Major International Business Headlines Brief::: 01 March 2018

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Major International Business Headlines Brief::: 01 March 2018

 


 

 


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*  S.Africa economic confidence to get a lift after cabinet reshuffle

*  Barclays Africa reports higher annual profit, aided by fall in impairments

*  Saudi Aramco to supply Egyptian refineries for 6 months - minister

*  South Africa's cabinet considering expanding zero-rated VAT basket

*  South Africa's rand at 2-week low as global headwinds, Fed jitters kick-in

*  Kenya shilling stable, horticulture export flows help

*  Steinhoff says cash "dried up" following accounting scandal

*  Is Spotify really worth $23bn?

*  Dick's Sporting Goods and Walmart announce new gun restrictions

*  Toyota to build next generation of Auris in UK

*  Dyson creates 300 new electric car jobs

*  Brexit: No deal would be 'hugely damaging' to car industry

*  Trump reaches informal Air Force One deal with Boeing

*  US slaps fresh tariffs on Chinese aluminium

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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S.Africa economic confidence to get a lift after cabinet reshuffle

JOHANNESBURG (Reuters) - Confidence in South Africa’s economy will get a boost after Monday’s cabinet reshuffle by President Cyril Ramaphosa returned trusted hands to crucial budget-related ministries, a Reuters poll showed on Thursday.

 

Seventeen of the 20 economists surveyed in the past three days said Monday’s reshuffle would have a significant positive impact on South Africa’s economic confidence this year.

 

One economist said it would be very significant, while the remaining two said it would have an insignificant impact.

 

In that same sample, 18 indicated they were optimistic the country’s business sector would play a bigger part in job creation in the next two years. One economist was very optimistic while the remaining one was pessimistic.

 

“Both business and consumer confidence is likely to be boosted by the election of Cyril Ramaphosa to President of the Republic and the cabinet reshuffle that (followed),” said Jeffrey Schultz, economist at BNP Paribas in Johannesburg.

 

South Africa’s business confidence rose for a third month in a row in January to its highest since late 2015, on expectations the new leadership of the ruling party would stabilise economic policy, a survey showed last month.

 

“President Ramaphosa clearly has his sights set on improving the domestic business climate and promoting more public-private sector participation,” said Schultz.

 

Gross domestic fixed investment - normally capital spending, such as buying new machinery for future production - fell into a recession in 2016, recovering only slightly early last year before hitting another slump in the second quarter.

 

The private sector makes up nearly two-thirds of the gross domestic fixed investment contribution to GDP, although it has played a smaller role in recent years, with government pushing infrastructure projects to raise jobs.

 

Schultz added that it would take some time for the trust between business and the government to be rebuilt, but it was clear the new government has realised it needs business sector buy-in to get growth and reduce unemployment.

 

Unemployment was at just over 20 percent a decade ago and now more than a quarter of South Africa’s labour force is jobless.

 

OLD TRUSTED HANDS BACK AT HELM

Ramaphosa appointed Nhlanhla Nene as finance minister on Monday and Pravin Gordhan as public enterprise minister. All but one of the 20 economists polled singled out these two National Executive appointments as most likely to inspire economic confidence.

 

Both Nene and Gordhan served as finance ministers in the last administration but were unceremoniously sacked by former President Jacob Zuma.

 

A poll last month suggested South Africa’s new leadership would need to be prudent and creative in managing the economy to avoid a credit rating downgrade, by raising taxes without suffocating a chance for growth. [ECILT/ZA]

 

Moody’s is due to publish a revie

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Barclays Africa reports higher annual profit, aided by fall in impairments

(Reuters) - Barclays Africa Group, South Africa’s No.2 lender by market value, reported a 4 percent rise in annual profit on Thursday, thanks to a substantial decline in impairments. Normalised diluted headline EPS, the primary measure of profit in South Africa that strips out one-off items, came in at 1,837.7 cents in the year ended December compared with 1,769.4 a year earlier.

 

Net interest income, an important gauge of lending profitability, inched up 1 percent to 42.32 billion rand, while net interest margin was unchanged at 4.95 percent.

 

Credit impairments fell 20 percent to 7.0 billion rand, Barclays Africa said. Credit impairments occur when there has been a deterioration in the creditworthiness of an individual or entity.

 

Growth in the United States was the positive surprise in the second half, even as Euro area, Japan and China grew at or above consensus, Barclays Africa said.

 

This more than made up for slow economic expansion in larger markets that account for about 80 percent of the group’s income, including South Africa.

 

Barclays Africa, along with rivals, has struggled to increase lending as slowing economic growth in many African markets tempers demand from corporate clients and rising interest rates at home hit consumption by retail customers.

 

But the election earlier this month of Cyril Ramaphosa as president, pledging to revitalise the economy, has boosted confidence.

 

Barclays Africa said it expected growth in loans and deposits to improve in 2018 and forecast stronger loan growth at constant currency from the rest of Africa. It also expected stronger loan growth in corporate and investment banking than in retail banking in South Africa.

 

The group also forecast modest improvement in gross domestic product for South Africa to 1.4 percent in 2018.

 

 

 

Saudi Aramco to supply Egyptian refineries for 6 months - minister

CAIRO (Reuters) - Saudi Aramco, the world’s largest oil producer, agreed to supply Egyptian refineries with crude oil for six months, starting January 2018, Egypt’s Petroleum Minister Tarek El Molla told Reuters on Thursday.

 

Aramco will supply 500,000 barrels per month of crude oil to Egyptian refineries, Molla added.

 

 

 

South Africa's cabinet considering expanding zero-rated VAT basket

CAPE TOWN (Reuters) - South Africa’s cabinet may expand the basket of zero-rated value-added tax (VAT) items after it was hiked by 1 percentage point in last week’s budget, the minister of communications said on Thursday.

 

Treasury said last Wednesday VAT would be raised for the first time in 25 years as part of efforts to cut the budget deficit, stabilise debt and raise revenues for free tertiary education.

 

The decision to raise the tax was seen a daring one by the government as it risked upsetting already strained relationship between the ruling African National Congress (ANC) and its trade union and communist party allies.

 

“As a response to concerns raised on the VAT tax increases proposed, cabinet is also considering expanding the list of basic goods that are zero-rated on VAT,” communications minister Nomvula Mokonyane told a media briefing.

 

The move to raise VAT to 15 percent from 14 starting in April is expected to generate an additional 23 billion rand ($2 billion) of revenue in 2018/19.

 

The ANC also said on Sunday that it wants to alleviate the impact on the poor of an increase in value-added tax by adding more zero-rated and tax-free items.

 

The tax increase was however welcomed by ratings agencies who have raised concerns about Pretoria’s falling ability to boost revenues without resorting to excessive borrowing, criticism has come from broad sectors of society.

 

 

South Africa's rand at 2-week low as global headwinds, Fed jitters kick-in

JOHANNESBURG (Reuters) - South Africa’s rand slipped to its lowest in two weeks on Thursday, succumbing to month end demand for dollars by local firms as the increasing chances of higher interest rates in the United States lured bulls back into long-dollar positions.

 

At 0640 GMT the rand was 0.4 percent weaker at 11.8350 per dollar, its softest level since February 14, compared to an overnight close of 11.7875.

 

It was the first time in more than two weeks the rand closed above technical support around 11.80, after weakening for three consecutive sessions, prompting some technical selling as well as portfolio rebalancing by corporates offloading excess rands.

 

Analysts said the “Ramaphosa effect”, named for the rise in investor confidence and rally in local assets after new president Cyril Ramaphosa took over as chief of the ruling African National Congress (ANC) in December, was now giving way to global headwinds.

 

“With the cabinet reshuffle out of the way, our local assets will continue to reprice in line with the global macro environment,” said fixed income trader at Rand Merchant Bank Gordon Kerr in a note.

 

The dollar index remained near 5-week highs early on Thursday, still drawing support after the Federal Reserve’s new chief Jerome Powell struck an optimistic tone on the U.S. economy, raising bets of at least four rate hikes by the bank in 2018.

 

Stocks opened softer with the benchmark Top-40 index down 0.13 percent.

 

Bonds were also softer, with the yield on the benchmark paper due in 2026 up 4 basis points to 8.165 percent.

 

 

Kenya shilling stable, horticulture export flows help

NAIROBI (Reuters) - The Kenyan shilling was stable against the dollar on Thursday supported by healthy hard currency inflows from horticulture exports.

 

At 0618 GMT, commercial banks quoted the shilling at 101.30/40 per dollar, unchanged from Wednesday’s close.

 

 

Steinhoff says cash "dried up" following accounting scandal

JOHANNESBURG (Reuters) - South Africa’s Steinhoff International (SNHJ.J) said its working capital “dried up” and revenue from its multinational retail operations fell in the first quarter after it became embroiled in an accounting scandal.

 

The retailer has been fighting for survival after it discovered accounting irregularities in December which sparked a sell-off in the shares that wiped more than $10 billion off its stock market value and led to multiple investigations globally.

 

Revenue for the period to end-December fell by 5 percent to 4.86 billion euros ($6 billion).

 

“The group’s essential working capital, especially in its businesses outside of South Africa, largely dried up as the access of our operating businesses to their banking facilities and other credit lines was severely constrained,” the company’s acting chairwoman, Heather Sonn, said in a statement.

 

Steinhoff was “working hard to uncover the truth and to prosecute wrongdoing” and was also cooperating with regulators, she said.

 

The company, which owns more than 40 retail brands around the world including Conforama, Mattress Firm and Poundland, also said many of its international businesses, particularly its European businesses, were at risk of failing to meet their financial obligations.

 

Sonn said the group, which has suspended dividend payouts until after the end of June to convince creditors to waive some payments, is engaging with lenders over the coming months.

 

“These waivers are intended to create a window of stability to enable management to consider the group’s financial indebtedness in conjunction with the group’s financial creditors,” said Sonn.

 

Roughly 2 billion of Steinhoff’s 10.7 billion euros in debt matures this year.

 

The firm warned in January that it will have to restate its 2015 accounts and maybe earlier figures, having already cautioned on its 2016 numbers. A review being carried out by auditors PwC suggested that accounting irregularities may stretch beyond 2015.

 

Steinhoff International Holdings NV

544.0

SNHJ.JJOHANNESBURG STOCK EXCHANGE

-36.00(-6.21%)

SNHJ.J

SNHJ.J

PwC has already conducted interviews with certain group executives, both current and former, and has collected raw data from computers, cell phones, servers and documents.

 

“It is not possible at this stage to provide any definitive timing for conclusion of the PwC investigation,” said Sonn.

 

A Dutch court last week ordered Steinhoff to amend its 2016 accounts, handing victory to a former business partner in a dispute over the ownership of discount furniture store chain POCO.

 

Steinhoff’s share price closed up 0.35 percent to 5.80 rand, down more than 80 percent since the scandal broke and its chief executive resigned in December. The company’s trading statement was released after markets had closed.

 

($1 = 0.8203 euros)

 

 

 

Is Spotify really worth $23bn?

Spotify, the world's biggest music streaming service, has filed paperwork to start trading its shares publicly on the New York Stock Exchange.

 

The firm said it expects shares to sell at prices that could value the business at more than $23bn (£16.7bn).

 

The Swedish company will list shares directly on the NYSE, bypassing the traditional stock offering process.

 

In a typical public offering, companies issue new shares, with the initial price underwritten by investment banks.

 

With a direct listing, current Spotify shareholders will take their shares straight to the market.

 

The move provides an exit for early investors looking to cash in on the company's growth, but is not intended to help the business raise significant new money.

 

"It's about a company that is letting its investors get their returns so it can move on to the next stage of its career," said Mark Mulligan, a UK-based music industry analyst at MIDiA Research.

 

Spotify, which launched its streaming service in 2008, is now active in 61 countries, boasting 159 million monthly active users and 71 million paid subscribers.

 

The fact that Spotify exists at all is something of a minor miracle: unknown Swedish company convinces major record labels to upload millions upon millions of songs for people to listen to without buying them. It must have been quite the pitch.

 

Sure, the labels get royalties but it's pennies - fractions of pennies - on what they used to get from "traditional" online sales.

 

Regardless, it's been clear for a long time that streaming is the music industry's future.

 

On Wednesday, Spotify announced it would go public - but that's not to say its here to stay. The company has long been surrounded by threats, and it's no different today.

 

Apple, Amazon and Google are all in the music streaming game, all with direct hardware with which to serve its users music. Spotify doesn't.

 

And while Spotify has signed deals with all the "big three" record labels - Warner, Universal and Sony - it's the music executives that still hold the bargaining chips.

 

Calculating value

Spotify said its shares sold for between $37.50 and $125 each in private transactions last year and more than $132 this year. The company's potential valuation is based on a combination of stock price and how many shares it has outstanding.

 

The prices shared by Spotify suggest a range of $6.3bn to more than $23bn.

 

The higher figure would make Spotify one of the biggest public debuts of a tech company since 2012, said Kathleen Smith, principal at Renaissance Capital, which provides institutional research and manages exchange traded funds focused on new public companies.

 

She cautioned, however, that private investors have tended to value firms more highly than public markets in recent years.

 

Snap, owner of Snapchat, for example also had an almost $30bn market capitalisation after its first day of trading last year, but it has struggled to sustain that figure.

 

"This could be an issue - could it possibly sustain those valuations?" she said.

 

In its filing with the Securities and Exchange Commission, Spotify said it has incurred operating losses since its inception and experienced more than €1.2bn in losses in 2017.

 

But other key metrics, including revenue, are moving in the right direction, Mr Mulligan said.

 

The firm earned €4bn in revenue last year, rising almost 40% from €2.95bn in 2016, according to the filing.

 

Europe is its largest region, with 58 million monthly active users, followed by North America. It is also making inroads in Latin America and other parts of the world.

 

Churn rates, which measure cancellation, have fallen, while the time spent using the service has increased.

 

"All of that stuff paint a really strong story to investors that they're on the right path," Mr Mulligan said.

 

Future plans

In its filing, Spotify says it aims to "unlock the potential of human creativity by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by these creators."

 

The firm said it had paid more than €8bn in royalties to artists, music labels, and publishers since its launch.

 

The filing also hinted at plans to expand beyond music into other forms of radio.

 

"With our ad-supported service, we believe there is a large opportunity to grow users and gain market share from traditional terrestrial radio," it said.

 

The filing says the firm expects to sell $1bn worth in shares, but the figure is a placeholder used to calculate the registration fee. The document does not provide information about when the listing would occur.--BBC

 

 

Dick's Sporting Goods and Walmart announce new gun restrictions

Two major US retailers have announced new restrictions on gun sales following the shooting at a Florida school where 17 people died.

 

Dick's Sporting Goods, which has more than 600 shops, said it would no longer sell assault-style rifles, and backed "common sense gun reform".

 

Walmart later said it was raising the minimum age for anyone buying guns or ammunition to 21 years.

 

It came as Marjory Stoneman Douglas High School pupils returned to classes.

 

Grief counsellors were on hand as students and teachers arrived at the campus, two weeks after 17 of their peers were shot dead by an expelled former student with an AR-15 rifle.

 

In the aftermath of the 14 February shooting, pressure has mounted on US politicians to act on gun control and for corporations to cut ties with the powerful National Rifle Association (NRA).

 

Firms including Hertz car rental, United airlines and Delta airlines have ended discounts to NRA members.

 

Trump: Lawmakers 'afraid' of US gun lobby

Florida school officer defends his actions

‘Spike in school threats’ after gun rampage

Walmart, the largest seller of guns in the US, said it would remove items from its website that resembled assault-style rifles.

 

The retailer stopped selling high-powered rifles in its shops in 2015, citing low demand.

 

In a statement, Walmart said: "We take seriously our obligation to be a responsible seller of firearms."

 

In Washington, President Donald Trump urged a group of lawmakers with diverse views to come up with a comprehensive bipartisan solution in a televised meeting.

 

Republican leaders in Congress have rejected raising the minimum legal age to buy rifles from 18 to 21, but Mr Trump said he "would give pretty serious thought to it", despite opposition from the NRA, which supported him as a candidate.

 

He told the lawmakers: "Some of you people are petrified of the NRA, you can't be petrified."

 

Also on Wednesday, a teacher in the state of Georgia was arrested after barricading himself in a classroom and firing a handgun. No-one was injured.

 

In announcing its policy change, Dick's Sporting Goods said in a statement that it had "tremendous respect and admiration for the students organising and making their voices heard regarding gun violence in schools and elsewhere in our country".

 

It added: "We have heard you. The nation has heard you."

 

The retailer said it was committing itself to:

 

*         No longer selling assault-style rifles (The company had stopped selling such weapons at its main shops after the 2012 Sandy Hook shooting but 35 shops run by a subsidiary called Field & Stream had continued to do so)

*         Banning the sale of high-capacity magazines that allow more shots to be fired without reloading

*         Not selling any firearms to anyone under the age of 21

*         It said that while it supported the Second Amendment to the US constitution, which protects the right to keep and bear arms, "gun violence is an epidemic that's taking the lives of too many people".

 

Dick's CEO Edward Stack told CNN he expected a backlash from some customers, saying "the hunt business is an important part of the business, no doubt about it".

 

The Parkland shooting suspect, 19-year-old Nikolas Cruz, bought a gun at Dick's but not the weapon he is alleged to have used in the attack, Mr Stack said.

 

US gun lobby 'doesn't back any ban'

School to close over church rifle event

Demi Lovato brings Florida survivors on stage

"We did everything by the book, and we did everything that the law required, and he was still able to buy a gun," he told ABC.

 

Emotional return

At Marjory Stoneman Douglas High School, a line of police officers, school staff and community members bearing flowers greeted some 3,000 students who returned to classes on Wednesday morning. There were also many reporters, shouting questions to the teenagers about how they felt.

 

Lyliah Skinner, a 16-year-old student, told the BBC before she left home: "We're not going to really be learning much today - it's all about healing."

 

She also said she was feeling nervous "because I'm scared it's gonna happen again". Lyliah listed people she knew who would not be returning, including Joaquin Oliver, who sat just in front of her in a class they shared.

 

David Hogg, a senior student and now leading activist, was also feeling trepidation. It was "really hard to think about" what occurred two weeks ago, he said.

 

"Imagine getting in a plane crash and having to get back on the same plane again and again and again and being expected to learn and act like nothing's wrong," he told NBC News.

 

Florida shooting: Who are the victims?

#WhatIf hashtag used to debate gun control

The handling of the shooting by authorities sparked criticism after it emerged that the FBI and local police had failed to follow up on multiple tips about Mr Cruz, and that an armed deputy at the school had stayed outside the school building while the attack took place.

 

The school's Building 12, the site of the shootings, will remain closed and cordoned off indefinitely.

 

Armed school 'marshals'

Members of Florida's State House and Senate will soon begin reviewing proposed bills related to firearms, which need their approval and also that of Governor Rick Scott.

 

Among other restrictions, they would raise the legal age to buy rifles from 18 to 21 and giving police more control to seize weapons from mentally ill people.

 

A controversial $67m voluntary programme to arm school staff, including teachers, would ensure they were trained by law enforcement and allowed to carry concealed weapons on campus, according to the New York Times.--BBC

 

 

 

Toyota to build next generation of Auris in UK

Toyota has said it will build the next generation of its Auris hatchback at its Burnaston plant in Derbyshire.

 

The Japanese carmaker also said its Deeside factory in North Wales would build most of its engines.

 

It comes after Toyota promised to invest £240m in upgrading Burnaston last March.

 

There are fears some carmakers could desert the UK because of Brexit if new trade barriers threaten their competitive position.

 

Toyota said the move would secure more than 3,000 jobs across its Burnaston and Deeside plants.

 

The car industry has warned Brexit could lead to potential tariffs on exports and disrupt its largely European supply chain.

 

And earlier this month, industry body the Society of Motor Manufacturers said investment in the UK automotive sector fell by a third last year, as companies wait for certainty over the country's future relationship with the EU.

 

'Free and frictionless'

However, a number of big carmakers have committed to building more cars in the UK since the Brexit vote in June 2016.

 

In November 2016, Nissan announced plans to build the next generation of Qashqai and X-Trail sports utility vehicles at its Sunderland factory, while BMW has said it will assemble its electric Mini in Oxford.

 

Analysis: Theo Leggett, business correspondent

Without doubt, it's good news for Toyota's UK plants. But an announcement like this was always likely.

 

Toyota has already spent more than £2.5bn in this country, far more than at any of its other European bases. That's not the kind of investment you turn your back on.

 

Last year, it said it would spend £240m preparing Burnaston to build a new generation of cars. This is the first of those new models.

 

The company is portraying its decision as a vote of confidence in the UK. But it comes with a warning: continued free and frictionless trade with Europe will be vital for future success.

 

In other words, it is firmly committed to the UK for now. But that commitment is not open-ended or unconditional.

 

Dr Johan van Zyl, president of Toyota Europe, said: "Today's announcement that we will manufacture the new Auris at Burnaston, with most engines to be supplied from Deeside, shows our confidence in the skills and capabilities of our Toyota UK members."

 

However, he added: "As a company, we are doing what we can to secure the competitiveness of our UK operations as a leading manufacturing centre for our European business.

 

"With around 85% of our UK vehicle production exported to European markets, continued free and frictionless trade between the UK and Europe will be vital for future success."

 

The government has also pledged to support the competitiveness of the UK sector after Brexit, and has invested £20m in Burnaston alongside Toyota.

 

Business Secretary Greg Clark said Toyota's decision to build the new Auris model in Burnaston was "testament to the highly-skilled and committed workforce that helps make the UK's automotive sector one of the most productive in the world".

 

A Toyota spokesman said the Auris would be built at Burnaston "for the life of the model". While it could not say how long that might be, typically this would last five years.

 

The spokesman would not comment on the future of the Avensis, the other car Toyota builds in Britain, saying the firm did not comment on future product issues.--BBC

 

 

Dyson creates 300 new electric car jobs

Dyson is seeking an extra 300 engineers in a push to build its first electric car by 2020.

 

Best known for its vacuum cleaners and hand dryers, the firm caused a stir when it announced plans for a battery powered vehicle.

 

Dyson already has a 400-strong team working on the project and has doubled the number of scientists working on its battery programmes over the past year.

 

The jobs news came as it revealed 2017 underlying earnings rose 27% to £801m.

 

Dyson to make electric cars from 2020

 

Dyson settles legal dispute with ex-chief

 

Dyson said the electric car team - which up until now has been based in its Malmesbury headquarters in the Cotswolds - would shortly move to its new research and development base in Hullavington in Wiltshire.

 

The privately-owned firm is yet to decide where its electric cars - once they have been designed - will be manufactured.

 

The UK is reported to be in contention for the work, along with Singapore, Malaysia and China.

 

'Asia enthusiasm'

High demand in Asia was the biggest drivers of last year's performance, with Japan, China, Taiwan and Korea together accounting for almost three quarters of 2017 sales.

 

Media captionThe skills shortage pushing Dyson to Asia

Billionaire founder James Dyson said people in Asia had "an extraordinary enthusiasm for technology that works".

 

Sir James also said the firm had "moved on" from its dispute with former Dyson chief executive Max Conze over the alleged disclosure of confidential information.

 

The allegations were vehemently denied by Mr Conze, and Dyson settled out of court in December.

 

Mr Conze worked for the company for six years before being replaced in October by chief operating officer Jim Rowan.--BBC

 

 

Brexit: No deal would be 'hugely damaging' to car industry

BMW has said it will assemble its electric Mini in Oxford.

Failing to strike a Brexit deal would put "hundreds of thousands" of jobs in the car industry at risk, MPs have said.

 

The Business, Energy and Industrial Strategy Committee said continued close alignment with the EU would ensure the industry's survival.

 

And it warned the introduction of trade barriers would leave the sector unable to compete with its European rivals.

 

The government said it wanted a deal that maintains the industry's strength.

 

In a report published on Thursday, the Business, Energy and Industrial Strategy (BEIS) Committee said the UK car industry was largely export-led with Europe as the primary market.

 

The sector's success was built on "complex supply chains" that stretch throughout Europe, it said.

 

If trade barriers were erected after Brexit, it could cost the sector upwards of £4.5bn in lost exports, the committee said. Jobs and inward investment worth "hundreds of millions of pounds" would also be lost.

 

'Damage limitation'

The committee said it was "unrealistic" to think new trade deals could offset the damage of a "hard Brexit", whereby Britain left the single market and the customs union and began trading with the EU as if it were any other country, based on World Trade Organization rules.

 

And it said any form of divergence with the EU would come with costs for carmakers, urging the government to focus on "damage limitation" in its talks with the bloc.

 

"There is no credible argument to suggest there are advantages to be gained from Brexit for the UK car industry," Rachel Reeves MP, chair of the BEIS Committee, said.

 

"Regulatory consistency and friction-free trade benefits car companies, consumers and car-workers.

 

"The Prime Minister now needs to ensure common-sense pragmatism prevails and spell out the Government's intention to seek continued regulatory and trading alignment with the EU in the automotive sector."

 

Continued confidence

Despite the car industry's concerns about Brexit, a string of big manufacturers have committed to building more vehicles in Britain since the EU referendum.

 

In November 2016, Nissan announced plans to build the next generation of Qashqai and X-Trail sports utility vehicles at its Sunderland factory, while BMW has said it will assemble its electric Mini in Oxford.

 

On Monday Toyota said it would make its next generation Auris hatchback at its Burnaston plant in Derbyshire, protecting 3,000 jobs.

 

The government has also pledged to support the competitiveness of the UK sector after Britain leaves the EU, and has invested £20m in Burnaston alongside Toyota.

 

In a statement, BEIS said the industry was an "incredible success story... supporting almost half a million people in high-skilled, well-paid jobs".

 

It added: "The government is seeking a partnership that delivers the maximum possible benefits for both the UK and EU economies, and maintains the strength of our world-leading automotive sector.

 

Good for consumers?

"From production to distribution, numerous companies in this sector around the UK and Europe are highly dependent on each other which is why we must ensure cross-border trade is as free and frictionless as possible post-Brexit."

 

Patrick Minford, chair of the Economists for Free Trade group, formerly known as Economists for Brexit, said: "The car industry... opposes free trade which would involve strong competition from other world suppliers currently kept out of the UK market by high EU trade barriers.

 

"However gains from free trade will bring big benefits to UK consumers, lowering consumer prices by 8% and boosting GDP by around 4% by raising competition and productivity."--BBC

 

 

 

Trump reaches informal Air Force One deal with Boeing

President Donald Trump has reached an informal deal with Boeing to provide two Air Force One planes for $3.9bn (£2.8bn), the White House has said.

 

A White House spokesperson said the agreement would save US taxpayers more than $1.4bn.

 

The deal follows a row over the cost of the planes. In December 2016, Mr Trump said they were too expensive and the order should be cancelled.

 

Boeing said that Mr Trump had "negotiated a good deal".

 

In a statement, the US aerospace giant said: "Boeing is proud to build the next generation of Air Force One, providing American Presidents with a flying White House at outstanding value to taxpayers".

 

A Boeing official said the price included fitting out the two 747-8 planes with a communications suite each, internal and external stairs, and large galleys and other equipment.

 

In addition, there are structural changes that have been made to the aircraft "to protect and sustain the president and those on board for an extended period of time", the official said.

 

The planes are designed to be an airborne White House, able to fly in worst-case security scenarios, such as nuclear war, and are modified with military avionics, advanced communications and a self-defence system.

 

The government had a contract with Boeing to build two or more new planes. But in 2016, before Mr Trump was president, he tweeted that they were too expensive.

 

"Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!" he said.

 

At the time, The White House appeared to cast doubt on the figures quoted by Mr Trump.

 

"Some of the statistics that have been cited, shall we say, don't appear to reflect the nature of the financial arrangement between Boeing and the Department of Defence," White House spokesman Josh Earnest said.

 

The $1.4bn Mr Trump claimed would be saved on the new planes has not been independently verified.

 

US aerospace analyst Richard Aboulafia said Boeing would only have so much room to offer discounts given the high proportion of third party equipment that would be used on the aircraft.

 

"There's no evidence of a discount," he said adding that the White House was engaging in "political theatre".

 

Technically, "Air Force One" is a call sign for any aircraft carrying the US president.

 

However the term is mostly used to refer to the current fleet - two highly customised Boeing 747-200B jets, which have been in service since 1990.

 

The planes are:

 

*         Capable of in-flight refuelling, and equipped with secure communications equipment

*         Inside, the president and his travel companions enjoy 4,000 sq feet (400 sq m) of floor space on three levels

*         This includes a presidential suite as well as quarters for advisers, Secret Service officers, and the travelling press corps

*         A medical suite can function as an operating room, and a doctor is always on board

*         The plane's two food preparation galleys can feed 100 people at a time.--BBC

 

 

 

US slaps fresh tariffs on Chinese aluminium

The US says it will slap tougher tariffs on Chinese aluminium alloy after an investigation into the trade.

 

The Commerce Department said the metal was being sold below cost or with government subsidies - making it impossible for US producers to compete.

 

Beijing has expressed "strong dissatisfaction" with the step and said China would pursue its legal rights.

 

The decision came as China's top economic advisor Liu He arrived in the US to discuss tensions over trade.

 

The duties will be levied on several Chinese firms - ranging from almost 50% to more than 100%.

 

But the decision still needs to be backed by the International Trade Commission (ITC), which is due to announce its decision by March 15.

 

'Unfair imports'

The tariffs follow what Washington called an "historic" probe to push President Donald Trump's tough-on-trade agenda.

 

"This Administration is committed to trade that is fair and reciprocal, and we will not allow American workers and businesses to be harmed by unfair imports," Commerce Secretary Wilbur Ross explained in a statement.

 

China's would take measures to protect its rights and interests, the country's Ministry of Commerce said.

 

What could China do in a US trade war?

World trade: What will Donald Trump do?

The US investigation was launched in November last year, shortly after President Trump and US Commerce Secretary Wilbur Ross visited China.

 

In 2016, imports of aluminium foil from China were valued at an estimated $389m (£280m), according to the Commerce Department.

 

And it said it had evidence that the imports pose a threat to US industry.

 

Under the Obama administration, the US complained to the World Trade Organisation about aluminium subsidies in China.

 

But the Trump administration has embraced a more go-it-alone approach.

 

In April last year, the Commerce Department launched a separate investigation into steel and aluminium imports on national security grounds.-BBC

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Powerspeed

AGM

Boardroom, Gate 1, Powerspeed Complex, Corner Cripps Road and Kelvin Road North, Graniteside

01 Mar 2018 11am

 


Proplastics

final dividend of 0.26c record date

 

02 Mar 2018

 


Simbisa Brands Limited

EGM

SAZ Building Northend Close, Northridge Park, Borrowdale

09 Mar 2018 8:15am

 


CFI

AGM

Farm & City Boardroom, 1st Floor, Farm & City Complex, 1 Wayne Street

 

12 Mar 2018 11am

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <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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