Major International Business Headlines Brief::: 20 March 2018

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Major International Business Headlines Brief::: 20 March 2018

 


 

 


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

 


 

 


*  Zimbabwe changes empowerment law limiting majority ownership to diamond
and platinum

*  Surprise Kenya rate cut puts lending rate cap in focus

*  Mozambique to meet wary creditors to discuss debt restructuring

*  Britain says $500 mln from alleged fraud can be returned to Angola

*  S.Africa's Tiger Brands flags loss at meat unit after listeria outbreak

*  Total renewables unit targets Africa's power-starved mining sector

*  South Africa's Advtech FY profit falls, schools unit underperforms

*  S.Africa's Netcare gets competition clearance for $107 mln Akeso takeover

*  Nigeria's central bank to hold interest rate meeting April 3-4 -spokesman

*  South African rand weaker, Moody's rating decision awaited

*  Weinstein Company files for bankruptcy

*  Facebook value drops by $37bn amid privacy backlash

*  Uber halts self-driving car tests after death

*  Barclays on the radar of activist investor

*  Prices could fall after Brexit 'if UK abolishes tariffs'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Zimbabwe changes empowerment law limiting majority ownership to diamond and
platinum

HARARE (Reuters) - Zimbabwe has changed its empowerment law to limit
majority ownership by state entities to only diamond and platinum mines and
not the entire mining sector as in previous legislation, according to a
government notice.

 

The Indigenisation and Econmic Empowerment Act was designed to increase
black Zimbabweans’ share of the economy but were opaque and open to abuse,
to the detriment of foreign investor confidence, a situation that new
President Emmerson promised to change.

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Surprise Kenya rate cut puts lending rate cap in focus

NAIROBI (Reuters) - Kenya’s central bank cut base interest rates for the
first time since September 2016 on Monday, fuelling talk that a government
cap on commercial lending rates introduced in the same month will be
modified or removed soon.

 

The 50 basis point cut in the benchmark lending rate to 9.5 percent took
much of the market by surprise, with seven of 11 analysts polled by Reuters
having forecast no change.

 

The bank’s monetary policy committee said the inflation outlook was benign
while economic growth remained short of its potential.

 

“There was scope for easing (the) monetary policy stance in order to support
economic activity,” it said.

 

 

With the International Monetary Fund putting pressure on Nairobi to ditch
the lending cap, set at 4 percentage points above base rates, Finance
Minister Henry Rotich said last week it was unsustainable and the government
was planning to change it.

 

Jibran Qureishi, East Africa economist at Stanbic Bank, said Thursday’s
decision looked like a prelude to its removal in coming months.

 

“That is the rationale in addition to the need to stimulate the economy at a
time when demand-driven inflation is very low,” said Qureishi, who predicted
the cut.

 

The government introduced the cap in September 2016, in a bid to lower loan
costs for individuals and businesses.

 

But the measure has had the effect of stifling the credit market as banks
became more cautious in their lending practices, as economists predicted.

 

Private sector credit grew just 2.1 percent in the year to February, well
below the central bank’s target rate of 12-15 percent.

 

The bank has said the cap would make the effectiveness of monetary policy
uncertain. It noted the risk of “perverse outcomes” after its previous
policy meeting in January, when it also said there was room for a more
monetary accommodation in the near term.

 

Kenya’s year-on-year inflation rate stood at 4.5 percent last month, well
within the government’s preferred band of 2.5-7.5 percent.

 

Razia Khan, chief economist for Africa at Standard Chartered in London, who
had also forecast a 50 basis point cut, said it was likely to spur the loan
market.

 

“Given expectations that loan rate caps will be amended, we expect to see a
moderately positive credit growth reaction in response,” she said.

 

 

Mozambique to meet wary creditors to discuss debt restructuring

LONDON (Reuters) - Mozambique will meet its commercial creditors on Tuesday
in London to present proposals on how to restructure its huge debts, but
Eurobond holders and analysts expressed little confidence on how much
progress can be made.

 

Shortly after restructuring a Eurobond in 2016, Mozambique’s government
admitted to $1.4 billion of previously undisclosed loans, much of which was
spent on building a state tuna-fishing company and enhancing maritime
security.

 

The disclosure prompted the International Monetary Fund (IMF) and foreign
donors to cut off support, triggering a currency collapse and leading to a
default.

 

But in the 17 months since Maputo said its debt was unsustainable and needed
restructuring, little progress seems to have been made and there has been
little contact between the government and its creditors.

 

“Put simply, it is not clear what the government is going to say to
creditors,” Stuart Culverhouse at Exotix Capital wrote in a note to clients.
“Without any discussions, it is not clear what Mozambique wants to present
and how it will be received.”

 

The IMF said in a report last month that Mozambique’s debt situation had
seen a “stark deterioration” due to a delayed fiscal response to a fall in
commodity prices, hidden loans and its currency nearly halving in value
since the end of 2014.

 

 

The country’s external public debt is seen rising to $13.3 billion this year
from $10 billion in 2016, according to the IMF. Its external public and
publicly guaranteed debt is expected to peak in 2023 at more than 370
percent of gross domestic product, while economic growth in the near-term
looks anaemic, the fund said.

 

Meanwhile, its overall external arrears have been building up rapidly,
hitting $709.7 million by the end of 2017, more than 80 percent of which is
owed to commercial creditors. But Mozambique is also in arrears to the
governments of Brazil, Libya, Iraq, Angola, Bulgaria and Poland.

 

While Maputo has made some inroads on reforms, such as abolishing fuel and
wheat subsidies, the outlook remains challenging, it said.

 

Eurobond holders reading the latest IMF reports, which include government
responses, were concerned about the differences between the two sides’
outlooks. In particular, Maputo said it envisages a slower path to fiscal
consolidation than suggested by the fund.

 

“It is rare for any country to hit all the targets that the IMF sets out
anyway, but they need to be seen to be trying,” said one bondholder who
declined to be named. “The response isn’t exactly encouraging.”

 

However, the discovery nearly a decade ago of substantial offshore gas
reserves has spurred hopes that one of the world’s poorest nations could
become a major exporter of liquefied natural gas (LNG)- so far the only
likely long-term solution to its deep financial problems.

 

“The big bet with Mozambique is do you believe the LNG plants will start on
time?,” said Greg Smith, fixed income strategist at Renaissance Capital. He
said delays to the projects, which are expected to become operational around
2023, could make investors think very differently.

 

Mozambique is not the only country in trouble in Africa. In 2017, both Congo
Republic and Chad defaulted or tried to renegotiate their debt, while Angola
announced it wanted to extend maturities in 2018.

 

Tuesday’s meeting at law firm White & Case LLP will see finance minister
Adriano Maleiane and restructuring adviser Michele Lamarche from Lazard
present key elements of the restructuring proposals and update commercial
creditors on fiscal and macroeconomic developments.

 

Among Mozambique’s commercial creditors are those holding a 2023 Eurobond
that has $727 million outstanding, but also those holding hidden loans: A
$535 million facility arranged by Russian lender VTB to state-firm
Mozambique Asset Management (MAM) and a $622 million loan arranged by VTB
and Credit Suisse for maritime security projects run by security firm
Proindicus, owned by the defence and interior ministries and the state
security service.

 

The bondholders have so far dug in their heels. The Global Group of
Mozambique Bondholders (GGBM) has said that it already accepted a debt swap
in 2016 and that other lenders should be first in line to take any more
hits.

 

“The GGMB and bondholders who are supporting it continue to hold over 80
percent of the bonds and accordingly any resolution of the Eurobonds will
need to reflect our position,” said the group’s legal adviser, Thomas Laryea
at Cooke Robotham LLC.

 

 

 

Britain says $500 mln from alleged fraud can be returned to Angola

LUANDA (Reuters) - Britain’s National Crime Agency said on Monday $500
million frozen in the UK as part of an ongoing investigation into a
potential fraud against Angola’s central bank can be returned to the
southern African country.

 

“The necessary authority has now been provided for the monies to be returned
to the Angolan Authorities,” an emailed response to questions said.

 

 

S.Africa's Tiger Brands flags loss at meat unit after listeria outbreak

JOHANNESBURG (Reuters) - South Africa’s Tiger Brands said on Monday it
expected its meat products unit to record a monthly loss of up to 33 million
rand ($3 million) after it suspended operations at four sites over a
listeria outbreak that has killed 180 people in 14 months.

 

Health authorities ordered a recall of processed meat known as polony made
by Tiger Brands and RCL Foods two weeks ago in response to the outbreak, the
worst ever globally with nearly 950 reported cases.

 

Tiger Brands, the country’s biggest food maker, said in a statement the
potential losses before interest and tax, were estimated at 28-33 million
rand for March.

 

In addition, the food producer said it was taking a 337-377 million rand
pre-tax hit due to the costs of a product recall and suspension of
production at its Polokwane, Germiston, Pretoria and Clayville sites, which
produce polony, and other cold meats.

 

Tiger Brands also said it has received notice of two class action suits
against the firm, with the total amount claimed against estimated at 425
million rand.

 

A human rights lawyer is planning a class action lawsuit against Tiger
Brands on behalf of the families of people who died and those affected by
the listeria outbreak.

 

The company said independent laboratory tests corroborated the health
ministry’s findings of the presence of the listeria strain LST6 at its
Polokwane facility and on the outer casing of two samples.

 

“Whether this presence of LST6 can be said to have caused any illness or
death remains unclear at present and testing in that regard is an ongoing
process likely to take time,” said the company.

 

Shares in Tiger Brand were down 0.82 percent to 353.41 rand at 0825 GMT.

 

($1 = 12.0264 rand)

 

 

Total renewables unit targets Africa's power-starved mining sector

ABIDJAN (Reuters) - Total’s renewable energy unit said on Monday it had
opened the world’s largest solar-thermal hybrid plant in Burkina Faso, the
first of what it hopes will be many projects supplying the African mining
industry’s growing need for power.

 

Total Eren and Africa-focused independent power producer AEMP inaugurated
Essakane Solar over the weekend, adding 15 megawatts (MW) of solar capacity
to an existing 57-MW heavy fuel oil power plant at Toronto-listed IAMGOLD’s
Essakane mine.

 

Christophe Fleurence, Total Eren’s vice-president for business development
in Africa, told Reuters the plan was to replicate this with other mining
projects.

 

“It’s gathering pace in terms of interest in all the discussions we’ve had
with our contacts in the mining industry,” Fleurence said. He declined to
give details of potential future deals.

 

 

Mining companies operating in remote areas have long relied on thermal power
plants, making their operations carbon-intensive and their costs vulnerable
to fluctuations in world oil prices.

 

As the price of photovoltaic panels has dropped in recent years, several
mining operations have added solar capacity to help cut power costs.
However, most of those projects have been relatively small.

 

The Essakane plant, made up of nearly 130,000 solar panels, is expected to
decrease the mine’s fuel consumption by some 6 million litres per year and
reduce CO2 emissions by around 18,500 tonnes per year.

 

The gold mine will buy the entirety of the plant’s production via a 15-year
power purchasing agreement signed with a special-purpose company in which
Total Eren owns a 90 percent stake. AEMP, Total Eren’s strategic partner for
its industrial and mining business in Africa, holds the remaining 10
percent.

 

“We do see this as likely to be adopted more and more going forward,” AEMP
co-founder Richard Duffy said. “We talk to a number of mining companies. We
have various projects in the pipeline - some of them not dissimilar to
Essakane.”

 

He said future projects were not at a stage where he could provide further
details.

 

Bruised by pressure on oil prices in recent years and in search of new
long-term revenue sources, France’s Total has intensified its push into
renewable energy.

 

It paid 237.5 million euros ($292 million) in September to acquire a 23
percent stake in solar and wind energy producer EREN RE, changing its name
to Total Eren. It has a five-year option to acquire full control of the
business.

 

($1 = 0.8128 euros)

 

 

South Africa's Advtech FY profit falls, schools unit underperforms

JOHANNESBURG(Reuters) - South African private education group AdvTech
reported a 3 percent fall in earnings as a result of a lower student intake
and a financial hit from an accounting fraud uncovered last year.

 

Diluted headline earnings per share — the primary measure of profit in South
Africa that strips out certain one-off items — fell to 69 cents in the year
to end December from 71 cents a year earlier.

 

The company, which also runs colleges and recruitment agencies, took a 35.5
million rand ($3 million) hit from a three-year long fraudulent
overstatement of sales, understatement of costs and theft of cash.

 

The fraud claimed the head of the company’s finance manager in its schools
unit, the biggest contributor to the company’s annual sales.

 

The division, which operates high-end schools such as Crawford and Trinity
House, also experienced a lower growth in student numbers as South Africans
battling high personal debt levels and stagnant economic growth opted for
cheaper schools.

 

Enrolments at the company’s schools edged up 3 percent for this year,
lagging far behind its budget-friendly rival Curro Holdings, which recorded
a 14 percent increase.

 

However, AdvTech’s tertiary and recruitment divisions showed strong growth
thanks to cross-border expansion that included investments in schools in
Botswana and Zambia. It expects to open the first Crawford International
School in Kenya this year.

 

AdvTech said its recruitment unit benefited from the success of Africa HR
Solutions, its unit based in Mauritius with networks across Africa, which
countered slow job growth at home.

 

Shares in AdvTech eased 0.25 percent to 15.68 rand by 1318 GMT, as the
broader JSE All-share index inched 0.5 percent higher. Curro’s shares were
trading lower at 0.94 percent to 31.76 rand.

 

($1 = 12.0785 rand)

 

 

S.Africa's Netcare gets competition clearance for $107 mln Akeso takeover

JOHANNESBURG (Reuters) - South Africa’s competition authority has approved
private hospital firm Netcare’s acquisition of Akeso Clinics after the
company agreed to sell two hospitals and maintain a range of pricing levels,
it said on Monday.

 

Netcare, South Africa’s third-largest private hospital chain which also runs
Britain’s largest private hospital network, announced in 2016 the 1.3
billion rand ($108 million) acquisition of Akeso, a chain of psychiatric
health facilities.

 

The Competition Commission had initially recommended that the takeover be
blocked as it was likely to cause a substantial lessening of competition.

 

But the Competition Tribunal, which makes final rulings on the basis of
recommendations from the Commission, said on Monday that Netcare had agreed
to sell its Rand and Bell Street hospitals, both of which have psychiatric
beds, and would maintain a range of prices at Akeso clinics.

 

Netcare said in a statement: “Following numerous constructive engagements, a
joint proposal by the merging parties and the Competition Commission was
made to the Tribunal that the transaction be approved subject to certain
conditions.”

 

The deal was then conditionally approved by the Tribunal.

 

Akeso has 12 dedicated mental healthcare facilities, comprising 811 beds and
located in various parts of South Africa, including Cape Town, George,
Johannesburg, Pretoria, Nelspruit, Umhlanga and Pietermaritzburg. ($1 =
12.0562 rand)

 

 

Nigeria's central bank to hold interest rate meeting April 3-4 -spokesman

ABUJA (Reuters) - Nigeria’s central bank plans to hold its next interest
rate meeting April 3-4, a spokesman said on Monday, contingent on the upper
house of parliament confirming the president’s nominees for the monetary
policy committee (MPC).

 

“The new dates for the MPC are April 3 and 4,” the spokesman told Reuters by
phone. “We are hoping that between now and then the members of the committee
would have been confirmed by the Senate.”

 

A political spat over nominations for the MPC meant Nigeria’s Senate had not
approved President Muhammadu Buhari’s candidates, leaving the committee
unable to form a quorum to set interest rates. The Senate will consider a
report into the nominations this week and could approve them, paving the way
for the first rate-setting meeting this year.

 

 

South African rand weaker, Moody's rating decision awaited

JOHANNESBURG (Reuters) - South Africa’s rand weakened against the dollar
early on Monday as caution gripped investors ahead of a Moody’s credit
rating review announcement and the U.S. Federal Reserve’s interest rates
decision due later in the week.

 

At 0645 GMT, the rand traded at 12.0375 per dollar, 0.44 percent weaker than
its New York close on Friday.

 

 

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 on
Friday.

 

Globally, the U.S. Federal Reserve is expected to hike interest rates on
Wednesday and perhaps signal that as many as three more lie in store for the
rest of the year. [MKTS/GLOB]

 

“With a mid-week public holiday locally, as well as FOMC on Wednesday and
the Moody’s announcement on Friday the markets are unlikely to display much
enthusiasm in their positioning and liquidity is likely to be tested
throughout,” Nedbank analysts wrote in a note.

 

Local focus will also be on February consumer prices inflation data and
fourth-quarter 2017 current account numbers due on Tuesday.

 

In fixed income, the yield for the benchmark government bond due in 2026 was
up 2.5 basis points at 8.17 percent.

 

 

Weinstein Company files for bankruptcy

Harvey Weinstein's former company has filed for bankruptcy, months after the
Oscar-winning producer was accused of multiple sexual assaults.

 

The move by the Weinstein Company is intended to facilitate a buy-out offer
from a private equity firm.

 

The film and TV studio also said it was releasing any victims of Mr
Weinstein's alleged misconduct from non-disclosure deals stopping them from
speaking out.

 

Mr Weinstein, 66, insists sexual relations he had were consensual.

 

He was fired as chairman of the Weinstein Company last October when the
allegations were first reported.

 

Once a powerhouse of the entertainment industry, the company will be known
as the first high-profile firm that went into bankruptcy as a direct result
of workplace sexual misconduct, the BBC's Nick Bryant in New York reports.

 

Who has accused him of what?

How the scandal unfolded

Game of Thrones star accuses Weinstein

What did the Weinstein Company say?

On Monday, the firm filed for Chapter 11 bankruptcy - a move permitting its
reorganisation.

 

The Weinstein Company - which was co-founded by Harvey Weinstein and his
brother Bob in 2005 - also announced a "stalking-horse" agreement with
Lantern Capital Partners private equity firm.

 

The deal means that the private equity firm would buy assets if this is
approved by a bankruptcy court.

 

"While we had hoped to reach a sale out of court, the board is pleased to
have a plan for maximising the value of its assets, preserving as many jobs
as possible and pursuing justice for any victims," the Weinstein Company
chairman Bob Weinstein said in a statement.

 

The Weinstein Company, which was behind films including The King's Speech
and The Artist, has been under intense pressure over the sexual assault
allegations against co-founder Harvey Weinstein.

 

What about non-disclosure agreements?

In a statement, the company said: "Since October, it's been reported that
Harvey Weinstein used non-disclosure agreements as a secret weapon to
silence his accusers," the company said in a statement.

 

"Effective immediately, those 'agreements' end. No-one should be afraid to
speak out or coerced to stay quiet."

 

The move was heralded by New York's Attorney General Eric Schneiderman as a
watershed moment, one that would finally enable voices that for too long
have been muzzled to be heard.

 

Although it is not yet clear how many people can now speak out.

 

Mr Weinstein has been accused of rape, sexual assault and harassment, but
has "unequivocally denied" any allegations of non-consensual
relationships.--BBC

 

 

Facebook value drops by $37bn amid privacy backlash

Facebook's shares have fallen sharply, wiping $37bn off the firm's value, as
it faces questions from US and UK politicians about its privacy rules.

 

The social network is under fire after reports on how Cambridge Analytica,
which some believe helped Donald Trump win the US election, acquired and
used Facebook's customer information.

 

Theresa May's spokesman called the allegations "very concerning".

 

The UK data protection body is seeking a warrant to search the firm's
offices.

 

Information Commissioner Elizabeth Denham says it will be used to look at
the databases and servers used by British data analytics firm Cambridge
Analytica.

 

Facebook shares ended trading 6.7% lower at $172.56, wiping almost $37bn off
the social network's market value.

 

The company is accused of failing to properly inform users that their
profile information may have been obtained and kept by Cambridge Analytica,
a political consulting firm.

 

"The lid is being opened on the black box of Facebook's data practices, and
the picture is not pretty," said Frank Pasquale, a University of Maryland
law professor.

 

*         Warrant sought for Cambridge Analytica

*         Zuckerberg pressed to face breach concerns

*         Facebook data sharing - time to act?

*         Firm suspended

*         On Friday, Facebook suspended the consulting firm, saying it had
acquired data from a researcher who violated the firm's policies.

 

Cambridge Analytica "strongly denies" the allegations levelled against it.

 

Asked about the reports, the prime minister's spokesman said: "The
allegations are clearly very concerning.

 

"It is essential that people can have confidence that their personal data
will be protected and used in an appropriate way."

 

US senators Amy Klobuchar, a Democrat, and John Kennedy, a Republican, have
also called for a hearing about data security and said they want to question
Facebook chief executive Mark Zuckerberg, and the heads of other tech
companies.

 

"While Facebook has pledged to enforce its policies to protect people's
information, questions remain as to whether those policies are sufficient
and whether Congress should take action to protect people's private
information," they wrote in the letter.

 

"The lack of oversight on how data is stored and how political
advertisements are sold raises concerns about the integrity of American
elections as well as privacy rights."

 

Alexander Nix, chief executive of Cambridge Analytica, was questioned by a
Parliamentary committee last month about using data to target messages.--BBC

 

 

Uber halts self-driving car tests after death

Uber said it is suspending self-driving car tests in all North American
cities after a fatal accident.

 

A 49-year-old woman was hit by a car and killed as she crossed the street in
Tempe, Arizona.

 

While self-driving cars have been involved in multiple accidents, it is
thought to be the first time an autonomous car has been involved in a fatal
collision.

 

Uber chief Dara Khosrowshahi said the death was "incredibly sad news".

 

Police said the accident happened Sunday night while the car was in
autonomous mode. A human monitor was also behind the wheel.

 

Police said the woman, Elaine Herzberg, had not been using a pedestrian
crossing. She was taken to a local hospital, where she died.

 

The US National Highway Traffic Safety Administration and the National
Transportation Safety Board said they were sending teams to Tempe.

 

'Wake up call'

Companies including Ford, General Motors, Tesla and Waymo are investing
heavily in research to develop self-driving cars, which are often
characterised as the future of the industry and hailed as a way to reduce
traffic accidents.

 

Driverless cars on UK roads by 2021 - really?

UK plans 200-mile 'country roads' driverless trial

Many states across America have welcomed the tests in the hope of keeping
themselves at the forefront of new technology.

 

However, there have been warnings that the technology is being deployed
before it is ready.

 

Anthony Foxx, who served as US Secretary of Transportation under former
President Barack Obama, called the accident a "wake up call to the entire
[autonomous vehicle] industry and government to put a high priority on
safety."

 

More than a dozen states in the US allow autonomous vehicles on the roads to
some degree. Officials typically require a person to be on hand either in
the car or remotely in case something goes wrong, according to the Center
for Automotive Research.

 

The US is working on national safety guidelines for such vehicles.

 

Consumer Watchdog, a lobby group that has warned of the risks of autonomous
cars, on Monday called for a moratorium of such vehicles on public roads,
describing the accident as a "tragedy we have been fighting years to
prevent".

 

"We hope our calls for real regulation of driverless cars will be taken
seriously going forward by Silicon Valley and the Trump Administration," the
group wrote on Twitter.

 

Uber started testing driverless cars in Pittsburgh in 2016. The ride-hailing
firm has also been testing driverless cars in San Francisco, Pittsburgh,
Toronto and the Phoenix area, which includes Tempe.

 

The death comes a year after Uber took its self-driving cars off the road
following an accident that left a Volvo SUV on its side in Arizona. The
programme was later reinstated.

 

Self-driving shuttle bus in crash on first day

Are driverless pods the future for world cities?

Carla Bailo, president and chief executive of the Center for Automotive
Research, said more information about how the crash occurred is necessary
before officials can say what went wrong and how the self-driving system
should be improved.

 

She also said the fatality should be considered in the context of all
accidents.

 

More than 37,000 people, including almost 6,000 pedestrians, died in traffic
accidents in the US in 2016, according to the US Department of
Transportation.

 

"We need to be fair and look at all the data," she said. "But I don't think
anybody is taking this lightly. By far safety is the first concern.

 

Tempe Mayor Mark Mitchell said he supports autonomous car tests because of
the technology's potential. He also praised Uber's decision to suspend the
programme as "responsible".

 

"Our city leadership and Tempe Police will pursue any and all answers to
what happened in order to ensure safety moving forward," he said.--BBC

 

 

Barclays on the radar of activist investor

"Activist shareholder" are two words almost guaranteed to make chief
executives choke on their morning coffee.

 

It usually means that someone with a lot of money thinks the CEO is not
doing a very good job of running the company and maximising its value.

 

The news that activist investor Edward Bramson has taken a 5% share in
Barclays had an instant effect, pushing the share price sharply higher as
investors reflected on his track record of increasing the value of companies
by muscling his way onto the board, shaking up the management, returning
cash to shareholders by selling off bits of the acquired business and
improving what's left.

 

More from Simon Jack

 

The question is just how "activist" does Mr Bramson intends to be. According
to Barclays insiders the early indications are - not very.

 

They point to Mr Bramson's previous investment in buyout group 3i, in which
he played a very passive role and for now portray his investment as a vote
of confidence in a company that could be about to experience a couple of
positive catalytic moments.

 

First, settling with the Department of Justice over Barclays' role in
selling risky mortgages. The inevitable - but hard to estimate - fine has
been hanging over the company as a known unknown for many years.

 

The second is the future of the CEO, Jes Staley, who has been under
investigation by the financial watchdog for his attempts to unmask an
anonymous whistleblower. Both these issues could be resolved in the next few
weeks. That could give Barclays shares a boost if resolved positively as far
as shareholders are concerned - namely a reasonably proportionate fine and
Mr Staley surviving.

 

Mr Staley has already taken a pretty sharp axe to Barclays - exiting 20
countries including the whole of Africa where it had operated, sometimes
controversially, for a century.

 

But one task that remains outstanding is separating the very profitable
Barclays retail bank from its underperforming investment bank. If Mr Bramson
agitated for that to happen, he would be on a direct collision course with
Mr Staley - and then sparks could start to fly.--BBC

 

 

 

Prices could fall after Brexit 'if UK abolishes tariffs'

Consumers could see prices fall by up to 1.2% if Britain were to abolish all
tariffs once it has left the European Union, a report says.

 

But the study by the Institute for Fiscal Studies warns that any gains would
be small and were based on "optimistic" assumptions.

 

It also said that consumers had already seen prices rise by 2% since the
referendum due to the weaker pound.

 

Costs linked to new EU trade barriers could also hit consumers, it said.

 

Those increased costs would "offset" any "rather limited" gains from
becoming tariff free in the future, the report from the think tank says.

 

"We estimate that complete abolition of all tariffs would reduce prices
faced by households by about 0.7-1.2%," the report says.

 

"This could have additional positive economic benefits in the long run but
could also be very damaging for some UK industries in the short run."

 

Abandoning tariffs

Tariffs - taxes on imports - are often used to protect parts of a country's
economy such as farming and car manufacturing.

 

Abandoning tariffs would mean greater competition for those sectors from
abroad which could mean job losses, for example.

 

Following that period, many economists argue that increased competition
generally lowers prices for consumers.

 

The IFS suggests some of the short-term economic damage could be alleviated
by only reducing tariffs on products Britain does not produce in very high
quantities but at present do face high tariffs on entering the EU's customs
union, such as olives and oranges.

 

"This would result in much smaller gains, reducing the total cost of the
basket of goods purchased by the typical household by less than 0.4%," the
IFS said.

 

"This compares with the estimated 2% increase in prices that followed the
depreciation in sterling in the wake of the referendum result.

 

"This suggests that the scale of 'quick wins' from running an independent
trade policy is relatively small."

 

'Small effect'

The report says that average tariffs applied to UK imports as part of the
EU's customs union are around 2.8%.

 

It also says that of every £100 spent by UK households, only £26 is
affected, directly or indirectly, by the import prices of goods on which
tariffs are charged.

 

Paul Johnson, the director of the IFS, told the BBC: "If we leave the
customs union, we can come to our own trade deals with other countries, we
can reduce tariffs.

 

"But even if we reduce that as much as possible, the effect on prices will
be really quite small relative to what is still a big cost of leaving the
customs union because it would make trade with the rest of Europe so much
more expensive."--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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344 1674

 


 

 

 

 

 

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Bulls n Bears 

 

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