Major International Business Headlines Brief::: 22 March 2018

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Major International Business Headlines Brief::: 22 March 2018

 


 

 


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*  Zimbabwe expects higher tobacco output, could improve liquidity

*  Trump set to announce China sanctions after IP probe

*  Kenya Airways says 9-mth pretax loss at 5.97 bln shillings

*  Zuma's tax chief ousted ahead of South Africa ratings decision

*   Nigerian parliament aims to pass 2018 budget on April 24

*  Mauritius 3-year Treasury bond yield rises to 4.24 pct

*  Seychelles' economy growth seen above 5.0 percent in 2017-IMF

*  Algeria's trade deficit drops in Jan-Feb 2018-customs

*  South Africa mines minister to ready black ownership rules by May

*  Mozambique gives creditors debt restructuring options

*  South Africa's Q4 current account deficit widens as strong rand boosts imports

*  Technology giants face European 'digital tax' blow

*  Facebook's Zuckerberg 'sorry' over Cambridge Analytica 'breach'

*  Tesla boss Elon Musk's $2.6bn pay day

*  Fed announces US rate increase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Zimbabwe expects higher tobacco output, could improve liquidity

HARARE (Reuters) - Zimbabwe expects output of its second biggest export earner tobacco to rise 5.8 percent to 200 million kilogramme this year, an industry group said on Wednesday, as farmers started selling their crop at the country’s auctions.

 

The southern African nation is desperately short of dollars due to its strugling economy, although traditionally liquidity improves during the tobacco-selling season as cash is brought into the country.

 

 

Zimbabwe exports its tobacco mostly to China, South Africa and Belgium, earning the country $1.2 billion between May 2016 and December 2017 compared with $1.3 billion from gold, central bank data showed.

 

The Tobacco Industry and Marketing Board said tobacco production should increase from 189 million kg to 200 million kg this year.

 

Over the last five years, more companies have been financing farmers to produce tobacco, helping to boost production.

 

“Government appreciates the coming on board of the tobacco contracting companies where they financed 82 percent of the crop in the 2017/18 agricultural season,” Vice President Constantino Chiwenga told farmers at the start of the auction season.

 

Chiwenga said the government was extending the tobacco funding model to other crops like wheat and soybean, whose production has remained depressed because farmers lack money to buy seed, fertiliser and pesticides.

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Trump set to announce China sanctions after IP probe

The Trump administration plans to announce sanctions against China on Thursday after determining that the country is encouraging the theft and transfer of intellectual property from US businesses.

 

The White House said the actions come after years of talks about the issue that failed to produce change.

 

The actions are expected to include tariffs, as well as other measures.

 

The plans have stoked fears of a wider trade war.

 

Trump: Political heir to Abe Lincoln?

 

The White House is reported by US media to be considering between $30bn-$60bn in tariffs as well as measures that would restrict investment.

 

The US may also seek to bring complaints to the World Trade Organisation, trade officials said.

 

America's top trade negotiator, Robert Lighthizer, told members of Congress on Wednesday the US is looking to put "maximum pressure on China and minimum pressure on US consumers".

 

Mr Lighthizer said protecting intellectual property is critical to the US economy.

 

"It's an enormously important issue," Mr Lighthizer said at the House Ways and Means hearing. "We think it is perhaps the most important thing that will have been done in terms of rebalancing trade."

 

What is behind the tariffs?

A US trade official, who spoke to reporters as part of a briefing, said the US has evidence that China requires firms to create local partnerships to enter the Chinese market, as a way of pressuring them into technology transfer.

 

The US also found evidence that China steers investments in the US to strategic industries, and conducts and supports cyber attacks.

 

The findings come from a review of China's practices that Mr Trump ordered in August, called a 301 investigation.

 

In section 301 of the trade act, the government has given itself the power to unilaterally impose sanctions against countries which it decides are not trading fairly.

 

Mr Trump has repeatedly railed against the massive US trade deficit with China.

 

Does the move have wider support in the US?

There is growing concern in America that China is seeking technology that could be deployed for military purposes.

 

Congress is also weighing legislation that would boost the government's power to review foreign business deals, citing the threat posed by state-backed acquisition of US firms.

 

But some politicians and industries, including retailers, have expressed concern about possible retaliation.

 

 

"I'm all for targeting Chinese intellectual property violations, holding them accountable - but let's be targeted in what we want China to change," Erik Paulsen, a Republican who represents Minnesota, urged Mr Lighthizer on Wednesday.

 

"Let's not shoot ourselves in the foot."

 

Mr Lighthizer acknowledged the possibility of retaliation, noting that US agriculture is especially vulnerable. But he said that should not stop the US from taking action.

 

"I don't think it is a sufficient worry that therefore we're not going to stand up for intellectual property but we're trying to do everything in a measured and appropriate way," he said at a congressional hearing on Wednesday.

 

"If there is retaliation, then the United States is going to have to take action to stick up for our farmers."

 

What has China said?

China has said there would be no winner from any trade war.

 

On Tuesday, the last day of the annual sitting of the National People's Congress, China's Premier Le Keqiang said he hoped both sides could remain "calm".

 

He also said he hoped the US would ease restrictions on exports of high-tech goods to China.--BBC

 

 

Kenya Airways says 9-mth pretax loss at 5.97 bln shillings

NAIROBI (Reuters) - Kenya Airways reported on Wednesday nine-month pretax loss of 5.97 billion shillings ($59.03 million) and an after tax loss of 6.1 billion shillings, hurt by a prolonged election period in the country and rising fuel prices.

 

Nine-month operating profit stood at 1.3 billion shillings, acting Chief Financial Officer Hellen Mwariri said.

 

Kenya spent most of 2017 conducting elections, which in addition to effects of drought, hit economic growth.

 

The elections contributed to a 20 percent drop in domestic traffic, including in its East Africa markets, said Chief Executive Sebastian Mikosz.

 

The airline, which is changing its financial year to match the calendar year, said passenger numbers stood at 3.4 million in the nine months to end-December.

 

The airline completed a $2 billion debt restructuring in November as part of revival plans after a drop in Kenyan travel and high financing costs on new Boeing jets resulted in the country’s biggest ever corporate loss - 26 billion shillings - in its 2016 financial year.

 

Kenya Airways reported pretax loss for the full year to end March 2017 of 10.2 billion shillings, while after tax loss was 9.96 billion shillings. Operating profit was 897 million shillings.

 

($1 = 101.1000 Kenyan shillings)

 

 

 

Zuma's tax chief ousted ahead of South Africa ratings decision

JOHANNESBURG (Reuters) - Mark Kingon was appointed acting head of South Africa’s tax office on Tuesday, hours after President Cyril Ramaphosa suspended his predecessor and days before a Moody’s review that could see the country lose its last investment-grade credit rating.

 

The move was seen as a signal of intent to ratings agencies and investors that had lost faith in Africa’s most developed economy under former leader Jacob Zuma. It follows a cabinet reshuffle which sacked or demoted several allies of Zuma, who was forced to step down by the ruling ANC last month.

 

Ramaphosa suspended Zuma-appointed Tom Moyane late on Tuesday, saying he had failed as head of the South African Revenue Service (SARS) and had lost the confidence of taxpayers.

 

Kingon, SARS chief officer for business and individual taxes, was announced as acting commissioner on Tuesday.

 

 

Mindful that investors who finance its big budget and current account deficits have lost confidence in South Africa, Ramaphosa has begun to reform the economy and state-owned companies like power utility Eskom and South African Airways.

 

A test of whether his early changes have helped shift sentiment will come on Friday when credit rating agency Moody’s completes a review that could see it downgrade South Africa’s local and foreign debt to “junk” status.

 

“This (Moyane’s suspension) is a clear sign to Moody’s that strong steps are being taken to turn financial institutions around,” said Joon Chong, partner in Webber Wentzel’s Tax Practice. “We may avoid a downgrade by the skin of our teeth.”

 

Rating agencies Fitch and S&P both demoted South Africa from investment-grade last year as economic growth slowed and public finances deteriorated.

 

Moyane, who was appointed in 2014, had been criticised by SARS employees and members of the ruling African National Congress after the tax agency missed revenue collection targets and faced allegations of corruption and mismanagement.

 

In last month’s budget the Treasury said it faced a 48.2 billion rand ($4 billion) revenue gap in the current 2017/18 fiscal year, partly due to SARS missing its collection target.

 

Moyane was not available for comment on Tuesday. He has repeatedly defended his record and had the support of Zuma.

 

But Ramaphosa said he had lost faith in his leadership.

 

“The disrepute in which you have brought the SARS and the government as a whole and the risk to the national Revenue Fund are enormous,” Ramaphosa said in a March 19 letter informing Moyane of his suspension that was seen by Reuters.

 

 

Nigerian parliament aims to pass 2018 budget on April 24

ABUJA (Reuters) - Nigerian lawmakers aim to pass the country’s 2018 spending plan on April 24, House Speaker Yakubu Dogara said on Wednesday.

 

President Muhammadu Buhari presented a 2018 budget of 8.612 trillion naira, the country’s biggest ever, to lawmakers in November and was targeting Jan. 1, 2018 for its passage.

 

Dogara said the budget would be laid at plenary on April 19 and passed the following week.

 

 

Mauritius 3-year Treasury bond yield rises to 4.24 pct

PORT LOUIS (Reuters) - The weighted average yield on Mauritius’ 3-year Treasury bond rose to 4.24 percent at auction on Wednesday from 3.29 percent at the previous sale in February, the central bank said.

 

The Bank of Mauritius sold all the 1.6 billion rupees ($48.63 million) of debt that it had offered.

 

Bids totalled 4.950 billion rupees, with yields ranging from 4.08 percent to 4.32 percent. The bond has a coupon rate of 3.18 percent and is due on January 26, 2021.

 

($1 = 32.9000 Mauritius rupees)

 

 

Seychelles' economy growth seen above 5.0 percent in 2017-IMF

KIGALI (Reuters) - The Seychelles’ economy is estimated to have grown over 5.0 percent last year, up from a 4.5 percent growth in 2016, supported by buoyant tourism activity, strong output in the fishery industry and expanding credit to the private sector, the International Monetary Fund said.

 

“Macroeconomic performance continued to be strong in 2017. Economic growth is estimated to have exceeded 5.0 percent,” IMF mission chief Amadou Sy said in a statement issued on Tuesday.

 

It said inflation in the Indian Ocean country reached 3.5 percent by the end of 2017.

 

Inflation in the Seychelles rose to 4.88 percent year-on-year in February from 4.5 percent a month earlier.

 

IMF said Seychelles’ economy outlook for 2018 remained positive but added it was still vulnerable to external factors that could affect tourism.

 

 

Algeria's trade deficit drops in Jan-Feb 2018-customs

ALGIERS (Reuters) - Algeria’s trade deficit fell to $97 million in the first two months of 2018, versus $2.33 billion in the same period last year, data released by customs showed on Wednesday.

 

The decline of more than 50 percent is mainly due to a rise in energy earnings as oil prices have risen. Oil and gas exports were up 25 percent to $7.1 billion in January and February, in comparison with $5.67 billion in the same period last year, the customs data showed.

 

OPEC member Algeria relies heavily on oil and gas, which account for 60 percent of the budget and 95 percent of total export revenues.

 

The recent recovery of oil revenues has provided some relief for a government that saw its revenues badly hit by the crash of hydrocarbon prices after mid-2014.

 

Imports were down 10 percent to $7.2 billion, versus $8 billion in the same period last year.

 

 

South Africa mines minister to ready black ownership rules by May

PRETORIA (Reuters) - South Africa aims to finalise revised plans for black ownership in the mining industry by the end of May, Minister of Mineral Resources Gwede Mantashe said on Tuesday, promising to deliver “policy certainty” to an industry worried about new costs.

 

Mantashe acknowledged a “lack of consultation between the ministry and the partners in the past”, a message that was well received by companies in the sector where uncertainty about the Mining Charter has deterred investment for months.

 

A draft of the charter - part of a drive to address lingering racial disparities two decades after apartheid - would raise the target for black ownership to 30 percent from 26 percent and make companies pay 1 percent of turnover to an agency to help black communities.

 

Mantashe, chairman of the ruling African National Congress and a former head of the National Union of Mineworkers, met companies and unions a the weekend and said he aimed to re-establish trust.

 

“Uppermost in our minds is that we should ensure that there is policy certainty,” he told reporters in a briefing about the “robust and open” meeting.

 

The Chamber of Mines, which represents the companies, has suspended a court challenge to revisions to the charter drawn up by Mantashe’s predecessor, Mosebenzi Zwane, which it says were imposed without consultation.

 

The chamber says many of those rules are unaffordable for an industry that accounts for about 8 percent of gross domestic product but is grappling with depressed prices and rising costs.

 

Welcoming Mantashe’s approach, it said in a statement: “We are aligned with the Minister’s thinking that transformation, competitiveness and growth are and should be mutually reinforcing goals.”

 

 

Mozambique gives creditors debt restructuring options

LONDON (Reuters) - Mozambique on Tuesday presented creditors with three options for restructuring huge debts it is unable to repay until gas projects begin production forecast in late-2022, a finance ministry presentation showed.

 

The scenarios given to creditors include extending maturities on the outstanding defaulted debt to between 8 and 16 years and a haircut on interest and penalties owed, the presentation said.

 

Shortly after restructuring a Eurobond in 2016, Mozambique’s government admitted to $1.4 billion of previously undisclosed loans, prompting the International Monetary Fund and foreign donors to cut off support.

 

 

South Africa's Q4 current account deficit widens as strong rand boosts imports

PRETORIA (Reuters) - South Africa’s current account deficit widened more than expected to 2.9 percent of GDP in the fourth quarter due to a smaller trade surplus driven by a rally in the currency late last year, central bank said on Tuesday.

 

The rand has appreciated by about 20 percent against the dollar since mid-November, in the run-up of the election of Cyril Ramaphosa as leader of ruling African National Congress in December.

 

The bank said the stronger currency was among the main reasons for the faster increase in imports, although continued global demand for commodities helped soften the blow.

 

 

In its Quarterly Bulletin for Q4 2017, the bank said the nominal effective exchange rate of the rand increased 8.3 percent in the final quarter of 2017, the largest increase since early 2009.

 

The nominal effective exchange rate is a weighted average rate at which a country’s currency exchanges for a basket of multiple foreign currencies.

 

The value of imports was up 8.9 percent in the quarter and increased 7.1 percent in volume.

 

“Both export and import volumes increased but the deterioration in the current account from the third to the fourth quarter was mostly driven by volume increases in imports,” said senior economist central bank Piet Swart.

 

The trade surplus shrunk, falling to 74 billion rand from a revised 92 billion rand in the prior quarter, the Reserve Bank said, while foreign direct investment fell due the sale of a significant stake in local bank ABSA by British based Barclays.

 

FDI recorded an outflow of 13.5 billion rand in the last quarter of 2017 from an inflow of more than 16 billion rand in the quarter before that.

 

($1 = 12.0003 rand)

 

 

Technology giants face European 'digital tax' blow

Big technology firms face paying more tax under plans announced by the European Commission.

 

It said companies with significant online revenues should pay a 3% tax on turnover for various online services, bringing in an estimated €5bn (£4.4bn).

 

The proposal would affect firms such as Facebook and Google with global annual revenues above €750m and taxable EU revenue above €50m.

 

The move follows criticism that tech giants pay too little tax in Europe.

 

EU economics affairs commissioner Pierre Moscovici said the "current legal vacuum is creating a serious shortfall in the public revenue of our member states".

 

He stressed it was not a move against the US or "GAFA" - the acronym for Google, Apple, Facebook and Amazon.

 

According to the Commission, top digital firms pay an average tax rate of just 9.5% in the EU - far less than the 23.3% paid by traditional companies.

 

Its figures are disputed by the big tech firms, which have called the tax proposal "populist and flawed".

 

Countries including the UK and France have accused firms of routing some profits through low-tax EU member states such as Ireland and Luxembourg.

 

Big US tech companies have argued they are complying with national and international tax laws.

 

However, the Commission said it wanted to tax companies according to where their digital users are based.

 

It doesn't appear that Britain's journey towards the exit door of the European Union is causing too much consternation in Brussels over whether these new tech tax proposals will ever be implemented.

 

The EU commissioner behind today's proposals has told me "there is no blocking attitude from the UK".

 

Pierre Moscovici said that whilst Britain remained a member of the EU, he expected Philip Hammond to play a positive role in supporting the changes.

 

He also said that he believed the plans could be agreed by the end of the year - before Britain departs - and would be discussed tomorrow at the EU summit which will be attended by Theresa May.

 

Some will say Mr Moscovici's timetable is overly-ambitious, and that gaining agreement from all the EU member states will prove difficult.

 

His answer to that? That the political direction of travel is clear, voters want to see digital giants like Facebook and Google pay more tax.

 

And here is a thought through plan to do it.

 

 

The tax would only apply to certain online revenue streams, such as online advertising in search engines or social media, online trading, or the sale of user data.

 

The proposals require backing from the European Parliament and the 28 EU countries, but they are divided on the issue.

 

EU tax reforms need the backing of all member states to become law.

 

Ireland has warned that the proposals may not yield more tax, while some countries believe smaller companies should also face a bill.

 

The business practices of big tech firms are facing growing scrutiny in Europe.

 

Competition regulators have fined Apple and Amazon, while Google is appealing against a record €2.4bn fine for abusing its dominance to favour its own shopping services.

 

EU agencies are also set to tighten rules on data privacy, while Germany has introduced big fines for social media firms who fail to take down extreme content quickly enough.--BBC

 

 

Facebook's Zuckerberg 'sorry' over Cambridge Analytica 'breach'

Facebook founder Mark Zuckerberg has admitted that the social network "made mistakes" that led to millions of Facebook users having their data exploited by a political consultancy.

 

Cambridge Analytica is accused of improperly using the data on behalf of political clients.

 

In a statement, Mr Zuckerberg said a "breach of trust" had occurred.

 

In a later interview with CNN he said he was "really sorry", and pledged to take action against "rogue apps".

 

He added that he was "happy" to testify before Congress "if it's the right thing to do".

 

In his statement posted on Facebook, he promised to make it far harder for apps to "harvest" user information.

 

"We have a responsibility to protect your data, and if we can't then we don't deserve to serve you," Mr Zuckerberg said.

 

1.   Facebook 'lost sight' of data says insider

2.   Cambridge Analytica: The story so far

3.   The data firm's global reach

4.   How can you protect your Facebook data?

5.   What has Zuckerberg pledged to do?

To address current and past problems, Mr Zuckerberg said his company would:

 

*         investigate all Facebook apps that had access to large amounts of information before the platform was changed "to dramatically reduce data access" in 2014

*         conduct a "full forensic audit" of any app with suspicious activity

*         ban any developer that did not agree to a thorough audit

*         ban developers that had misused personally identifiable information, and "tell everyone affected by those apps"

In future, he said Facebook would:

 

*         restrict developers' data access "even further" to prevent other kinds of abuse

*         remove developers' access to a user's data if the user hadn't activated the developer's app for three months

*         reduce the data that users give an app when they sign in to just name, profile photo, and email address

*         require developers to obtain approval and also sign a contract in order to ask anyone for access to their posts or other private data

*         Mr Zuckerberg added: "While this specific issue involving Cambridge Analytica should no longer happen with new apps today, that doesn't change what happened in the past.

 

"We will learn from this experience to secure our platform further and make our community safer for everyone going forward."

 

 

'Legal defence'

Analysis by Dave Lee, BBC North America technology reporter, at Facebook's headquarters

 

I read one thing loud and clear from Mr Zuckerberg's initial statement: Facebook is not prepared to take the blame for what has happened.

 

Contrition has never been Mr Zuckerberg's strong point, and the statement, days in the making, was no different.

 

No apology to users, investors or staff over how this incident was allowed to happen by the data policies in place at the time.

 

No explanation as to why, after learning its data was being abused like this in 2014, it opted to give the companies a telling off instead of banning them outright.

 

No reasoning as to why Facebook failed to inform users their data may have been affected. Technically, it still hasn't.

 

Mr Zuckerberg's words were not an explanation, but a legal and political defence. This company knows it is heading into battle on multiple fronts.

 

What is the row about?

In 2014, Facebook invited users to find out their personality type via a quiz developed by Cambridge University researcher Dr Aleksandr Kogan called This is Your Digital Life.

 

About 270,000 users' data was collected, but the app also collected some public data from users' friends.

 

 

Facebook has since changed the amount of data developers can gather in this way, but a whistleblower, Christopher Wylie, says the data of about 50 million people was harvested for Cambridge Analytica before the rules on user consent were tightened up.

 

Mr Wylie claims the data was sold to Cambridge Analytica - which has no connection with Cambridge University - which then used it to psychologically profile people and deliver pro-Trump material to them.

 

 

The firm's chief executive, Alexander Nix - who was suspended on Tuesday - was secretly recorded in a Channel 4 investigation saying the London-based company ran Donald Trump's digital campaign during the 2016 US election.

 

"We did all the research, all the data, all the analytics, all the targeting, we ran all the digital campaign, the television campaign and our data informed all the strategy," he added.

 

Dr Kogan has said he was told by Cambridge Analytica everything they had done was legal, and that he was being made a "scapegoat" by the firm and Facebook.

 

How has Cambridge Analytica responded?

Cambridge Analytica denies any wrongdoing.

 

Facebook says users' data was obtained legitimately but Cambridge Analytica failed to delete it when told to do so.

 

For its part, Cambridge Analytica says it did delete the data when told to by Facebook.

 

It suspended Mr Nix following his comments which appeared to suggest tactics his company could use to discredit politicians online.

 

However, the firm said the report of comments secretly recorded by Channel 4 News had "grossly misrepresented" Mr Nix's comments.

 

What investigations are under way?

US senators have called on Mr Zuckerberg to testify before Congress about how his company will protect users, while consumer watchdog the US Federal Trade Commission has reportedly opened an investigation into Facebook.

 

The head of the European Parliament also said it would investigate to see if the data was misused.

 

Facebook boss summoned over data claims

India takes down Cambridge Analytica site

The UK's Information Commissioner Elizabeth Denham is attempting to obtain a warrant to search the offices of Cambridge Analytica.

 

Meanwhile, a UK parliamentary committee has called for Facebook boss Mark Zuckerberg to give evidence about its use of personal data.

 

There have also been calls for an investigation into the work Cambridge Analytica carried out during the 2013 election in Kenya.--BBC

 

 

 

Tesla boss Elon Musk's $2.6bn pay day

Tesla shareholders have approved a huge pay deal for its chief executive, Elon Musk, worth an estimated $2.6bn (£1.85bn).

 

It is believed to be the biggest share-based pay deal in US corporate history.

 

Mr Musk will only get the shares if Tesla hits certain targets related to metrics such as sales and share price.

 

The vote was seen as a key test of support for Mr Musk's leadership of the loss-making car maker, which is struggling to increase production.

 

Some big shareholders had said they would back the proposal, but prominent advisory groups argued it was too generous.

 

Mr Musk, who owns about a fifth of the electric car company, did not take part in the vote.

 

Tesla shares jumped about 3% after the vote was reported. About 73% of votes were vast in favour of the plan, excluding shares owned by Mr Musk and his brother.

 

The 10-year plan calls for shares to be distributed in tranches, with the first award contingent on the firm reaching $100bn in market capitalisation.

 

For Mr Musk to receive the full award, Tesla's value would have to jump to $650bn. The firm currently has a market capitalisation of about $55bn.--BBC

 

 

Fed announces US rate increase

The US central bank has said it will raise its benchmark interest rate citing a strengthened economic outlook.

 

The Federal Reserve said it had decided to raise the rate by 0.25% to a target range of 1.5% to 1.75%.

 

Policymakers also signalled they would increase rates twice more this year, while raising the forecast for rate hikes in 2019.

 

Federal Reserve Chair Jerome "Jay" Powell also sounded a warning about rising trade tensions.

 

The Trump administration recently announced steel and aluminium tariffs and is weighing sanctions against China, actions that have led to threats of retaliation.

 

Mr Powell said some Fed members are worried about the possibility of a trade war, referencing conversations between central bankers and business leaders.

 

"They're seeing it as a risk to the outlook," Mr Powell said at a press conference at the close of the Fed's two-day meeting in Washington.

 

What does the Fed expect?

Members of the Federal Open Markets Committee, which votes on rates, predicted the US economy will grow by 2.7% this year, faster than the 2.5% predicted in December.

 

Officials are also expecting slightly higher interest rates in 2019 and 2020 than they did in December, according to projections released after the meeting, which reflect the median of estimates by committee members.

 

"This is clearly a firming up of the future trajectory of policy tightening," said Brian Coulton, chief economist at Fitch Ratings.

 

The Fed has been raising rates slowly since 2015, moving the US away from the ultra-low levels put in place following the financial crisis.

 

The central bank is trying to balance a low unemployment rate with the potential for higher inflation.

 

Wednesday's rate increase was widely expected, but there are new faces on the committee, raising questions about whether policymakers will move more quickly in coming months.

 

Economic conditions have also shifted. The US economy grew at an annualised rate of more than 3% during some quarters last year, while the unemployment rate is hovering at 4.1% - the lowest since 2000.

 

*         US job growth surges in February

*         A new man takes over the Fed: What will he do?

*         'Zombie firms' at risk with expected fed rate hike

*         Inflation has continued to lag the Fed's 2% target rate, but analysts have said they expect wages and prices to increase this year.

 

Mr Powell said the Fed is "alert" to the possibility of inflation and expects inflation to rise in coming months, but is not expecting a sharp increase.

 

"There's no sense in the data that we're on the cusp of an acceleration in inflation," he said.

 

An increase in the Fed's benchmark federal funds rate typically leads to higher rates for consumers and businesses.

 

Savers benefit, but borrowing becomes more expensive, which can dampen activity in industries such as housing and car sales and raise costs for businesses that rely on debt.--BBC

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


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> 

 


 

 


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Facebook:      <http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

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