Major International Business Headlines Brief::: 27 June 2018

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Major International Business Headlines Brief::: 27 June 2018

 


 

 


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*  Volkswagen opens Rwanda's first car plant

*  South Africa's Telkom CFO steps down to take new role

*  South Africa's rand slightly weaker as investors eye news flow

*  Vodafone to list Ghana unit on local stock market after debt
restructuring

*  Sudan, South Sudan agree deal to increase oil output -minister

*  Zambian parliament recommends private investment in state firms

*  Danone's Morocco dairy firm loses 50 percent of milk market -CEO

*  Gabon oil workers threaten 15-day strike at Total facilities

*  Land, mining uncertainty threatens South Africa growth - Moody's

*  Old Mutual returns to African roots with Johannesburg listing

*  BMW says Brexit customs costs would push up prices

*  Donald Trump: Harley-Davidsons should "never" be made abroad

*  Brexit: Businesses and unions call for urgency

*  Uber granted short-term licence to operate in London

*  Brexit: Car investment slumps as 'uncertainty bites'

*  European readers still blocked from some US news sites

*  Brexit prompts Heathrow operator Ferrovial to move international HQ out
of UK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Volkswagen opens Rwanda's first car plant

KIGALI (Reuters) - Volkswagen will launch a car assembly facility in Rwanda
on Wednesday, the first such factory in the East African nation as Europe’s
biggest carmaker expands its presence in the region.

 

Car ownership remains low in the nation of 12 million people with just over
200,000 private cars registered since 1997, according to the country’s tax
collection body.

 

But Volkswagen, which already builds vehicles in nearby Kenya, hopes not
just to sell vehicles but for them to also be used in an Uber-like
car-sharing system where people will use their smartphones to book rides.

 

The German automaker said in January that it initially plans to build up to
5,000 cars per year, beginning with the Polo and Passat models.

 

Monique Nsanzabaganwa, the vice governor of Rwanda’s central bank, welcomed
the move as an example of much needed investment in the nation, which
receives over $1 billion in foreign aid and development assistance but has
made business-friendly reforms in recent years.

 

 

“It is a vote of confidence for Rwanda,” she told Reuters. “It is good for
job creation in Rwanda and making Rwanda a trusted location for services and
in this case, manufacturing.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

 

South Africa's Telkom CFO steps down to take new role

JOHANNESBURG (Reuters) - Telkom SA said on Wednesday its Chief Financial
Officer will step down at the end of the month to take on the responsibility
of Chief Investment Officer to tackle the South African landline provider’s
investment strategy.

 

Deon Fredericks, 57, will be replaced by insider Tsholofelo Molefe on July
1, the company said in a statement.

 

Molefe joined Telkom in 2016 as Deputy CFO to Fredericks. In 2017 she was
appointed to the group executive committee as Chief Risk and Compliance
Officer.

 

 

 

South Africa's rand slightly weaker as investors eye news flow

JOHANNESBURG (Reuters) - South Africa’s rand edged lower on Wedensday in a
subdued morning session.

 

* At 0630 GMT the rand was 0.06 percent weaker at 13.5525 per dollar.

 

* Traders said the currency’s next move would likely be higher towards 13.60
as sentiment remains bearish due to the simmering trade row between China
and the United States.

 

* Safe-haven assets remain in favour, traders said, with short rand plays
targeting 13.20 and stops above 13.80.

 

* “We need a break of either 13.6500 or 13.4500 to shake things up again but
at this stage hard to see what is going to push it, analysts at Nedbank said
in a note.

 

* Bonds were also barely changed, with the yield on the benchmark paper due
in 2026 up 0.5 basis points to 8.885 percent.

 

* Stocks were due to open lower when trade commences at 0700 GMT, with the
JSE Top-40 futures index down almost 0.4 percent.

 

 

 

Vodafone to list Ghana unit on local stock market after debt restructuring

ACCRA (Reuters) - Vodafone’s Ghana business plans to list on the local stock
market after restructuring its loans, the head of the local unit told
Reuters on Tuesday.

 

Yolanda Zoleka Cuba said Vodafone was in talks with the West African
country, which owns a 30 percent stake, to restructure its debt.

 

The world’s largest mobile group by revenue paid $900 million for a 70
percent stake in state-run Ghana telecom in 2008 while the government
retained the remaining 30 percent with an enterprise value of around $1.3
billion at the time.

 

The company had said plans to return the business to profit after an
additional $1.2 billion investment were hampered by Ghana’s failure to
fulfil its financial obligations as minority holder.

 

“There has been some movement now and the government has shown commitment
with resolving the debts. They have given us a letter of undertaking around
the restructuring of the company’s debt and that’s where we are now,” Cuba
said.

 

Cuba said although Vodafone Ghana has yet to make profit since the
acquisition, it has grown and invested “significantly” to modernise its
services, including the launch of a nationwide fibre optic network.

 

Vodafone is the third largest mobile network in Ghana with around nine
million subscribers after South Africa’s MTN and AirtelTigo, a merger of
Millicom International Cellular’s Tigo and India’s Bharti-Airtel. Others are
Globacom of Nigeria and Sudan’s Sudatel Expresso.

 

 

Sudan, South Sudan agree deal to increase oil output -minister

KHARTOUM (Reuters) - Sudan and South Sudan on Tuesday agreed on a deal to
nearly double oil output from South Sudanese fields by the end of the year,
the Sudanese oil minister said without giving any details.

 

The agreement aims to increase output at the Faluj oil field to 180,000
barrels per day (bdp) from the current 127,000, the minister, Azhari
Abdalla, said.

 

South Sudan said in January 2017 it aimed to double its output, but did not
achieve that. The African country has been hit by years of civil war, which
erupted in 2013 less than two years after it gained independence from Sudan.

 

South Sudan’s warring factions met in Khartoum this week in an attempt to
reach a peace deal. [nL8N1TS41K]

 

 

Zambian parliament recommends private investment in state firms

LUSAKA (Reuters) - Zambia must consider seeking equity partners to
recapitalise its state-owned firms, a parliamentary committee recommended on
Tuesday.

 

Zambia transferred the shares of 29 of its 33 state-owned companies in 2015
from the ministry of finance to the government’s investment arm, the
Industrial Development Corporation (IDC).

 

The state-owned firms include power utility Zesco Ltd, the nation’s only
fixed-line telecoms firm, Zamtel, Zambia Railways and newspaper companies,
Times of Zambia and Zambia Daily Mail.

 

“There is need to change the face of the companies through
recapitalisation,” Peter Daka, the chairman of the parliamentary committee
on state-owned firms, said in presenting its report.

 

Finance Minister Margaret Mwanakatwe told parliament the government had
already approved plans to invite private sector investors into its
companies. “All the state-owned companies will ultimately list on the
(Lusaka) stock exchange to raise capital,” she said.

 

The number of state-owned companies under the IDC declaring dividends had
increased to seven this year from only one in 2015, she said.

 

Half of the IDC portfolio should become profit-making and start declaring
dividends by the year 2020, she added.

 

 

 

Danone's Morocco dairy firm loses 50 percent of milk market -CEO

CASABLANCA, Morocco (Reuters) - France’s Danone will never quit Morocco
despite its local dairy firm Centrale Danone having lost more than 50
percent of its market share in fresh milk due to a consumer boycott,
Danone’s chief executive said on Tuesday.

 

Unknown activists launched a consumer boycott campaign on April 20 against
major suppliers of milk, bottled water and petrol in Morocco, protesting
against high prices.

 

Centrale Danone was targeted along with Afriquia fuel stations and the Sidi
Ali water brand.

 

“Centrale Danone will never leave Morocco,” Emmanuel Faber told reporters
during a visit to the country’s commercial hub of Casablanca.

 

But it will take months to address the fallout from the boycott and regain
consumers’ trust, he said.

 

Centrale Danone, almost 100 percent owned by the French firm, also decided
not to pay a dividend, Faber said.

 

To regain the public’s trust the dairy firm was ready to sell milk at the
cost of production without making a profit if a new deal could be reached
with farmers.

 

He did not give any further details.

 

The boycott, launched on Facebook in April, has slashed the company’s sales,
which warned this month it expects a loss of 150 million dirhams in the six
months ending June 30, down from a profit of 56 million dirhams in the same
period a year ago.

 

The other companies targeted by the boycott have declined to comment.

 

Online campaigners have accused the targeted firms of exploiting their
market position.

 

The government has called for the boycott to end, voicing concern that it
may discourage foreign investors and undermine the domestic dairy sector.

 

Protests over poverty and corruption this year and in 2017 in impoverished
regions of Morocco have been described as the most intense since the 2011
unrest that prompted King Mohammed VI to devolve some of his powers to an
elected parliament.

 

 

 

Gabon oil workers threaten 15-day strike at Total facilities

LIBREVILLE (Reuters) - Gabon’s oil workers’ union ONEP plans to start a
15-day strike at the facilities of French oil firm Total on Sunday if its
demands for higher pay and other benefits are not met, it said in a letter
to Total Gabon.

 

In the letter dated on Monday and seen by Reuters, ONEP also demanded new
bonuses for employees, increased career advancement opportunities and a
reduction in the number of foreign workers.

 

A Total spokeswoman said that Total Gabon had fully consulted workers’
representatives about recent changes in the company’s strategy and that
discussions were continuing to resolve the dispute.

 

The strike would affect all of Total’s facilities in Gabon, including in the
capital Libreville and oil hub of Port Gentil.

 

The threat of strike action follows the company’s failure to respond to the
union’s earlier demands made in May, the letter said.

 

The Central African nation produces about 200,000 barrels per day (bpd) of
crude, according to the U.S. Energy Information Administration, but output
from the OPEC member’s ageing fields has plummeted from a 1997 peak of
370,000 bpd.

 

A steep fall in oil prices in 2014 and 2015 cut much needed revenue and
forced companies to lay off thousands of oil workers.

 

Total produces about 54,000 barrels of oil equivalent per day in Gabon.

 

 

 

Land, mining uncertainty threatens South Africa growth - Moody's

JOHANNESBURG (Reuters) - South Africa’s economic growth prospects will be
limited by weak business confidence while uncertainty around land and mining
reforms remain a concern for investors, ratings agency Moody’s said on
Tuesday.

 

South Africa’s President Cyril Ramaphosa has outlined plans to redistribute
land without compensation to address racial inequalities that persist more
than two decades after the end of apartheid. Government critics have
expressed concern that those plans could infringe on property rights.
[nL5N1ST1D9]

 

The government also plans to increase the ownership stake for black people
at mining companies to 30 percent from 26 percent within five years as well
as other requirements aimed at benefiting communities - moves that have been
contested by mining firms. [nL8N1TH4SH]

 

“Uncertainty over how this (land reform) will be achieved continues to limit
near-term investment,” Moody’s analyst and senior credit officer Lucie Villa
said in a report.

 

“(It) could ultimately lead to a more pronounced fall in investment should
the final terms of land reform be particularly onerous to businesses.”

 

Moody’s is the last of the top three major rating agencies to rate the
country’s debt in investment grade. It affirmed that rating in March and
revised its outlook to stable from negative citing an improving policy
framework. [nL8N1R571B]

 

Moody’s said in the report it projects gross domestic product at 1.6 percent
in 2018 and 2.1 percent in 2019.

 

The Treasury’s forecasts growth at 1.5 percent and 1.8 percent respectively
for the same period, although Finance Minister Nhlanhla Nene has said these
could revised upwards.

 

Nene is one of many new ministers appointed by Ramaphosa who has promised to
turn around the ailing economy after taking over in February from Jacob
Zuma. The former president has been blamed for the country’s many fiscal and
policy missteps over the past decade. Zuma denies any wrongdoing.

 

 

 

Old Mutual returns to African roots with Johannesburg listing

JOHANNESBURG (Reuters) - Old Mutual Plc returned to its South African roots
on Tuesday when it listed its $11 billion (8.31 billion pounds) African
financial services business in Johannesburg, a move which largely completes
a major overhaul of the company.

 

The 173-year old group has been disentangling its conglomerate structure
created after a series of acquisitions since it moved its headquarters and
primary listing to London in 1999.

 

Chief Executive Bruce Hemphill set the break-up in motion in 2016, saying
the company’s four main businesses — a U.S. asset manager, a British wealth
manager, an African financial services division and a South African bank —
would achieve higher investor ratings as separate entities.

 

Old Mutual Plc’s African financial services business, Old Mutual Ltd, listed
roughly 5 billion shares on Tuesday. They traded at 29.39 rand each during
the session, valuing the company at roughly 145 billion rand ($10.7
billion).

 

Old Mutual Ltd, now the parent to what is left of Old Mutual plc, will also
have a standard listing in London, and secondary listings on the stock
exchanges of Malawi, Namibia, and Zimbabwe.

 

Hundreds of Old Mutual Ltd’s employees, blowing green vuzuzelas and beating
drums, danced through the streets of Johannesburg ahead of the listing.

 

“What’s most exciting about our listing as an independent, standalone entity
is that it enables us to unlock shareholder value and create a business with
a strong strategic focus on sub-Saharan Africa,” Old Mutual Ltd’s chief
executive Peter Moyo said.

 

MUTUAL AID

Old Mutual, which traces its roots back to the mid-19th as South Africa’s
first mutual aid society with 166 members, has already sold its U.S. asset
management business and on Monday separately listed its U.K wealth arm,
renamed Quilter.

 

The break-up is part of a growing global trend for conglomerates to hive off
bits of their businesses, sometimes in response to pressure from activist
investors.

 

General Electric said earlier on Tuesday it would spin out its healthcare
business and sell its stake in oil firm Baker Hughes, leaving the U.S.
company focused on jet engines, power plants and renewable energy

 

“The nice thing about this Old Mutual break up is that you now have a
vehicle that’s purely emerging market, if you want to buy that, and another
vehicle that’s purely UK,” Michael Treherne, a portfolio manager at Vestact,
said.

 

Later this year, Old Mutual’s African business will spin off part of its 53
percent interest in South Africa’s fourth largest lender, Nedbank.

 

Old Mutual, which will retain a roughly 20 percent stake in Nedbank, bought
into the bank in 1986 when it was forced by apartheid South Africa’s strict
capital controls into being a major shareholder in several local companies.

 

The company’s head office in London will be wound down this year. It has
been cutting staff in London since it first announced the demerger two years
ago. Staff numbers in London are expected to fall to around 40 this year
from 120, Old Mutual has said.

 

 

 

BMW says Brexit customs costs would push up prices

BMW has told the BBC the cost of any new customs arrangements after Brexit
would push up the price of its cars.

 

Ian Robertson, BMW's UK special representative, said new border systems and
warehousing would add to the cost of making cars such as the Mini.

 

He said: "It's a potential risk... we would like to avoid."

 

But he said BMW would be forced to invest in new customs systems by late
summer if there was no clarity on the UK's trading relationship with the EU.

 

He told the BBC's Economics Editor Kamal Ahmed that without clarity BMW
would be forced in August or September to prepare for a hard Brexit and
customs delays around a hard border.

 

Mr Robertson said: "Those dates at the end of the summer are quite real.
That's when the contingency plans get applied, and that's when of course we
need to see clarity."

 

But he added that BMW had no intention of moving its manufacturing operation
outside the UK.

 

"We would have to start to think about how our trucks are going to be
managed at the border and how our stocks are going to be stored around our
factories," Mr Robertson said.

 

"It puts a burden on industry. It puts a burden on us to find ways around
it, when ultimately we should be focussed on more constructive issues.

 

"Our customers have expectations as to the value in their cars. They see
innovation and technology as having a value. I can tell you, I have never
heard one that says there's a value in customs."

 

Japanese support

While the Society of Motor Manufacturers and Traders said that investment in
the UK's car industry had halved in the last year because of Brexit
uncertainty, some companies such as Toyota have continued to invest in the
UK.

 

In a separate interview, Kōji Tsuruoka, Japanese Ambassador to the UK, told
Kamal Ahmed that the UK still had a strong appeal for Japanese car
companies.

 

He said: "The UK is an industrialised, very strong R&D supported economy,
and there is flexibility in moving toward the future of the industry. The
referendum result did not necessarily affect the attraction or the strength
of the UK R&D high-tech basis, and you still see Japanese investment coming
to those sectors of the UK economy.

 

"But when it comes to trade, and market availability, they will have to
reconsider, if there is any obstruction for doing trade with a major market
to which they export from the UK - and the EU market is certainly one of
them. They will watch very carefully and very cautiously."

 

In May, BMW was part of a group of business leaders including the heads of
BP, Nestle, and Vodafone, who told Theresa May at a Downing Street meeting
that a trade deal with the EU must be "as frictionless as with a customs
union".

 

BMW employs 8,000 people in its UK manufacturing operation and another
14,000 in its retailer network.

 

It manufactures Minis near Oxford, Mini body panels in Swindon, Rolls-Royce
cars at its Goodwood plant and petrol engines at Hams Hall in
Warwickshire.--BBC

 

 

Donald Trump: Harley-Davidsons should "never" be made abroad

Donald Trump has said Harley-Davidsons should "never" be built abroad, as he
attacked the firm's plans to move some production overseas to avoid European
tariffs.

 

Mr Trump said the iconic bike brand's new Thailand plant marked a
"surrender" and "the beginning of the end".

 

Last week, the EU imposed retaliatory tariffs on US goods, including
bourbon, orange juice and motorcycles.

 

Harley-Davidson says the increased costs are a "substantial" burden.

 

The EU tariffs are a response to new US duties on steel and aluminium
imports.

 

Mr Trump also accused Harley-Davidson of making the decision to move some
production to Thailand before the current trade dispute erupted, and of
using the tariffs as an "excuse".

 

But the firm - which also has plants in Australia, Brazil and India - said
it planned the new plant after Mr Trump withdrew from the Trans-Pacific
Partnership (TPP) trade deal, which would have lowered tariffs in Asia.

 

Taking aim at the iconic motorcycle brand on Twitter, the president said the
company's employees and customers were "already very angry at them" because
"they surrendered, they quit!"

 

Mr Trump also said if they continued with their plan to move production to
Thailand, "the Aura will be gone and they will be taxed like never before!"

 

In a series of posts, the president suggested Harley Davidson would not be
able to sell bikes back into the US from Thailand "without paying a big
tax".

 

However Harley-Davidson says it operates four factories in the US.

 

Mr Trump's row with the bike brand began on Monday after Harley-Davidson
said manufacturing for the European market would be transferred from the US
to other countries.

 

He expressed surprise that the company had become "the first to wave the
white flag", adding: "I fought hard for them."

 

He also said the US was "opening up closed markets" with its new tariff
system, and said the country would soon finish its study into tariffs on car
imports from the European Union.

 

Mr Trump previously threatened to impose a 20% tariffs on EU cars after the
bloc imposed its retaliatory tariffs.

 

White House press secretary Sarah Sanders also told reporters at a briefing
on Monday that the EU was "attempting to punish US workers with unfair and
discriminatory trade policies".

 

"President Trump will continue to push for free, fair and reciprocal trade,
in hopes that the EU will join us," Ms Sanders said.

 

Absorbing costs of EU tariffs

Harley-Davidson says it will raise investment in its international plants,
though it did not say which ones, adding that it expected the increase in
production to take nine to 18 months.

 

It said the tariffs would add, on average, $2,200 (£1,660) to each bike
exported to Europe from the US as the import tax increases from 6% to 31%.

 

The company, which sold nearly 40,000 motorcycles in Europe last year, said
it planned to absorb those costs rather than pass them on to customers and
risk damaging sales.

 

Some US unions however are not supportive of the motorbike maker's decision
to move production abroad.

 

The International Association of Machinists and Aerospace Workers, which
represents some Harley employees and has supported some of the president's
tariff announcements, said the decision was "in keeping with Harley's past
decisions to open plants outside of North America."

 

"Will Harley use any excuse to ship jobs overseas?" said Robert Martinez Jr,
the union's international president. "Does Harley even understand what 'Made
in America' means?"

 

United Steelworkers, which also represents Harley workers and has backed
tariffs, said it does not know yet how the company's decision will affect
employment.

 

"Domestic sales are what drive production and employment at Harley's US
facilities," said Michael Bolton, a district director for United
Steelworkers, who added that the company should focus on US production if it
wants "to continue to market itself as an iconic American brand".

 

 

Harley-Davidson's move is one of the most visible consequences of the trade
disputes triggered by President Trump's decision to levy tariffs on steel
and aluminium imports.

 

Mr Trump says the duties are necessary to protect the US steel and aluminium
industries, which he says are vital to national security.

 

They have drawn retaliation from the EU, Canada, Mexico, India and others
while driving up the cost of metals for US manufacturers.

 

US companies ranging from boat-builders to nail manufacturers have warned
about the consequences of escalating trade tensions.

 

 

In Wisconsin people are caught in the middle of a battle between two of the
biggest American brands - Harley Davidson and Trump.

 

Not that everyone wants to choose.

 

Leaving work at the state's best-known business one woman said very simply:
"I love my company and I love my President."

 

Wisconsin turned Republican red in the last presidential election having
been wooed by Donald Trump and his message of putting America First.

 

If jobs end up being a casualty in a trade war their loyalty will be tested.
But for the moment most of those who voted for Trump seem to be keeping
their faith in him.

 

Many believe the furious words that led to these tit-for-tat tariffs are
just part of negotiation tactics.

 

The problem for Harley Davidson is that at the moment nobody is backing down
and to export to the European Union they are already having to pay the price
of this trade skirmish.

 

At Harley Davidson's sprawling Menomonee Falls factory there were employees
prepared to admit that inside people were talking about tariffs and the
danger of job losses.

 

That is causing obvious nervousness.

 

But for the moment they have no greater insight into the company's plans
than that raw statement which said it would have to move some more of its
production overseas--BBC

 

 

 

Brexit: Businesses and unions call for urgency

Business and union leaders from across the UK and Europe have joined
together to plead for "pace and urgency" in Brexit negotiations.

 

The CBI and the TUC along with their European counterparts are calling on
the UK government and the European Union to make "measureable progress".

 

UK and EU leaders will attend a European Council meeting this week.

 

The groups say the UK and the EU must "put economic interests and people's
jobs, rights and livelihoods first".

 

The CBI, BusinessEurope, the TUC and the European Trade Union Confederation
(ETUC) collectively represent 45 million workers and 20 million employers
across the EU.

 

In a joint statement, they said: "We are calling on the UK government and
the EU to inject pace and urgency in the negotiations, bringing about
measurable progress, in particular a backstop arrangement to avoid a hard
border in Ireland.

 

Brexit: All you need to know

Business Brexit 'threats' wrong says Hunt

"Decisions will be needed in June and October to finalise the withdrawal
agreement and the transitional arrangement, and put economic interests and
people's jobs, rights and livelihoods first."

 

UK Prime Minister Theresa May will attend the European Council meeting on
28-29 June. However, she will be excluded from a gathering of the other 27
EU nations where chief negotiator Michel Barnier will provide on update on
Brexit talks.

 

Carolyn Fairbairn and Markus Beyrer, the director-generals of the CBI and
BusinessEurope respectively, as well as Luca Visentini and Frances O'Grady,
the general secretaries of the ETUC and the TUC, met earlier this month in
London to discuss Brexit.

 

Ahead of the European Council meeting they said: "The UK government and the
EU will need to agree on all aspects of regulatory alignment, which is of
the utmost importance, without jeopardising the integrity of the single
market."

 

A spokesman for the UK government said: "We absolutely agree. That's why we
have put forward workable proposals to the EU on a range of areas from the
backstop to security, and the White Paper - which will be published after
June Council - will continue to drive this process forward.

 

"We are confident that we can make progress if both the EU and UK engage
constructively."--BBC

 

 

 

Uber granted short-term licence to operate in London

Uber has been granted a short-term licence to operate in London following a
court hearing.

 

Transport for London (TfL) refused to renew the licence when it expired last
September, saying the US taxi app was not a "fit and proper" operator.

 

Uber has now been awarded a licence but it has been put on probation for 15
months.

 

The company had been seeking a five-year licence when it was refused last
year.

 

Following a two-day hearing at Westminster Magistrates' Court, Chief
Magistrate Emma Arbuthnot said Uber was now considered "fit and proper".

 

She ordered the company to pay TfL's legal costs of £425,000.

 

*         Uber changes app following TfL concerns over licensing

*         Uber drops English language test appeal for London drivers

*         Call for women-only Uber Pools for London

*         Uber to introduce limit on drivers' hours

London mayor Sadiq Khan said: "After years of operating poorly in London,
Uber has now accepted that TfL's action in refusing to renew their licence
was totally justified. Today our stance has been vindicated by the court.

 

"Uber has been put on probation - their 15 month licence has a clear set of
conditions that TfL will thoroughly monitor and enforce."

 

Tom Elvidge, Uber's UK general manager, said he was pleased with today's
decision: "We will continue to work with TfL to address their concerns and
earn their trust, while providing the best possible service for our
customers."

 

'Disturbing'

One of the areas of concern that TfL highlighted last year was about how
Uber reported crime.

 

The company said that it had made "wholesale" changes to the business since
last September.

 

This includes reporting crimes directly to the police instead of logging
criminal complaints with TfL, which caused delays.

 

During this week's hearing, Helen Chapman, the licensing, regulation and
charging director at TfL, said that Uber's behaviour over reporting
allegations to police was "very disturbing".

 

So in the end the humility strategy worked.

 

When Transport for London denied Uber a new licence last September, the
company responded aggressively promising to see the regulator in court over
its anti-competitive ruling.

 

But by the time this week's hearing started it was in full retreat.

 

For much of the hearing, Chief Magistrate Emma Arbuthnot seemed unconvinced
- Uber had shown a gung-ho attitude, determined to grow its business come
what may.

 

She wanted reassurance that the people who'd been responsible for statements
of questionable honesty in the past had gone and that the culture really had
changed. But for the arrival of the "impressive" Laurel Powers-Freeling as
non-executive chairman she might have been disinclined to grant a new
licence.

 

So Uber is now free to continue operating in a very important market - but
on probation with Transport for London watching its every move.

 

A taxi-driver who sat through the hearing was unimpressed - "three strikes
and you're in" he told me.

 

But something has changed. Uber once thought it could go round the world
ignoring local rules - now other cities may follow London in attempting to
clip its wings.

 

She said: "I think we have had five years of a very difficult relationship
where Uber has felt they haven't required regulation and being operated in
the same way as everybody else we regulate."

 

Ms Chapman said that the changes implemented by Uber "could, if applied
correctly, enhance public safety".

 

Public safety

TfL said the way the firm was run had potential public safety and security
implications when it decided not to renew its licence to operate in London
last year - a decision backed by Mr Khan.

 

In particular, it highlighted Uber's approach to reporting serious criminal
offences, how medical certificates are obtained and background checks on
drivers.

 

Among the changes implemented by Uber, drivers can now only use the app in
the region in which they hold a private hire licence and their working hours
are more tightly regulated.

 

A licensed driver on the app has to now take an uninterrupted six-hour break
after 10 hours of taking passengers or travelling to pick them up.

 

The firm also made changes to its app in London to "make it clearer" to
passengers that its drivers are licensed by TfL and that it accepts ride
requests before allocating drivers.

 

It also dropped an appeal against a move that would make all its drivers in
the city take English language tests.--BBC

 

 

 

Brexit: Car investment slumps as 'uncertainty bites'

Investment in Britain's car industry has fallen by half, according to
figures from the motoring sector.

 

The Society of Motor Manufacturers & Traders (SMMT) said that Brexit
uncertainty was "thwarting" decisions by major car companies to put more
money into UK factories.

 

In the first six months of 2017, investment in new models and factory
improvements stood at £647.4m.

 

This year, the figure had fallen to £347.3m for the same period.

 

The SMMT said this was lowest figure since the financial crisis.

 

The trade body said that the government's "red lines" on Brexit and
"conflicting messages" were working "directly against the interests of the
UK automotive sector".

 

Its chief executive, Mike Hawes, told the BBC that the industry needed
"clarity" and demanded that Britain stay within the customs union and that a
"no deal" scenario - where the UK leaves the customs union and the single
market with no preferential trading deal - would be "the worse option
imaginable".

 

UK car industry "will get good Brexit deal", says minister

Carmakers fear rising trade barriers after Brexit

Supply chains which rely on millions of car and truck parts moving freely
between the UK and the EU would face disruption.

 

 

The government said the UK's car industry was a success story and that it
was working for a deal that was mutually beneficial to both sides and as
"friction free" as possible.

 

Since the referendum a number of car makers, such as Nissan, have announced
additional investment in Britain.

 

'Frustration in boardrooms'

I asked Mr Hawes what the effect would be if there was no "deal" with the EU
agreed before the end of the year.

 

"It won't be an overnight closure but it could be a death by a thousand
cuts," he told me.

 

"Gradually the competitiveness of the UK is eroded, making it that much
harder to attract the investment, and it's the investment that makes it [the
UK car sector] so competitive.

 

"We still need to see significant additional progress [on Brexit].

 

He said: "We still don't know what our future trading relationship is going
to be, not just with Europe, but with some of the other countries with which
the EU has free trade agreements which are important to this industry as
well.

 

"There's undoubtedly frustration in boardrooms at the slow pace of
negotiations.

 

Mr Hawes said: "The way the industry works - with investments over four or
five years - you will see over the next couple of years, particular plants
will reach that decision point. What we have seen over the last six months
is that investment has been declining.

 

"Investment in the automotive industry is always a bit lumpy, but if you
match what is happening in terms of total investment with what we hear, we
are seeing companies sitting on their hands for as long as possible.

 

"But it reaches the point you have to make that decision, that's when you
need the clarity," he added.

 

'No credible plan B'

The SMMT's annual Sustainability Report says that the automotive sector had
a strong 2017 as investments made a number of years ago came to fruition.

 

Employment levels rose by over 5% to 186,000 and the sector's total revenues
hit a record £82bn.

 

"There is no credible 'plan B' for frictionless customs arrangements, nor is
it realistic to expect that new trade deals can be agreed with the rest of
the world that will replicate the immense value of trade with the EU." Mr
Hawes said.

 

"The government must rethink its position on the customs union.

 

He said: "There is no Brexit dividend for our industry, particularly in what
is an increasingly hostile and protectionist global trading environment.

 

"Our message to government is that until it can demonstrate exactly how a
new model for customs and trade with the EU can replicate the benefits we
currently enjoy, don't change it."

 

He said both of the government's options for cross-border arrangements
post-Brexit - the so-called "maximum facilitation" or "customs partnership"
models - were complex, expensive and not deliverable over a short period of
time.

 

The government said that, out of the EU, Britain could look to strike new
trade deals with markets such as America and China.

 

Global trade

More stories on global trade issues:

 

*         Hit them in the Harleys: EU fights Trump tariffs

*         Is the European Union a 'protectionist racket'?

*         New Zealand happy to forget the UK's 'betrayal'

*         Trump's double threat to global free trade

"We're confident of securing a good deal with the EU that's mutually
beneficial, and allows for the most free and frictionless trade with our
European neighbours," a spokesperson said.

 

"The UK automotive industry remains one of our great success stories and a
whole host of companies have recently committed to investing billions of
pounds in the sector, including Nissan, Toyota, BMW and Vauxhall.

 

"Through our modern Industrial Strategy and landmark Automotive Sector Deal,
we are working with the sector to put the UK at the forefront of new
automotive technologies to ensure we remain the destination of choice for
future investment."--BBC

 

 

 

European readers still blocked from some US news sites

Major American news sites, including the Los Angeles Times and the New York
Daily News, remain unavailable to readers in the EU, a month after new data
protection rules were implemented.

 

The websites went dark in Europe after the General Data Protection
Regulation (GDPR) law came into force on 25 May.

 

GDPR gives EU citizens more rights over how their information is used.

 

A statement on the blocked websites says the publishers are "committed to
looking at options" to allow EU access.

 

News sites within the Tronc and Lee Enterprises media publishing groups are
affected.

 

Tronc's high-profile sites include the Chicago Tribune, the Orlando Sentinel
and the Baltimore Sun.

 

The company recently sold the Los Angeles Times and the San Diego
Union-Tribune to billionaire Patrick Soon-Shiong.

 

Its websites carry the same message they did one month ago.

 

It reads: "Unfortunately, our website is currently unavailable in most
European countries. We are engaged on the issue and committed to looking at
options that support our full range of digital offerings to the EU market."

 

Websites belonging to the Lee Enterprises publishing group are also blocked.

 

The company, which runs 46 daily newspapers across 21 states, originally
said its sites were "temporarily unavailable" - but browsers in the EU are
now greeted with a message informing them that access is "unavailable due to
legal reasons".

 

Under GDPR, companies working in the EU, or providing a service to people
within the EU, must show they have a lawful basis for processing personal
data, or face hefty fines.

 

There are six legal bases for using personal data, including getting express
consent from consumers. However, in most cases companies must also show that
they need the personal data for a specific purpose.

 

In the aftermath of the law's introduction, the Washington Post and Time
were among those requiring EU users to agree to new terms.

 

The BBC has approached Tronc and Lee Enterprises for comment.--BBC

 

 

 

Brexit prompts Heathrow operator Ferrovial to move international HQ out of
UK

Heathrow airport's operator is moving its international HQ from the UK to
Amsterdam because of Brexit.

 

Spanish-owned Ferrovial says it needs to keep within EU legislation after
the UK leaves the EU.

 

The company currently runs its US, Canadian, Polish and UK operations, which
includes Heathrow, from Oxford.

 

Ferrovial is the largest shareholder in Heathrow with a 25% stake, and in
the UK it also owns Aberdeen, Glasgow and Southampton airports.

 

A company spokesperson said: "The reason for the move is to maintain the
group's international companies under the umbrella of [EU] legislation."

 

Ferrovial moved to Oxford just three years ago to the former headquarters of
construction group Amey which is bought in 2004.

 

In the past few days, several companies have expressed worries over the
impact of the UK leaving the EU.

 

Last week, Airbus warned that it could leave the UK if the country exits the
European Union single market and customs union without a transition deal.

 

The Society of Motor Manufacturers & Traders has said that Brexit
uncertainty is "thwarting" decisions by major car companies to put more
money into UK factories.

 

Its comments came as it said investment in Britain's car industry had fallen
to its lowest level since the financial crisis in the first half of the
year.--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.

 


 

 


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