Major International Business Headlines Brief::: 19 March 2018

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Major International Business Headlines Brief::: 19 March 2018

 


 

 


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*  Seven firms bid for majority stake in Zambian oil refinery

*  Angola's growth outlook boosted by oil price, policy shifts: IMF

*  Barclays Kenya launches mobile app, eyes 5 mln new customers

*  South African rand falls as Moody's review nears; stocks down

*  Standard Chartered starts African online banking push in Ivory Coast

*  Kenya's finance minister says rate caps are "unsustainable"

*  Angola inflation slows to 21.47 percent year/year in February

*  South Africa credit downgrade may do less damage than feared

*  Average yields rise on Egypt's three- and nine-month T-bills

*  US-educated Yi Gang becomes head of China's central bank

*  Facebook and Trump data firm accused of 'misleading' MPs

*  Melrose pledges £1bn boost to GKN pension fund

*  China anti-corruption chief Wang Qishan named Xi Jinping's deputy

*  Fixed-odds maximum bet 'should be cut to £30'

*  Tesla boss in line for mega-pay deal

*  Insurers warn of travel premium rise

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Seven firms bid for majority stake in Zambian oil refinery

LUSAKA (Reuters) - Seven firms have submitted bids to buy a majority stake
in Zambia’s sole 24,000 barrel per day Indeni Petroleum Refinery, an
executive at the agency handling the bidding said on Saturday.

 

Zambia Development Agency (ZDA) procurement specialist Mwila Kapita said
Glencore Energy UK Ltd, Vitol SA, China Petroleum Technology and Development
Corporation and Philia Trading were among the firms that had submitted bids.

 

The others are Joint Stock Company Global Security of Russia, Sahara Energy
Resources Limited and a consortium of Beijing Huiersanji Green Chem Company
Limited and AVIC International Holding.

 

Zambia is looking for a strategic partner to work with Indeni Petroleum
Refinery, built in 1973. The oil company is currently 100 percent owned by
the state-controlled Industrial Development Corporation (IDC) Limited.

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Angola's growth outlook boosted by oil price, policy shifts: IMF

LUANDA (Reuters) - Angola’s economic growth prospects are on the rise as
higher oil prices and sounder policies under President Joao Lourenco bring
greater stability to Africa’s second biggest crude exporter, the
International Monetary Fund said on Friday.

 

Angola’s economy is expected to expand by 2.25 percent this year from 1
percent in 2017 and growth should reach 5 percent in the medium-term,
Ricardo Velloso, IMF division chief for Africa, told reporters in Luanda.

 

Since coming to power in September, Lourenco has vowed to revive sub-Saharan
Africa’s third largest economy, attract investment and combat the endemic
corruption that plagued the 38 year rule of his predecessor Jose Eduardo dos
Santos.

 

Velloso said Lourenco’s government had already supported the economy by
devaluing the kwanza currency, promising to reduce debt and restructuring
state oil company Sonangol. He also said higher oil prices had helped.

 

“The Angolan economy is experiencing a mild recovery. The new administration
is rightly focusing on restoring macroeconomic stability and improving
governance,” Velloso said.

 

“Over the medium term, the outlook is for continued gradual recovery in
economic activity but there are risks, including a decline in oil prices and
slippages in implementation of the structural reforms to promote economic
diversification.”

 

The IMF does not think a bailout is necessary despite Angola’s heavy debt
burden and high inflation, saying Lourenco’s reform plans and a buoyant
global debt market should help stabilise public finances, Velloso said.

 

The IMF supports the Angolan government’s policy of extending maturities on
debt rather than restructuring, he said.

 

“With the higher oil price and decent access to external financing for
frontier and emerging markets there isn’t a need for IMF financing for
Angola,” Velloso said in response to a question about a possible bailout.

 

“Obviously if we receive a request we will analyse it with care like with
any member country of the IMF.”

 

Inflation was expected to reach 24.75 percent year-on-year by the end of the
year compared to 22.72 percent in January, the IMF predicts.

 

 

Barclays Kenya launches mobile app, eyes 5 mln new customers

NAIROBI (Reuters) - Barclays Kenya launched an app on Friday to allow
customers to borrow up to 150,000 shillings ($1,484) for 30 days using their
phones.

 

Barclays, a unit of South Africa’s Barclays Africa Group, wants to attract
at least five million new customers in the next five years, up from around
half a million, through mobile phone-based lending, Chief Executive Jeremy
Awori said.

 

Kenyan lenders have been turning to technology in response to competition
from mobile phone-based financial services such as Safaricom’s M-Pesa
platform.

 

Pressure to use mobile channels to cut costs increased when the government
capped lending rates in September 2016, crimping profit margins.

 

“Our focus is to use innovation and technology to develop products that are
more relevant to the emerging needs of our customers,” Awori said.

 

Known as Timiza, Swahili for “Achieve”, the new app’s competitors include
KCB Group’s KCB M-Pesa and CBA Group’s M-Shwari, both operated in
partnership with Safaricom.

 

Equity Group, another top-five lender, offers mobile financial services
through its telecoms subsidiary, Equitel.

 

Awori said the app will allow users, who will access it by dialling a short
code and do not have to be Barclays clients, to buy insurance and to hail
rides through a partnership with local ride-hailing company Little.

 

($1 = 101.1000 Kenyan shillings)

 

 

South African rand falls as Moody's review nears; stocks down

JOHANNESBURG (Reuters) - South Africa’s rand weakened against the dollar on
Friday as investors took a cautious tone towards the currency ahead of
rating decision by Moody’s, while stocks ended the week lower as bourse
heavyweight Naspers fell.

 

At 1600 GMT, the rand traded at 11.9725 per dollar, 0.7 percent weaker than
its New York close on Thursday.

 

“The ZAR has been a little bit on the back foot recently, that tends to tell
us that jitters are crippling in to the market as the Moody’s review
approaches,” said ETM Analytics market analyst Halen Bothma.

 

Moody’s, the only major agency with an investment grade rating on South
African debt but with a downgrade review, is scheduled to make a decision by
March 23.

 

A cut to junk - following downgrades by S&P and Fitch - will see the country
ejected from Citi’s influential World Government Bond Index (WGBI),
triggering up to 100 billion rand ($8.5 billion) in selling by foreign
investors.

 

The rand and stocks largely shrugged off news that former president Jacob
Zuma would be charged with corruption over a 30 billion rand ($2.5 billion)
state arms deal in the late 1990s.

 

“It’s not really a decision that was expected to influence ZAR (rand)
sentiment, the market is a lot more focussed on fundamentals in terms of the
fiscal path of the country,” Bothma said.

 

In fixed income, the yield for the benchmark government bond due in 2026
rose 2 basis points to 8.145 percent.

 

In the equities market, the All-Share index ended the week 0.18 percent
lower to 58,101 points, while the Top-40 index fell 0.37 percent to 51,421.

 

Entertainment and technology firm Naspers weakened for the third straight
session, with traders saying the market heavyweight firm was taking a
breather after a strong run last week.

 

“Naspers has had a very good run recently. I would imagine its just taking a
breather. Technology stocks in the U.S. were also down last night, so I
would imagine its just a follow up from that,” said Greg Katzenellenbogen
Director of Sanlam Private Wealth.

 

Naspers fell 1.66 percent to 3,408 rand.

 

($1 = 11.9697 rand)

 

 

Standard Chartered starts African online banking push in Ivory Coast

ABIDJAN (Reuters) - Standard Chartered launched its first African
online-only bank in Ivory Coast on Friday, joining a wave of lenders seeking
to use new technologies to reach customers in some of the world’s most
under-served markets.

 

Long considered a backwater, Africa has emerged as the world’s No. 2 banking
market in terms of both growth and profitability. Yet there are just five
branches per 100,000 adults, by far the lowest rate in the world.

 

To compete for customers, banks are increasingly taking advantage of
Africa’s deepening mobile phone coverage.

 

Clients of Standard Chartered’s Ivorian bank will be able to open an account
in less than 15 minutes and then use an app on their mobile devices to carry
out all their banking activities.

 

“We have been steadily investing in expanding our footprint in Africa over
the years, and this will continue to be a priority moving forward,” said
Sunil Kaushal, Standard Chartered’s Regional CEO, Africa and Middle East.

 

“Digitising Africa remains at the heart of our business strategy for the
region,” he said, adding that the British bank planned to roll out the model
pioneered in Ivory Coast in other African markets in the coming months.

 

Standard Chartered joins competitors including Lloyds, Kenyan lender CBA’s
M-Shwari and Togo-based Ecobank that are focusing their growth strategies
around digital banking.

 

The number of Africans with bank accounts grew from 170 million in 2012 to
nearly 300 million last year, according to a study published by management
consulting firm McKinsey and Company last month. That figure is expected to
rise to 450 million in the next five years.

 

McKinsey’s survey found that nearly 40 percent of all African banking
customers preferred digital channels for transactions and more than half of
the middle and affluent client segments did.

 

 

 

Kenya's finance minister says rate caps are "unsustainable"

NAIROBI (Reuters) - Caps on commercial interest rates in Kenya are
unsustainable and the government plans to modify them without driving up
lending rates, Finance Minister Henry Rotich said on Friday.

 

Kenya introduced a cap on commercial lending rates in Sept. 2016, setting
them at 4 percentage points above the central bank’s benchmark rate which
stands at 10 percent, to limit the cost of borrowing from commercial banks.

 

It justified the caps at the time, which also set a minimum deposit rate, by
accusing lenders of failing to pass on the benefits of growth in the
industry to consumers through cheaper loans.

 

“This is not sustainable,” Rotich told a news conference, saying officials
were working with parliament to change the law.

 

“It can entail an abolishment or a modification, or complete amendment to
allow flexibility.”

 

Finance ministry officials have said the changes may involve a consumer
protection law that will give banks more flexibility. The chair of the
parliament’s influential budget committee told Reuters the minimum deposit
rate could be removed.

 

Earlier this month, the International Monetary Fund said Kenya had committed
to substantially modify the interest rate caps. [nL5N1QQ013][nL8N1QW05W]

 

 

Angola inflation slows to 21.47 percent year/year in February

LUANDA (Reuters) - Angola’s inflation slowed to 21.47 percent year-on-year
in February compared with 22.72 percent in January, data on the national
statistics agency’s website showed on Friday.

 

Price growth on a month-on-month basis fell to 1.26 percent in February from
1.47 percent previously.

 

 

South Africa credit downgrade may do less damage than feared

LONDON (Reuters) - South Africa will learn soon whether Cyril Ramaphosa’s
first month as president has saved the country’s last remaining investment
grade rating, but even if it hasn’t, a broader rise in optimism should limit
the damage.

 

Moody’s, with a downgrade review on South Africa since last November, is to
make a decision by March 23.

 

A cut to junk - following downgrades by S&P and Fitch - will see the country
ejected from Citi’s influential World Government Bond Index (WGBI),
triggering up to 100 billion rand ($8.5 billion) in selling by foreign
investors.

 

It is a prospect that sends a chill down the spine of the country’s
officials, who know the odds aren’t in their favour.

 

“It is very difficult to read the body language of the rating agencies,” new
Finance Minister Nhlanhla Nene said in London this week, having just meet
with Moody’s. “If there was a downgrade that would have a negative effect”.

 

Moody’s rarely spares those it puts on a downgrade warning. Only seven of
the dozens of countries it has had on review over the last two years have
been reprieved its data shows. South Africa was one of those. None have been
saved twice.

 

As a result, markets seem to be going with the form book.

 

Zsolt Papp, an emerging market debt portfolio manager at JPMorgan Asset
Management points to the ‘spread’, or premium, investors demand to buy South
African government bonds rather than U.S. ones.

 

That spread is now 245 basis points, which is right in line with the average
for ‘BB’ bracket ‘junk’-rated countries like Macedonia and Guatemala or
heavyweights like Turkey and Brazil.

 

“The market is already pricing South Africa as a BB credit,” Papp said,
although he said he was not sure which way the decision will go.

 

For a government, losing ‘investment grade’ status causes pain because it
means certain types of investors — usually big pension funds or Exchange
Traded Funds — are mandated only to buy high-grade debt. They are forced to
sell any bonds which are downgraded to junk.

 

A 2016 World Bank study, which was co-authored by South Africa’s own central
bank, found that being cut to ‘junk’ by at least two of the major ratings
agencies increases a country’s treasury bill rate by almost 200 basis points
on average.

 

South Africa intends to borrow a much smaller-than-usual 4.2 billion rand
($350 million) in T-bills in 2018/19 but any rise in costs won’t help a debt
level which has already more than doubled as a share of GDP over the last
nine years.

 

THE MOODY’S BLUES

But there are some factors that could make South Africa’s experience
different.

 

The World Bank’s analysis looked mainly at foreign currency debt downgrades,
but Moody’s decision is related to the country’s domestic rand-denominated
debt.

 

It is far more important because roughly 90 percent of all South Africa’s
debt is local currency S&P estimates. Around 40 percent of it is held by
foreigners who can be quick to flee when the outlook sours.

 

The World Bank didn’t detect any statistically significant impact from local
currency downgrades. But it did find that the main impact - over two-thirds
of it - came when the first rating agency downgraded a credit to junk.

 

Market reaction to subsequent downgrades is usually far smaller, it noted
bit.ly/2tTzm44

 

Another potentially damage-limiting factor is widely held optimism that
Ramaphosa and his new team will be able repair at least some of the damage
done during Jacob Zuma’s tenure.

 

South African stocks, bonds and currency have all rallied hard since late
last year when Ramaphosa seemed set to become the new party leader. The cost
of insuring against a default has plunged more than 25 percent..

 

Morgan Stanley analysts point out that South African bonds are currently
international investors’ top ‘overweight’ in portfolios linked to another
influential bond index, JPMorgan’s GBI-Emerging Markets.

 

A downgrade would have no impact on South Africa’s membership of the $220
billion GBI-EM index, so funds tracking it could make up for some of forced
selling by Citi WGBI investors.

 

One of the reasons South Africa is still so attractive is that ‘real’
yields, which are the rate of interest its bond offers minus the country’s
inflation rate, are among the highest in emerging markets.

 

There are also those who reckon a downgrade is no longer on the cards, given
the change in leadership and crucial measures unveiled in the recent budget.
This included raising the VAT rate for the first time 25 years.

 

At least 10 big fund managers that Reuters interviewed for this story see a
downgrade now as unlikely.

 

“We don’t expect Moody’s to take any action given the adjustment that we are
expecting from the deficit and VAT measures proposed in the budget,” said
Standard Life Aberdeen portfolio manager Kevin Daly.

 

The budget was welcomed by the S&P and Fitch agencies but Moody’s has stayed
quiet. Finance Minister Nene hopes, however, the agency has been persuaded,
adding: “I think it is a credible story we are telling.”

 

($1 = 11.9577 rand)

 

 

Average yields rise on Egypt's three- and nine-month T-bills

CAIRO (Reuters) - Average yields on Egypt’s three- and nine-month treasury
bills rose marginally at an auction on Sunday, central bank data showed.

 

Yields on the 91-day bills rose to 17.896 percent from 17.888 percent at the
last similar sale a week earlier, and yields on 273-day bills rose to 17.101
percent from 16.942 percent.

 

Egypt’s debt has seen huge demand since the central bank hiked interest
rates by 700 basis points after floating its currency in late 2016.

 

Yields have been coming down since the start of the year, however, and the
central bank cut rates on Feb. 15 for the first time since the float,
lowering key rates by 100 basis points after inflation rates fell to their
lowest in more than a year.

 

Some economists expect further interest rate cuts this year, which could
drive T-bill yields down further still.

 

The central bank monetary policy committee will next convene on March 29.

 

 

US-educated Yi Gang becomes head of China's central bank

US-educated economist Yi Gang has been named the next governor of China's
central bank, replacing Zhou Xiaochuan.

 

Mr Yi joined the People's Bank of China (PBOC) 20 years ago and has been its
deputy governor since 2008.

 

His appointment is being seen as one of ensured continuity as Beijing
continues to try and rein in growing debt and limit risky financial
practices.

 

The announcement was made on the second-last day of the annual sitting of
the National People's Congress.

 

Mr Yi will take over a central bank tasked with the ongoing reform of
China's financial landscape, including encouraging foreign investment into
the financial markets, and monetary policy reform.

 

But he will also take over a bank with new powers.

 

*         China announces big ministry shake-up plan

*         China's 'two sessions' to cement Xi's power

*         Liu He: The brains behind China's economic policy becomes a
vice-premier

*         Charting China's 'great purge' under Xi

*         Last week, as part of sweeping changes to China's central
government structure, the NPC said China's central bank would have increased
control over making new laws and regulations for the banking and insurance
sectors.

 

It was also announced that a newly formed banking and insurance super
regulator, formed out of a merger between the Banking Regulatory Commission
and the China Insurance Regulatory Commission, would oversee all of China's
banking and insurance sector - and would effectively report into the PBOC.

 

The reforms to the banking and finance regulatory systems will see the PBOC
become one of the most powerful bodies in the country.

 

However, unlike the United States and other large democracies, China's
central bank does not operate independently of the government, and so Mr Yi
will ultimately report into President Xi Jinping.

 

At the beginning of the NPC earlier this month, China approved the removal
of the two-term limit on the presidency, effectively allowing Xi Jinping to
remain in power for life.

 

Mr Yi has a degree in economics from Beijing University, together with a
master's degree and PhD in economics from the University of Illinois,
US.--BBC

 

 

 

 

Facebook and Trump data firm accused of 'misleading' MPs

Facebook and a US data firm, Cambridge Analytica, have been accused of
"misleading" Parliament.

 

The Digital, Culture, Media and Sport Committee said both firms must answer
more questions over claims that details from 50 million profiles were
gathered without consent.

 

Facebook suspended the US company, saying it breached its policies.

 

Cambridge Analytica said it does not hold or use any Facebook data. Both
companies deny any wrongdoing.

 

The data firm is primarily known for its role in US President Trump's
election campaign, where it provided details on American voters.

 

Damian Collins, chairman of the Digital Culture Committee, said comments by
Cambridge Analytica chief executive Alexander Nix at a Commons hearing last
month must be explained.

 

Did Cambridge Analytica play a role in the EU referendum?

Mr Collins said reports by the Guardian and the Observer made it "clear that
he [Mr Nix] has deliberately misled the committee and Parliament by giving
false statements".

 

Cambridge Analytica has denied allegations that Mr Nix misled that
committee.

 

Facebook claims Cambridge Analytica, among others, did not destroy all the
data it obtained, which breached its policies.

 

'Avoided questions'

The claims against the company rose to prominence after a former employee
told the Guardian about his time at Cambridge Analytica.

 

Mr Collins also criticised Facebook, saying his committee had "repeatedly"
asked the firm about how companies accessed user data from the website and
if information had been taken without users' consent.

 

He claims that the firm "deliberately avoided answering straight questions"
from the committee by sending witnesses who claimed not to know the answers.

 

"This also creates a false reassurance that Facebook's stated policies are
always robust and effectively policed."

 

He also claimed Facebook had failed to supply evidence of the relationship
between the social media platform and Cambridge Analytica.

 

"The reputation of this company is being damaged by stealth, because of
their constant failure to respond with clarity and authority to the
questions of genuine public interest that are being directed to them.

 

"Someone has to take responsibility for this."

 

A spokesperson for Facebook said that the data collection was not a hack or
a breach.

 

"People knowingly provided their information, no systems were infiltrated,
and no passwords or sensitive pieces of information were stolen or hacked,"
the company said.--BBC

 

 

 

Melrose pledges £1bn boost to GKN pension fund

Turnaround firm Melrose has confirmed it has offered to invest £1bn in
engineering giant GKN's pension fund as it battles to secure a takeover
deal.

 

The move could allay concerns from the pensions watchdog and MPs, who have
called for the deal to be blocked.

 

The offer comes after GKN rejected what Melrose said last week was its final
offer of about £8.1bn.

 

GKN makes parts for planemakers Airbus and Boeing, as well as parts for
Volkswagen and Ford cars.

 

It is one of the UK's largest industrial firms, employing more than 59,000
people globally - 6,000 of them in the UK.

 

Melrose specialises in buying up industrial companies it believes are
undervalued and restructuring them before selling them on. That has raised
fears that GKN could be broken up and sold to overseas owners.

 

The Pensions Regulator had warned previously that the deal could weaken
GKN's ability to meet its pension obligations. Melrose had originally
offered to invest £150m cash into the GKN pension schemes.

 

Airbus warns over GKN takeover bid

Engineering giant GKN rejects new £8bn bid

As part of its defence against the Melrose bid, earlier this month GKN
announced a plan to merge its Driveline business with US auto-engineering
firm Dana, leaving it to focus on the aerospace side of its business.

 

Melrose had criticised the move, arguing that some GKN investors would not
be able to hold the shares in the combined business as they would not be
listed in the UK.

 

However, on Monday, Dana announced that the planned new combined business
would also have its shares listed on the London Stock Exchange, as well as
the New York Stock Exchange, in order to address this issue.

 

GKN's chief executive, Anne Stevens, said: "The listing on the London Stock
Exchange will make it possible for more of our shareholders to participate
in the expected value creation opportunity from the combined Dana and GKN
Driveline business."

 

Under the terms of Melrose's offer, GKN shareholders would receive 81p in
cash and 1.69 new Melrose shares for each GKN share they hold.

 

Announcing the planned higher contribution to GKN's pension fund,
Christopher Miller, chairman of Melrose, said: "GKN's series of
hastily-assembled and ill-considered proposals destroy potential value and
add significant risk.

 

"By accepting the Melrose Offer, GKN shareholders will keep the potential
value of all the GKN assets as majority owners of a much larger business and
a management team with a clearly superior track record.

 

"The proposal we have made to the trustees of up to £1bn of contributions
under our ownership is a clear example of what Melrose does which is good
for pensioners and shareholders alike and shows we are a good custodian for
all stakeholders."

 

Airbus blow

The battle over GKN has been been going on for almost two months, but will
be concluded soon with shareholders having until until 29 March to vote on
the offer from Melrose.

 

Some shareholders have already said they plan to reject the offer, arguing
that the price on offer undervalues the engineering firm.

 

Unions and some customers have also warned over the implications of the
deal.

 

Airbus - GKN's biggest customer - said it would be "practically impossible"
to give new business to GKN if the takeover went ahead.

 

Either deal still needs to be signed off by GKN shareholders.

 

A brief history of GKN

Founded in 1759 as an ironworks in South Wales

 

Involved in aerospace, automotive, materials and manufacturing engineering

 

Operates in 30 countries with 59,000 employees

 

Employs 6,000 staff in the UK, mostly in aerospace and automotive technology

 

Ten UK sites, including Bristol, Cowes, Luton, Portsmouth, Birmingham and
Telford.

 

Chief executive Anne Stephens took over in January--BBC

 

 

China anti-corruption chief Wang Qishan named Xi Jinping's deputy

China's parliament has endorsed Xi Jinping for a second term and appointed
Wang Qishan as his vice-president.

 

The ballot at the National People's Congress unanimously approved Mr Xi
while Mr Wang received 2,969 votes in favour and only one against.

 

Wang Qishan was previously in charge of corruption investigations in China.

 

He is a longstanding ally of President Xi and his elevation is being seen as
a further consolidation of the Chinese leader's power.

 

The recent abolition of term limits for the Chinese presidency extends to
the vice-presidency, giving the position greater significance than before.

 

China's constitution allows the vice-president to "assist" in his superior's
work and to carry out presidential duties on his behalf - meaning Wang
Qishan, possibly in his role for life, could be far more than the figurehead
his predecessors were.

 

China approves 'president for life' change

What if Xi Jinping is president for life?

Who is Wang Qishan?

Mr Wang, 69, has held a number of prominent positions since starting work
for the Chinese Communist Party in the 1980s as a policy researcher.

 

He became mayor of Beijing during the Sars outbreak there in 2003, and was
executive chair of the city's Olympic committee ahead of the 2008 games.

 

In 2007, he joined China's Politburo and in 2009 became then-president Hu
Jintao's chief negotiator in trade talks with the US.

 

Former US treasury secretary Henry Paulson described him at the time as
"decisive and inquisitive", and possessing a "wicked sense of humour".

 

However, Mr Wang is best known for his most recent post - leading China's
anti-corruption investigation.

 

The campaign, controlled by Mr Wang as head of the Central Commission for
Discipline Inspection, was launched in 2012 under the then newly appointed
party leader, Xi Jinping.

 

Charting China's 'great purge' under Xi

During President Xi's first five years in office, 1.34 million officials at
high and low levels - people Mr Xi disparaged as "tigers and flies" - were
brought down by corruption and disciplinary charges.

 

Mr Wang, reportedly a friend of Mr Xi's from their youth, led the charge -
becoming a feared enforcer for the Xi administration.

 

What does his promotion mean?

The end of term limits and the choice of such a prominent party member as Mr
Wang could mean a change in what the role represents, analysts say.

 

Mr Wang's experience negotiating with the US on economics is significant,
given US President Donald Trump's plans for tariffs.

 

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

What could China do in a US trade war?

Hua Po, an independent Chinese political commentator, told AFP news agency
his appointment may be to allow Mr Wang and Mr Xi to combat President Trump,
adding: "Maybe they'll be able to come up with a solution for this massive
brewing storm with America about imbalances and tariffs."

 

And his closeness to President Xi could mean he will make the position his
own.

 

Speaking to the New York Times, researcher Wu Qiang who was formerly at the
Tsinghua University in Beijing, said Mr Wang is "one of the most important
figures" in President Xi's administration.

 

"Wang Qishan will add substance to the role of vice-president," he said.

 

"The amendment of the constitution has raised the status of the presidency,
and the vice-presidency will also benefit from that."--BBC

 

 

 

Fixed-odds maximum bet 'should be cut to £30'

The maximum stake for fixed odds betting terminals (FOBT) should be cut to
£30 or less, the UK's Gambling Commission has recommended.

 

It comes after consultation on FOBTs for the Department for Digital,
Culture, Media and Sport (DCMS).

 

The DCMS wants "to reduce the risks that consumers, especially those that
are vulnerable, face from gambling".

 

It says the maximum stake on "slots games", which are like traditional fruit
machine games, should be £2.

 

Fixed-odds terminals were introduced in casinos and betting shops from 1999,
and offer computerised games including roulette and blackjack at the touch
of a button. Currently, people can bet up to £100 every 20 seconds on
electronic casino games.

 

The Gambling Commission's report said the £30 limit for casino type games
had been recommended, because any limit above this would have "a significant
effect on the potential for players to lose large amounts of money in a
short space of time".

 

The government now has to decide whether to accept the commission's advice
on the stake limit, or decide to impose a lower figure.

 

The government began to look at FOBT machines in October 2016, when it made
a "call for evidence" on the number and location of terminals and the
measures in place to protect players.

 

Gambling Commission chief executive Neil McArthur said: "We've put consumers
at the heart of our advice - advice which is based on the best available
evidence and is focused on reducing the risk of gambling-related harm.

 

"In our judgment, a stake cut for Fixed Odds Betting Terminals alone doesn't
go far enough to protect vulnerable people.

 

"That is why we have recommended a stake cut plus a comprehensive package of
other measures to protect consumers. We have proposed actions that will
tackle both the risk of harm and provide solutions that are sustainable in
the longer term."

 

These include working with the gambling industry and others on steps to make
limit-setting more effective - this could include ending sessions when
consumers reach time and money limits.

 

Another recommendation is a proposed ban on machines being able to allow
different categories of games to be played in a single session.

 

FOBT machines generated more than £1.8bn in tax revenue last year.--BBC

 

 

 

Tesla boss in line for mega-pay deal

Electric carmaker Tesla, facing pressure on a number of fronts, is asking
shareholders for a show of support for chief executive Elon Musk.

 

The firm has called a special meeting this month for investors to vote on a
10-year compensation plan for Mr Musk.

 

Under the plan, Mr Musk could receive stock awards worth an estimated $2.6bn
- among the largest in US history.

 

The grants would only be distributed if the firm, which has made consistent
losses, hits certain milestones.

 

Major holders of Tesla stock, including investment firms Baillie Gifford and
T Rowe Price, have said they intend to support the pay plan, providing a
vote of confidence.

 

But shareholder advisory groups have cautioned against the proposal, saying
it is too generous.

 

The vote comes as Tesla confronts several years of mounting questions about
its operations.

 

'Brand under fire'

Investors are impatient about delays in the production of Model 3 cars, a
new model that is supposed to target a more mass-market clientele.

 

US regulators have raised questions about the firm's financial disclosures,
while some shareholders have complained about the board's independence and
its 2016 decision to buy SolarCity, a money-losing solar power company
backed by Mr Musk and led by his cousin.

 

Outside the financial world, people have voiced concerns about the firm's
autopilot features and workers have spoken out about abrupt dismissals and a
discriminatory work environment.

 

Tesla has said the claims are without merit and its high public profile
makes it a target. Several of the shareholder lawsuits have been dismissed.

 

But financial analysts are sounding warnings that the firm is losing ground
against competitors. Share prices have sunk since June, though they remain
about 25% higher than a year ago.

 

Surveys suggest the public remains enthusiastic about Tesla, though the
issues may be having an effect.

 

A Harris Poll ranked the company's reputation third out of 100 American
firms. But recent analysis by Netbase, which tracks social media posts,
found Tesla compared poorly to other luxury brands.

 

"There's no question that the Tesla brand is a bit under fire," says Tim
Calkins, a marketing professor at Northwestern University's Kellogg School
of Management.

 

Belief in Tesla - and Mr Musk - has helped the firm to fend off naysayers so
far.

 

But Mr Calkins warns the steady drumbeat of negative press threatens to
erode that faith, just as the firm is trying to win over a wider audience.

 

"They've raised expectations of everybody really, and when you fall short of
expectations, people forgive you for a while, if you're a brand they like,"
Mr Calkins says.

 

"If you're Elon Musk, what you're counting on is that the future is so
compelling that people are going to give you time."

 

'Have to be impressed'

For years, Mr Musk has had a seemingly magical touch, defying doubts about
his endeavours.

 

These also include rocket company SpaceX and Neuralink, which is looking at
ways to meld human and computer intelligence.

 

As chief executive of Tesla since 2008, he has won billions from investors
and governments, leading the company as it has grown to employ almost 40,000
people.

 

The stock market values Tesla at about $55bn - more than Ford and General
Motors - even though Tesla made only about 105,000 cars last year, less than
2% of Ford's total.

 

Steve Westly, founder of the Westly Group, a venture fund, was an early
Tesla backer and sat on its board. He credits Tesla with nudging the auto
industry toward electric vehicles.

 

"By any standard, Elon Musk has done an extraordinary job," he says. "While
he may have missed the boat or been imperfect on some things, on balance you
just have to be impressed with what this guy has accomplished."

 

Elon Musk: The man who sent his sports car into space

'Normal metrics'

Others take a starkly different view, pointing to Tesla's consistent losses,
more than $10bn in debt and repeated failure to meet manufacturing
forecasts.

 

"To date, the company has not actually been very successful if you judge it
by any normal metrics," says Bradford Cornell, a professor of financial
economics at CalTech and president of SMBP LLC, a hedge fund, who believes
the stock is overpriced.

 

Tesla supporters say critics overlook investments the firm is making toward
its future. On a recent call with financial analysts, Mr Musk professed to
be "cautiously optimistic" that Tesla would start to turn a profit in 2018.

 

But concerns such as Mr Cornell's have made Tesla an attractive target for
short-sellers, who are wagering the stock will fall.

 

More bets are now levelled against Tesla than almost any other company in
the US - and investors added to their positions last year even as the stock
continued to rise, says Ihor Dusaniwsky, head of predictive analytics for S3
Partners, which tracks short positions.

 

"It's really a one-of-a-kind stock in that sense," he says.

 

Tesla pay plan

In an interview with Rolling Stone last year, Mr Musk described
short-sellers as "jerks who want us to die", blaming them for a campaign to
amplify negative rumours.

 

Criticism of the pay proposal has focused primarily on its cost, not the
firm's performance.

 

The plan conditions the first set of awards on the firm roughly doubling its
performance against metrics that include market capitalisation. For Mr Musk
to receive the full grant, the firm would have to become a roughly $650bn
company.

 

John Roe, head of analytics for Institutional Shareholder Services,
described the goals as "rigorous".

 

"They're trying to do the right thing with these new grants, or at least
establish the right message that Musk is going to be aligned with
shareholders," he says.

 

But he also points out Mr Musk - whose net worth Forbes estimates at more
than $20bn, much of it in Tesla stock - already has a lot riding on Tesla.
He owns about 22% of the company, which could rise closer to 30% under the
proposal.

 

Tesla has said the performance targets tie Mr Musk's interests to
shareholders, while offering an award "commensurate with the difficulty of
achieving" the goals.

 

Victor Li, executive vice president for governance advisory at Kingsdale
Advisors, says if the vote on pay goes Tesla's way, that will strengthen Mr
Musk's mandate.

 

"Investors - they are betting on him," he says.--BBC

 

 

 

Insurers warn of travel premium rise

Insurers have warned that the cost of new travel policies could soon rise if
the principles of a Brexit deal aren't hammered out next week.

 

Drivers going on holiday could need also need extra paperwork, the
Association of British Insurers said.

 

Next Thursday Prime Minister Theresa will try to win agreement on a Brexit
transition period.

 

The Department for Exiting the EU said it was "focused on getting a good
outcome" for the UK and the EU.

 

It's only two weeks until the annual policies insurers sell will need to
provide cover beyond Brexit day, the 29 March next year.

 

If there's a transition period, perhaps to the end of 2020, the process is
expected to carry on as before.

 

But if there's no agreement next week, insurers say they will have to fear
the worst.

 

They could start warning motor policyholders that they will need a Green
Card - an international document proving you have insurance - when they
drive their cars into the EU after Brexit.

 

And if travellers can't depend on their European Health Insurance Cover
(EHIC) cards, which entitle them to medical treatment across the EU, the
price of travel insurance will be affected.

 

Hassle on the horizon

Huw Evans, the director general of the Association of British Insurers,
said: "It's very important that the government reaches agreement next week
with our European partners."

 

"Travellers and motorists could easily be disrupted if we don't have an
agreement for what happens when we leave the EU in March 2019," he said.

 

It would mean extra costs and extra hassle. Of course insurers will make
sure that motorists and holidaymakers are covered and are protected in the
way they need to be.

 

But if you're a motorist it would mean that you may need to show green card
documentation at a border crossing.

 

And if you are a holidaymaker it means that you will have a to buy a travel
insurance policy that covers you for things that are currently covered by
the EHIC card, which will probably cost you more.

 

The government appears optimistic that the situation won't arise.

 

The Department for Exiting the EU said it was increasingly confident about a
deal with the EU and that the prospect of leaving without one had reduced
significantly.

 

Deal or no deal?

A UK government spokesperson said: "We are focused on getting a good outcome
- one that works for the people and businesses of the UK and EU."

 

After a last-minute deal struck in December, the spokesperson said the
government was "increasingly confident that we will secure a deal with the
EU and that the prospect of leaving negotiations with 'no deal' has reduced
significantly.

 

"We want our future relationship with the EU to be a deep and special
partnership, taking in both economic and security cooperation.

 

"We do not want or expect a no deal outcome," the spokesperson added.--BBC

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


NicozDiamond

finals and analysts briefing

7th Floor Auditorium, Insurance Centre, 30 Samora Machel Avenue

20/03/2018 12pm

 


Old Mutual Zim

analysts briefing

Stewart Room, Meikles

20/03/2018 2pm

 


Simbisa

EGM

Royal Harare Golf Club

21/03/2018 9am

 


First Mutual Properties

Financial Results Presentation

The Venue Avondale

21/03/2018 2pm

 


First Mutual Holdings

Financial Results Presentation

The Venue Avondale

21/03/2018 3pm

 


 

 

 

 

 


Zimplow

final dividend 0.13c per share record

 

23/03/2018 

 


TSL

AGM

28 Simon Mazorodze Road, Southerton

27/03/2018 12pm

 


Willdale

AGM

19.5km peg, Lomagundi Road, Mount Hampden

29/03/2018 11am

 


 

Good Friday

 

30/03/2018 

 


 

Easter Monday

 

02/04/2018

 


Zimbabwe

Independence Day

Zimbabwe

18/04/2018

 


 

Workers’ Day

 

01/05/2018

 


 

Africa Day

 

25/05/2018

 


Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

 


Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <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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