW tried to cover up the emissions scandal

Ex-VW boss charged over diesel scandal

The company has thoroughly overhauled its management - and even Mr
Winterkorn's successor, Matthias Mueller, was recently moved on.

 

Yet until this week, Rupert Stadler remained firmly in his post.

 

Last year, the company offered to install new engine software on 850,000
cars to reduce their emissions. In May it recalled a further 60,000 after
discovering "irregularities" in their emissions controls.

 

Even the news that Mr Stadler's house had been raided by prosecutors
investigating the emissions scandal did not appear to set alarm bells
ringing.

 

"It certainly raises questions about governance at Volkswagen and Audi",
says Arndt Ellinghorst, automotive analyst at Evercore ISI.

 

"Why did the police act and not the board of VW? I think he should have
stepped down earlier.

 

"Whether you're guilty or not, if you're in charge you have to take
responsibility".

 

A question of governance

The reason he remained in his post may be down to the way Volkswagen is
owned and run.

 

A majority of the voting rights are held by Porsche SE.

 

This is essentially an investment vehicle controlled by the Porsche and
Piech families. They are descendants of Ferdinand Porsche, the man who
invented the VW Beetle and founded the sportscar maker that bears his name.

 

There are two other highly influential shareholders - the State of Lower
Saxony and Qatar Holding, a division of the Qatar Investment Authority.

 

According to Professor Ferdinand Dudenhoffer of the Center Automotive
Research at the University of Duisburg-Essen, Mr Stadler had powerful
backing.

 

"It's very surprising", he says.

 

"Wolfgang Porsche, who represents the families, has supported Stadler since
the beginning of the scandal. The Premier of Lower Saxony has also supported
him".

 

"When his house was searched, they didn't react. Then after his arrest, they
took a whole day to react".

 

Arndt Ellinghorst agrees.

 

"It is extraordinary. It is a big setback in terms of the governance within
Volkswagen", he says.

 

Breath of fresh air

Since the scandal erupted, VW has had to set aside some $30bn to cover fines
and settlements. Earlier this month it agreed to pay $1.2bn to settle
criminal charges in Germany.

 

In April, the company appointed a new CEO, Herbert Diess. A former BMW
executive with a reputation as a ruthless decision maker, he joined VW a
mere three years ago - and was welcomed by many outside experts as a breath
of fresh air.

 

His appointment coincided with a major restructuring of VW's management,
designed to streamline decision making, and help speed up reform within the
group.

 

But the arrest of one of the Group's top executives while still in office
suggests that the road to reform remains dauntingly long.--BBC

 

 

 

German car shares dip on Trump tariff tweet

Shares in European carmakers took a hit on Friday, after US President Donald
Trump redoubled his threats of tariffs against their cars.

 

Mr Trump tweeted that the US would place a 20% import tax on European cars,
if the EU's "tariffs and barriers are not broken down soon and removed".

 

Shares in BMW, Daimler, Porsche and Volkswagen each dropped more than 1%,
before regaining ground.

 

Mr Trump's comment came amid a US national security probe of car imports.

 

Mr Trump launched the investigation last month, ordering the Commerce
Department to determine if car imports are a risk to national security.

 

The US followed a similar process for the steel and aluminium industry,
which led it to impose tariffs on the foreign metals this spring.

 

The EU, China, Mexico, Canada and India are among the places that have plans
to retaliate or have already done so.

 

 

The decision to expand the Trump administration's trade disputes to foreign
car manufacturers has come under fire from some in the US Congress, as well
as many business lobby groups.

 

At a hearing this week, Senator Orrin Hatch, a Republican from Utah, said he
was "stunned" that the Trump administration was investigating the national
security risk of vehicle imports, which is estimated to affect about $200bn
worth of imports.

 

He said the probe alienates allies and tariffs would lead to job losses and
increased costs in the US.

 

 

US Commerce Secretary Wilbur Ross assured the congressional panel that there
has been "no decision" made about whether to recommend tariffs.

 

"We're in the early stages of the process," he said.

 

He said Thursday that the Commerce Department hopes to complete the
investigation by the end of July or August.

 

Job losses

The EU sent almost $50bn in vehicles and auto parts to the US last year,
with roughly half coming from Germany.

 

Cars from the UK accounted for about $9bn, according to the Peterson
Institute for International Economics, a Washington think tank.

 

The organisation estimates that a 25% tariff on foreign vehicles and parts
for them, assuming the US does not grant exemptions to some countries, would
lead to the loss of about 195,000 jobs in the US.

 

Shares in major European car companies were already on edge due to trade
tensions.

 

Daimler earlier this week warned that it expects lower sales of
Mercedes-Benz cars due to a tax on the import of US vehicles into
China.--BBC

 

 

 

Saudi Arabia job growth likely as woman driver ban ends

Sunday marks a historic day for the women of Saudi Arabia.

 

After more than 60 years spent stuck in the passenger seat, the Gulf
kingdom's 15.1 million women can finally take control of the steering wheel
when the ban on female drivers is lifted.

 

Accountancy firm PwC predicts that the number of women on Saudi Arabia's
roads will swell to three million by 2020.

 

Thousands of women have signed up for driving lessons as new female-only
programmes have sprung up.

 

However, those hoping for a quick shot in the arm for the Saudi economy -
and its struggling car industry - will have to wait.

 

New car sales in Saudi Arabia fell 22.3% last year to 536,767 vehicles,
according to Matt Gasnier, founder of bestsellingcarsblog.com, which gathers
car sales data from manufacturers around the world.

 

Saudi Arabia fell into recession last year when GDP fell 0.5% due in large
part to weaker oil output.

 

And Mr Gasnier says that the "very difficult" conditions that blighted Saudi
Arabia in 2017 have continued into this year.

 

Saudi Arabia issues first driving licences to women

Why weren't women in Saudi Arabia allowed to drive?

Welsh woman teaches Saudi women to be driving instructors

It may also take some time for enough driving schools that cater solely to
women to be set up in Saudi Arabia, though when they are established they
will "create a large number of job opportunities for female driving
instructors", says PwC.

 

"It's not all going to happen on day one," says Crystal Worthem, marketing
director in the Middle East and Africa for US carmaker Ford, which has set
up a driving skills programme for women with Effat University in Jeddah.

 

Cautious

She thinks that some Saudi women will take a wait-and-see approach to
learning to drive, rather than jumping straight in.

 

It is like downloading new software for a mobile phone, says Ms Worthem:
"You don't want to be the first to download it. You want to wait for three
months so all the kinks and glitches have been ironed out."

 

It is not surprising that women from the ultra-conservative Gulf state are
cautious.

 

While there was no formal ban on female drivers in Saudi Arabia women, have
been unable to obtain a driving licence. The policy has been in place since
1957 - though that will change on 24 June.

 

Last year, Saudi King Salman bin Abdulaziz Al Saud issued a decree stating
that the monarchy would start issuing driving licences for women.

 

His son, Crown Prince Mohammed bin Salman, has set out a plan, called Vision
2030, to diversify the Saudi Arabian economy away from its dependence on
oil.

 

This includes lowering the kingdom's unemployment rate from 11.6% to 7% and
increase women's participation in the workforce from 22% to 30%.

 

Have car, will travel

A report by the Gulf Research Centre said that lifting the driving ban on
women "may help them overcome some of the difficulties they face in
accessing job opportunities".

 

The changes have already meant more visibility for Saudi women who work in
the car industry.

 

 

Abdul Latif Jameel Motors, which is the authorised distributor for Toyota
cars in Saudi Arabia, said it had deployed almost 100 female front-line
staff in their showrooms to advise women who are looking for a new motor.

 

Ford has also trained a number of female staff, who previously worked in its
back offices, to be able to help women.

 

But the kingdom has some way to go to hit its Vision 2030 target.

 

The female labour force participation rate was 20.9% in the final quarter of
2017, according to Saudi Arabia's General Authority for Statistics, compared
with a male labour force participation rate of 79%.

 

In a report, the Gulf Research Centre said it was not immediately clear how
much of the low labour participation rate for women was because of the
driving ban. However, it said: "Assuming that this is a major handicap, the
new law would enable most of the 0.43 million unemployed women to actually
contribute to the labour force and the economy."

 

It adds that the new law means many of the 1.5 million Saudi women who are
at school or are in training can join the labour force in the years to come.

 

Winners and losers

Probably the biggest knock-on effects from lifting the ban will be on
expatriate drivers - mainly from India and Bangladesh - employed by Saudi
households for years to transport women and carry out daily errands.

 

Out of 1.67 million foreign male domestic workers, 1.38 million of those are
drivers in Saudi Arabia, according to the most recent official figures.

 

Abdullah Ahmed Al-Moghlooth, a member of the Saudi Economic Association,
estimates that if the number of expatriate drivers was cut by 50% once the
ban is lifted, the country could save as much as 20bn Saudi riyal (£4bn) a
year on areas such as salaries and work permit fees.

 

Hala Kudwah, Middle East consulting partner and financial services leader at
PwC in Saudi Arabia, says it will "alter spending patterns in the kingdom
through increased family income and savings in transportation".

 

While Ms Worthem conceded that the biggest impact of the change would be on
drivers, she doesn't expect the workforce to be completely wiped out. "We
have seen a decent amount of people saying they would keep a driver on to
take children to school," she said.

 

Though Mr Gasnier doesn't expect women to rush out and buy a car straight
away. "There will be women who fire the chauffeur and drive in the car they
already own."

 

Any uplift from new women drivers will be "quite gradual", he says.--BBC

 

 

 

House of Fraser store closure plan backed

Creditors have backed department store chain House of Fraser's plans to
close more than half its stores.

 

High Street landlords were unhappy with the plan as they will have to
shoulder the burden of financial losses, but they were outvoted.

 

The retailer will now go ahead and shut 31 of its 59 shops nationwide, and
also impose huge rent cuts on 10 others that it intends to keep.

 

Up to 6,000 jobs are set to go as a result of the store closures.

 

The vote was seen as a make-or-break moment for the 169-year-old business.
If the rescue plan had failed, administration was likely.

 

Why is House of Fraser failing?

Why we no longer love department stores

In all, 2,000 House of Fraser jobs are set to go, along with 4,000 brand and
concession roles.

 

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

 

In May, House of Fraser's Chinese owners, Nanjing Cenbest, reached a
conditional agreement to sell a 51% stake to the Chinese owner of Hamley's,
C.banner. The sale was conditional on the restructuring plan being approved.

 

"Following the restructuring, House of Fraser will have a more sustainable
cost base and a platform for future growth to deliver an improved customer
proposition," the company said in a statement.

 

The House of Fraser stores identified for closure:

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

 

'Difficult decision'

House of Fraser is using company voluntary arrangements (CVAs), a form of
insolvency proceedings, to overhaul its business.

 

CVAs are being increasingly used by struggling retailers as a way to close
stores, but House of Fraser's has been the most contentious restructuring
deal to date.

 

Landlords argue that CVAs are being abused as a quick way to cut rents and
want the government to launch an urgent review into them.

 

In order to be enacted, CVAs have to be approved by 75% of unsecured
creditors, but landlords' voting power is reduced because of the way in
which insolvency rules are applied.

 

House of Fraser chief executive Alex Williamson said: "The CVA proposals
have been approved by our creditors and we are grateful for their ongoing
support and belief in the future of House of Fraser.

 

"This was clearly a difficult decision to take but is, ultimately, the only
one to secure our future.

 

"Our focus is on supporting all of our affected colleagues and we are
exploring every opportunity available to them, working alongside the Retail
Trust and the wider retail community."

 

Harsh climate

Mark Fry of Begbies Traynor and Charlotte Coates of JLL, who had been
advising a group of the affected landlords, said: "It is disappointing that
the CVA has been agreed without proper engagement with the landlords, many
of whom manage the pensions and investments of the man in the street,
despite them having so much at stake through the process.

 

"However, with landlords' voting power reduced by an arbitrary 75% of the
value of their already discounted claims, the odds were always stacked
against them.

 

"The landlords now have a 28-day window to consider whether to make a legal
challenge against the process and will be looking at their options closely."

 

High Street retailers have been facing a harsh climate this year amid
falling consumer confidence, rising overheads, the weaker pound and the
growth of online shopping.

 

Electronics chain Maplin and toy chain Toys R Us both collapsed into
administration earlier this year.

 

Other High Street chains such as Mothercare and Carpetright have been forced
to close stores in order to survive.--BBC

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


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.

 


 

 


(c) 2018 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

Invest Wisely!

Bulls n Bears 

 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180625/161c497d/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180625/161c497d/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 8312 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180625/161c497d/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180625/161c497d/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29388 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180625/161c497d/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29420 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180625/161c497d/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180625/161c497d/attachment-0011.jpg>