Major International Business Headlines Brief::: 05 March 2018

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Major International Business Headlines Brief::: 05 March 2018

 


 

 


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

 


 

 


*  Oil major Total expands in Libya, buys Marathon's Waha stake for $450 mln

*  S.Africa cement maker PPC taps Moleketi as chairman

*  South Africa fuel prices to fall in March on stronger rand

*  IMF tells Ghana to adopt new revenue plan before April review

*  South Africa's RCL Foods expands in pet food to beat drought\

*  African telecoms towers operator Helios plans London listing

*  May gets down to business on Brexit

*  The luxury labels coming out of Africa

*  Italy's election: How the economy is performing

*  Trump trade war: China vows retaliation if tariffs bite

*  Trump steps up war of words on trade with threat to tax EU cars

*  China NPC: Economy growth target 'around 6.5%' in 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Oil major Total expands in Libya, buys Marathon's Waha stake for $450 mln

LONDON/TUNIS (Reuters) - French energy company Total substantially raised its presence in Libya with the purchase of a 16.33 percent stake in Libya’s Waha concessions from U.S. Marathon Oil for $450 million on Friday.

 

The deal will give Total access to reserves and resources in excess of 500 million barrels of oil equivalent (boe), with immediate production of around 50,000 boe/d (per day) and“significant exploration potential” in concessions in the Sirte Basin, the company said in a statement.

 

“This acquisition is in line with Total’s strategy to reinforce its portfolio with high quality and low-technical cost assets whilst bolstering our historic strength in the Middle East and North Africa region,” said Total CEO Patrick Pouyanne.

 

Total has been in Libya for decades and holds a production share of 31,500 boe/d in 2017 from concessions in the offshore Al Jurf field and the onshore Sharara field. It also has a share in Mabruk field, which has been closed for several years because of poor security.

 

The Waha Oil Company, a subsidiary of Libya’s state-owned National Oil Corp (NOC), currently produces 300,000 boe/d, which is expected to rise to 400,000 boe/d by the end of the decade, Total said.

 

Other Waha stakeholders are NOC with 59.18 percent, ConocoPhillips with 16.33 percent and Hess with 8.16 percent.

 

The oil industry in OPEC member Libya has staged a partial recovery after being hit by blockades and armed conflict following an uprising seven years ago.

 

National production dropped to lows of about 200,000 barrels per day (bpd), before rebounding to 1 million bpd last summer.

 

It is still well under the 1.6 million bpd Libya was producing before 2011, and the industry has suffered continuing stoppages including the current closure of the southwestern El Feel field due to a protest by guards.

 

Waha is one of Libya’s main export grades. It is shipped from the eastern port of Es Sider, which was blockaded by an armed faction between 2014 and 2016.

 

Es Sider and other ports in Libya’s Oil Crescent are now controlled by the eastern-based Libyan National Army (LNA), which allowed the NOC to reopen them in late 2016.

 

FULL EXIT

Waha’s chairman said in November that the company was aiming to increase output to 375,000 bpd by the end of 2018, but faced major funding shortfalls and challenges in maintaining damaged infrastructure.

 

“Production and reserves growth is a key deal driver,” Woodmac VP for Corporate Analysis Luke Parker said.“There’s certainly upside from where we are today ... Realising this upside would see Total create significant value through the deal.”

 

Marathon's sale marks a full exit from Libya, a move it has been considering since at least mid-2013 but has been prevented from doing so by the NOC. [here]

 

“Our relentless focus on portfolio management has driven seven country exits since 2013 and generated proceeds of over $4 billion just in the last two years,” said Lee Tillman, Marathon president and CEO.

 

In a regulatory filing in 2011, Marathon valued the Waha asset at $761 million. At the time, oil prices were roughly double where they stand today. Brent was trading above $63 a barrel on Friday. [here]

 

“They received what we consider a pretty good price for the asset given that it was considered non-core,” said Jason Gammel, equity analyst at U.S. investment bank Jefferies.

 

He said Total were“probably better able to manage the geopolitical risk of a wide-base of operations across the Middle East.”

 

The Marathon sale marks the second exit for a U.S. company from Libya in recent years.

 

Occidental Petroleum Corp sold a 7 percent stake in the Nafoura oilfield to Austria’s OMV in late 2016.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

S.Africa cement maker PPC taps Moleketi as chairman

JOHANNESBURG (Reuters) - South Africa’s PPC appointed former deputy finance minister Jabu Moleketi as board chairman effective Friday, the cement producer said, just one month after replacing its chief executive.

 

PPC said outgoing chairman Peter Nelson had led the company through difficult times but it was now focused on a new strategy.

 

“Having achieved a number of significant milestones and stabilised the business, the board has now turned its attention to the future ambitions of the company,” it said in an emailed response.

 

Moleketi has served on numerous boards such as the Development Bank of Southern Africa, Brait SE, Remgro, Nedbank Group and mobile phone network operator Vodacom Group.

 

PPC which has operations in six countries across Africa, said last week it had nominated Moleketi as chairman.

 

“We are of the opinion that the fundamentals of the business are strengthening,” said Afrifocus analyst Tinashe Kambadza, adding that its performance was improving with the addition of other African operations.

 

PCC appointed Johan Claassen as CEO and executive director of the group in February.

 

 

 

South Africa fuel prices to fall in March on stronger rand

JOHANNESBURG (Reuters) - The retail price of petrol and the wholesale price of diesel in South Africa will fall on Wednesday after the rand strengthened, the energy department said on Friday.

 

The price of petrol will fall by 36 cents to 13.76 rand per litre in commercial hub Gauteng province. Diesel will go down by 47 cents to 12.09 rand.

 

 

 

IMF tells Ghana to adopt new revenue plan before April review

ACCRA (Reuters) - Ghana must legislate new measures to boost revenues by at least 0.5 percent of gross domestic product before the IMF reviews a $918 million credit deal next month, the Fund said.

 

The West African nation must also outline plans to clean up the financial sector and show stronger commitment to cut debt, including limiting its next Eurobond for budget support to $500 million, IMF said in a document seen by Reuters.

 

Finance Minister Ken Ofori-Atta said last week the government planned to issue up to $2 billion of sovereign issuance by June to pay down debt that hit 68.7 percent of GDP last November and help finance the 2018 budget.

 

Ghana is seeking a combined fifth and sixth review of the IMF programme in early April, government and IMF sources told Reuters. The fifth review, originally scheduled for December, had delayed pending implementation of benchmark structural reforms.

 

“Parliament to adopt revenue measures equivalent to 0.5 percent of GDP (one billion cedis) by March 31 and do more later,” the Fund said. The document, dated Feb. 26, formed the basis for talks between an IMF staff mission and the government this week.

 

The mission left Accra on Thursday after discussing the actions required for the next review, as well as other reforms needed to exit the programme early next year. It is unclear if the talks were conclusive.

 

Ghana, which exports cocoa, gold and oil, is in its final year of the programme, designed to stabilise an economy dogged by high inflation and debt, and low growth.

 

The Fund said the government must publish by end of March an agreement between the Finance ministry and Bank of Ghana to reinforce zero financing of the budget deficit, a core condition of the programme.

 

The government of President Nana Akufo-Addo, inaugurated in January 2017 said it inherited $2.3 billion in accumulated debt owed to power utilities and has launched long-term bonds for repayment. It is also probing unpaid contract arrears of around $1.6 billion.

 

The IMF said while the country made progress, the central bank must adopt a fully market-based foreign exchange management policy and cut non-performing loans.

 

The government aims to cut the budget deficit to 4.5 percent of GDP in 2018 from a revised 6.3 percent while inflation is projected to fall to 8.9 percent. It sees GDP growth at 6.8 percent from a projected 7.9 percent in 2017.

 

 

 

South Africa's RCL Foods expands in pet food to beat drought

RANDFONTEIN, South Africa (Reuters) - South Africa’s RCL Foods has completed a 123 million rand ($10 million) expansion at its pet food plant to help reduce its exposure to a poultry business hit by drought and cheap imports.

 

Food companies in South Africa have been struggling with an El Nino-induced drought that drove up the price of ingredients much as maize, while poultry farmers have also faced competition from Brazil, the European Union and the United States.

 

RCL is aiming to tap into the country’s 5 billion rand ($418 million) a year pet food industry, which is less exposed to individual commodities, as part of a strategy to diversify, CEO Miles Dally said at a plant visit late on Thursday.

 

“Ideally we would like less impact from things like drought and dumping,” he said.

 

“Our vision has always been clear, to create a major food business,” he added, referring to the pet food division.

 

RCL’s expansion in Randfontein, west of Johannesburg, will boost its pet food production to 12,000 tonnes per month from 7,000 tonnes.

 

The company, which saw first-half profit plunge 54 percent last year, this week reported an increase for the first six months of its current financial year, boosted by a decline in input costs and higher chicken prices.

 

The firm cited lower poultry imports, which were reduced in part by an outbreak of bird flu in Europe.

 

RCL’s pet food business, which has annual revenue of around 1 billion rand, aims to grow by as much as 20 percent a year, Dally said, adding the firm would look for acquisitions to bolster the business.

 

The company currently produces over 20 brands including Rainbow chicken products, Nola mayonnaise, Yum Yum peanut butter, Bobtail dog food and Selati sugar products.

 

RCL cut 1,350 jobs and reduced production by 50 percent at its Hammersdale factory in the KwaZulu-Natal province in November 2016 as the chicken imports and drought took a toll.

 

($1 = 11.9204 rand)

 

 

 

African telecoms towers operator Helios plans London listing

London (Reuters) - African mobile towers operator Helios Towers plans to list on the London Stock Exchange in early April, it said on Friday, with an expected valuation of about 2 billion pounds ($2.75 billion).

 

Helios is the third African mobile towers business scheduled to float in 2018, with IHS Towers and Eaton Towers also preparing for listings to fund infrastructure investment as economic growth in Africa drives increased use of smartphones and demand for data.

 

“The demographics and growth prospects of the countries we serve are compelling and, with our well invested towers base, we can continue to meet the needs of mobile network operators,” said CEO Kash Pandya, adding that this will boost margins and top-line growth.

 

The company, which raised $600 million through a bond issue last year, also filed for a secondary listing on the Johannesburg Stock Exchange (JSE).

 

Helios Towers owns about 6,600 telecoms towers in Ghana, Tanzania, Congo Brazzaville and the Democratic Republic of Congo.

 

It is owned by telecoms companies Millicom and Bharti Airtel and hedge funds including Soros Fund Management and Rothschild Investment Trust Capital Partners.

 

In 2017 it reported core profit of $146 million on revenue of $345 million, with net debt up 57 percent at $595.2 million.

 

($1 = 0.7261 pounds)

 

 

 

May gets down to business on Brexit

Theresa May's speech was another key milestone in the Brexit process and for once business leaders did not leave totally disappointed.

 

What business will most appreciate is that this was not a complacent speech.

 

It acknowledged the scale and complexity of the task in hand and made some pragmatic concessions to the realities of trade with the EU.

 

Most of those concessions will please the business community, but some may not satisfy members of her party.

 

Perhaps the most eye-catching passage for business was the prime minister's indication that the UK would be prepared to pay to remain a member of some European regulatory agencies, such as the European Medicines Agency or the European Aviation Safety Authority.

 

As the regulations change, the UK parliament could choose to enact an identical law - or not - but failing to do so would be in the knowledge that it might affect our membership of the agency.

 

So parliament remains sovereign but in practice would probably not use that sovereignty in case we got booted out of the agency. That will sound suspiciously like rule taking to some Brexit firebrands.

 

She also accepted that on goods regulations, UK standards would have to be at least as high as the EU's - so, no bonfire of regulation that frankly no one in the business world wanted anyway.

 

On services, which accounts for about three quarters of the UK economy, she conceded that services had never been included in any meaningful way in previous deals and this accepted this part would be tough.

 

'New partnership'

The tone was strongest on financial services. She said that London was the most important financial centre in the world and the UK taxpayers take the risk of being its home - so the UK could never be a rule taker.

 

She called for a collaborative, objective framework that was mutually agreed and permanent. That would mean "equivalence" (which the EU already grants to some third countries) is probably not good enough as it can be terminated at short notice. She said Phillip Hammond would expand upon the UK's ideas on this shortly.

 

On customs, it seems that a new "partnership" with the EU has become the favourite option. This would require the UK to enforce both its own customs arrangements and act as agent for the EU when goods arrive in the UK bound for the EU.

 

This option sounds mindbogglingly complex and business will need to see much more detail to be convinced that the government has a solid answer to a very important question for them - and the future of the border on island of Ireland.

 

As Adam Marshall of the BCC said: "The prime minister was clearer and more realistic than ever before on the political choices and economic trade-offs ahead."

 

The financial services lobby group, TheCityUK, praised her for making "a detailed and practical proposition and it should put to rest any suggestion that the UK has not made its intentions and ambitions clear".

 

Was it cherry picking? To an extent - but she had a neat if simplistic answer to this. Every trade deal involves a bit of cherry picking and the EU does it too in its differing approaches to its deals with South Korea and Canada.

 

The EU's chief negotiator Michel Barnier tweeted:

 

Mrs May also said the two sides were close to agreement on an implementation period. Some members of her own party would rather not agree to that until they know what they are implementing - but it will be music to the ears of many businesses who are close to pulling the trigger on contingency plans in case of a no deal scenario.

 

That threat seemed to be in retreat in the prime minister's tone. While Nigel Farage called it a negotiating mistake, it will be a relief to most businesses.

 

 

 

The luxury labels coming out of Africa

Luxury labels from the African continent are expanding rapidly and some hope they will become the next generation of global household names.

 

The global luxury goods industry is worth more than $1.5bn (£1bn), according to research by global business consulting firm, Bain & Company. This market is expected to grow by up to 5% annually over the next three years.

 

The new wave of brands targeted at big spenders could mean brands from Africa might start competing with some of the best known labels in the world.

 

That said, a look at the top luxury goods companies shows European countries and the United States still dominate the industry. The question is, how soon until we start seeing African brands take a place alongside the leading luxury powerhouses?

 

Vania Leles is one of many African-owned luxury firms integrating the continent into their brand ethos.

 

Born and raised in Guinea-Bissau, the gemmologist set up her London-based jewellery shop called Vanleles Diamonds in 2011. Seven years on, the shop is now based in Mayfair, placed between French brands Cartier and Chanel.

 

She said that Africa was a source of inspiration for her, particularly childhood memories of trips around the continent - she travelled to around 15 countries between the ages of 15 and 18.

 

Most of the gemstones used in the jewellery shop are from ethical sources across Africa, she said.

 

"Probably 80-90% [of gems and diamonds] come from Africa, but you don't see brands saying: 'These diamonds are from Botswana.' I think it's about time that we champion our own natural resources."

 

Ms Leles explains that the popularity of Colombian emeralds and Burmese rubies is not rooted in their real value, but instead it is to do with branding and marketing.

 

"Money being thrown into it, auction houses buying into it, big brands advocating it. When we talk about how popular the Colombian emeralds are, there's been a great investment in marketing.

 

"But in terms of beauty and value, Zambian emeralds are just as beautiful and are just as valuable. It's just a matter of educating the general consumer."

 

Ms Leles consciously places the brand's heritage at the heart of its identity, heavily marketing the origins of her gems in contrast to other jewellers.

 

Black beauty products for Hong Kong

High-end department shop Harrods is host to Epara Skincare, a beauty product that blends African botanical ingredients such as argan oil, shea butter and liquorice root extract. Each pot comes with a price tag of more than $100.

 

Epara's founder, Ozohu Adoh, created the brand specifically to address the beauty concerns of women of colour, but she has noticed the product's appeal has extended beyond her target market.

 

"When I did my original business model, I thought our biggest market would be London and then some select countries in Africa. So I was very surprised when I was approached by an agent in Hong Kong saying they would like to sell the brand. That's been one of our biggest orders to date."

 

Ms Adoh sees parallels between her brand and Asian beauty labels that have crossed over to appeal to women of all heritages.

 

"We have [seen] Korean beauty and Japanese beauty products, which were created for Korean and Japanese women, but have become mainstream and everyone is buying into it."

 

More and more companies like Vanleles and Epara are entering the global market and doing fairly well.

 

Heritage brands like Chanel and Hermès were built over centuries and have had time to develop and be recognised globally.

 

People like branding consultant Uche Pezard think technology can help to fuel a shift in the luxury market to let newcomers leave their mark.

 

'Real footprint'

Ms Pezard, who is the founder of Luxury Connect Africa, says she has noticed a growing demand for luxury products from Africa.

 

According to her, the interest in these products comes from consumers around the world and not just from those living in African or members of the African diaspora.

 

She says: "We're currently in the age of content and consumers consume content before they consume products. People use social media, digital media and the ease of sharing information.

 

"Consumers are generally aware of brands' back stories, heritage stories, authentic stories and people buy into that first before they buy into the products."

 

 

When speaking about her new business platform, Luxury Connect Africa, she explains the aim is to help African companies make the transition into much bigger global businesses.

 

She represents several clothing fashion labels including South Africa's Maxhosa By Laduma, Nigeria's Tiffany Amber and plans to nurture the new wave of heritage luxury brands.

 

In Ms Pezard's opinion, until now many luxury firms from Africa have not been prepared to compete, lacking strong business mechanisms behind them. However, this is gradually changing.

 

"African creators, designers, entrepreneurs and innovators are beginning to take advantage of the new access to international markets whether through e-commerce or social shopping or international travel. They're beginning to gain a real footprint in the international market space."--bbc

 

 

 

Italy's election: How the economy is performing

Italy goes to the polls on Sunday in one of its most contentious votes in years.

 

The economy has become a key battleground for the main parties' campaigns.

 

Italy's economy has started to expand once again, but is still one of the worst performers of the countries in the eurozone.

 

The election battle is proving to be very close, with the latest polls suggesting no political coalition will win a clear majority.

 

Italy vote: Who's who and why it matters

The parties are battling to prove they can take Italy's economy, industry and job market back to pre-crisis levels.

 

However, despite all the pre-election rhetoric, few Italians can really see what has improved since the economic crisis. The road to full recovery has been much harder than many expected.

 

Slow growth

Economic growth - in terms of GDP per head - has been picking up since 2014. However, the pace of growth appears weak compared with other major European economies.

 

Forecasts suggest it would take between five and six years to achieve the rates seen in 2007. Meanwhile some other eurozone nations are experiencing their best growth in the past decade.

 

High debt

Italian debt is now the second worst in Europe after Greece and has reached 132% of GDP.

 

'Made in Italy'

In the field of fashion, food and cars, Italy has had a reputation for excellence and it has exported these all over the world. The "Made in Italy" brand has been rejuvenated thanks to an increase in exports and international interest.

 

Part-time jobs

In 2014, Matteo Renzi's Democratic Party started its job reforms, which have been credited with creating almost one million jobs. However, the latest Italian Institute of Statistics (ISTAT) figures show that nearly 60% of them are part-time roles.

 

Unemployment

The level of part-time work means much lower job security compared with other European countries.

 

In Italy, this seems to have deepened the problem of unemployment - particularly in the southern regions where jobless rates are as high as 29%.

 

Increasing poverty

Although Italy presents itself as one of the top three European economies, high rates of unemployment have caused a steep rise in poverty.

 

The number of Italians at risk of poverty rose from three million in 2006 to 18 million - nearly a third of the entire population - in 2016.

 

Battle against taxes

The top rate of income tax in Italy is one of the highest in Europe, well above the 39% average for top rates across the 28-members of the Union.

 

That's why Silvio Berlusconi has started his own personal battle against high taxation levels and has promised to create a 23% "Flat Tax" for everyone--bbc

 

 

 

Trump trade war: China vows retaliation if tariffs bite

China has warned that it does not want a trade war with the US, but will not sit idly by if its economy is hurt.

 

Zhang Yesui, spokesperson for China's National People's Congress, made the comments amid controversy over Donald Trump's announcement of tariffs on steel and aluminium imports.

 

The US president has also threatened to impose a tax on EU-made cars, and earlier said "trade wars are good".

 

US trading partners, the IMF and the WTO have strongly criticised his moves.

 

What would China do in a US trade war?

Five reasons why trade wars aren't easy to win

Steel tariffs: What impact will they really have?

What does Trump want to do and why?

Mr Trump has decried the "$800 Billion Dollar Yearly Trade Deficit because of our 'very stupid' trade deals and policies", and vowed to end it.

 

On Thursday, he said steel imports would face a 25% tariff and aluminium 10%.

 

Then came Saturday's threat on EU-made cars.

 

In January, he had already announced tariffs on solar panels and washing machines.

 

What are US trading partners making of this?

China's Zhang Yesui said it was natural that "some friction will exist" between the US and China, given the volume of trade between them surpassed $580bn (£420bn) last year.

 

But he said China would take "necessary measures" if its interests were hurt.

 

Canada said tariffs would cause disruption on both sides of the border. Prime Minister Justin Trudeau said he was "confident we're going to continue to be able to defend Canadian industry".

 

EU trade chiefs have reportedly been considering slapping 25% tariffs on around $3.5bn of imports from the US - targeting iconic US exports including Levi's jeans, Harley-Davidson motorbikes and Bourbon whisky.

 

Brazil, Mexico and Japan, that have said they will consider retaliatory steps if the president presses ahead with his plan next week.

 

Where Trump stands on world trade

Has Trump got political support for a trade war?

A number of Republicans have questioned the wisdom of the tariff proposal and have been urging the president to reconsider.

 

Senator Orrin Hatch said American citizens would be made to pay.

 

Senator Ben Sasse agreed that "kooky 18th Century protectionism will jack up prices on American families".

 

Industry bodies like the US Motor and Equipment Manufacturers Association have expressed deep concern.

 

But steelworkers in Pennsylvania and Indiana will welcome Mr Trump's comments.

 

Is Trump right about the trade imbalance?

The US imports steel from more than 100 nations and brings in four times more steel from abroad than it exports.

 

Since 2000, the US steel industry has suffered, with production dropping and the number of employees in steel work falling.

 

The US is the largest export market for EU cars - making up 25% of the €192bn (£171bn; $237bn) worth of motor vehicles the bloc exported in 2016 (China was second with 16%).--bbc

 

 

 

Trump steps up war of words on trade with threat to tax EU cars

US President Donald Trump has stepped up his war of words over trade tariffs, threatening to "apply a tax" on imports of cars from the European Union.

 

Mr Trump said other countries had taken advantage of the US for years because of its "very stupid" trade deals.

 

The trade wrangle began on Thursday when Mr Trump vowed to impose hefty tariffs on steel and aluminium imports.

 

That brought a stiff response from trading partners and criticism from the IMF and WTO.

 

EU trade chiefs have reportedly been considering slapping 25% tariffs on around $3.5bn (£2.5bn) of imports from the US, following Mr Trump's proposal of a 25% tariff on imported steel and 10% on aluminium.

 

They would target iconic US exports including Levi's jeans, Harley-Davidson motorbikes and Bourbon whisky, European Commission head Jean-Claude Juncker said.

 

Five reasons why trade wars aren't easy to win

Steel tariffs: What impact will they really have?

What has Mr Trump said now?

In a tweet on Saturday, the president said: "If the EU wants to further increase their already massive tariffs and barriers on US companies doing business there, we will simply apply a Tax on their Cars which freely pour into the US.

 

"They make it impossible for our cars (and more) to sell there. Big trade imbalance!"

 

A second tweet decried the "$800 Billion Dollar Yearly Trade Deficit because of our 'very stupid' trade deals and policies".

 

Mr Trump added: "Our jobs and wealth are being given to other countries that have taken advantage of us for years. They laugh at what fools our leaders have been. No more!"

 

How many EU-made cars go to the US?

The US is the largest export market for EU cars - making up 25% of the €192bn (£171bn; $237bn) worth of motor vehicles the bloc exported in 2016 (China was second with 16%).

 

Germany is responsible for just over half of the EU's car exports, so new US tariffs would hurt the car industry there. But German carmakers also build hundreds of thousands of cars in the US every year - providing many US jobs that German officials say Mr Trump overlooks.

 

Do fellow Republicans back Mr Trump's trade threats?

A number have questioned the wisdom of the tariff proposal and have been urging the president to reconsider.

 

 

Senator Orrin Hatch said: "I'm very surprised, he's had very bad advice from somebody down there. The people who are going to have to pay these tariffs are going to be the American citizens."

 

Senator Ben Sasse said: "Kooky 18th Century protectionism will jack up prices on American families - and will prompt retaliation."

 

And industry bodies like the US Motor and Equipment Manufacturers Association have expressed deep concern, saying the benefits from the recent cuts in corporation tax "could all be for naught".

 

But Mr Trump's Commerce Secretary Wilbur Ross stood firmly behind the plans, saying the president was "fed up with the continued over-capacity, he's fed up with the subsidisation of exports to us".

 

Why does he want to impose tariffs?

It chimes with his "America First" policy and the narrative that the US is getting a raw deal in its trade relations with other countries.

 

Mr Trump tweeted on Friday that the US was "losing billions of dollars" and would find a trade war "easy to win".

 

The president is using a clause in international trade rules which allows for tariffs for national security reasons.

 

But his move has not come totally out of the blue.

 

The commerce department recommended tariffs in February after conducting a review under rarely invoked national security regulations contained in a 1962 trade law.

 

Mr Trump had already announced tariffs on solar panels and washing machines in January.

 

What has the international response been?

The IMF said others could follow the US leader's precedent by claiming tough trade restrictions were needed to defend national security.

 

Canada said tariffs would cause disruption on both sides of the border. Prime Minister Justin Trudeau slammed the tariffs as "absolutely unacceptable".

 

He told reporters in Ontario he was "confident we're going to continue to be able to defend Canadian industry".

 

It is one of several countries, including Brazil, Mexico and Japan, that have said they will consider retaliatory steps if the president presses ahead with his plan next week.

 

What would China do in a US trade war?

Where Trump stands on world trade

World Trade Organization Director General Roberto Azevedo said: "A trade war is in no-one's interests."

 

But Mr Trump tweeted, "Trade wars are good."

 

Are trade wars good?

Analysis by Theo Leggett, business correspondent

 

If trade wars really were good and easy to win, the World Trade Organization probably wouldn't exist.

 

Most countries believe that negotiations are best carried out and disputes settled through a rules-based system. Introducing trade barriers on a tit-for-tat basis has the potential to harm companies on both sides.

 

But that's unlikely to bother Mr Trump. His campaign rhetoric drew heavily on the perceived threat to traditional US industries from foreign interlopers acting unfairly. He's simply continuing in that vein.

 

And it's unlikely to register much with the steelworkers of Pennsylvania and Indiana. Concerned about their jobs and the future, many will welcome Mr Trump's comments.--bbc

 

 

 

China NPC: Economy growth target 'around 6.5%' in 2018

China has set its 2018 economic growth target at "around 6.5%".

 

The figure, announced at the opening session of the annual National People's Congress, is in line with the country's existing expansion goals.

 

But it is below the 6.9% reported for 2017 - the first time in seven years the pace of growth picked up.

 

The report also said China would clamp down on the kind of financially risky operations which have threatened to cause the collapse of major firms.

 

It follows last months steps by Beijing to take control of insurance and financial giant Anbang.

 

Several other high-profile operations are also having their finances scrutinised by Beijing.

 

China 'won't sit by' in Trump trade war

China crackdown: Who might be next?

How the 'two sessions' will cement Xi's power

China is now the world's second largest economy, but a reliance on borrowing has led to pressing political concerns about debt risk.

 

As expected, the report delivered by Premier Li Keqiang said reining in this risk would be a key policy for the coming year, promising to "see that internal risk controls are tightened in financial institutions" and a "serious crackdown on activities that violate the law like illegal fundraising and financial fraud".

 

'High-quality development'

While many China watchers still believe the GDP numbers are much weaker than the official figures suggest, the country is a key driver of global growth.

 

It has relied heavily on debt-fuelled investment and exports to drive its growth of the past four decades. But Beijing is now focussing on slower but more sustainable consumption-based growth.

 

The report added that the unchanged growth target was "fitting given the fact that China's economy is transitioning from a phase of rapid growth to a stage of high-quality development" and would allow it to "achieve relatively full employment".

 

Other goals mentioned in the report included:

 

Achieving inflation of 3%

Cutting overproduction, including reducing steel capacity by 30 million tonnes and coal by 150 million in 2018

Reining in pollution

Reducing poverty

The report said that China's economics and financial risks were "on the whole manageable".

 

Its debt has risen significantly in recent years, with worrying numbers around corporate and household debt and non-performing bank loans.

 

Local government debt grew 7.5% percent last year to $2.6 trillion, according to figures in January.

 

And the International Monetary Fund (IMF) said recently that the country's debt had ballooned and was now equivalent to 234% of the total output.

 

It said Beijing needed to concentrate less on growth and instead help improve banks' finances, among other efforts.--BBC

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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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