Major International Business Headlines Brief::: 23 March 2018

[Bulls n Bears]

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 23 March 2018

 


 

 


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

 


 

 


*  Zimbabwe hopes to transform mining sector with $4.2 bln platinum deal

*  Naspers raises $9.8 bln from Tencent stake sale

*  Tencent loses $24 bln in market cap after Naspers' selldown

*  Ghana sells 1.57 bln cedis ($356.3 mln) worth of 3-yr bonds at 16.5 pct

*  South African rand slightly firms ahead of Moody's review decision

*  Gabon to revise hydrocarbons law to attract investment: oil ministry

*  Mauritius trade deficit narrows 9.3 pct yr/yr in January

*  S.Africa's retail sales rise slower in January as Black Friday effect
wanes

*  South Africa's Transnet signs new manganese deal with South32

*  First Quantum hopes to resolve mammoth $8 bln Zambian tax bill

*  Markets edgy on China US trade war fears

*  Next admits toughest trading period 'for 25 years'

*  EU warns US on data control flaws

*  EU and six other countries exempted from US metals tariffs

*  Citigroup imposes restrictions on clients who sell guns

*  Toys R Us founder Charles Lazarus dies at 94 as his company folds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Zimbabwe hopes to transform mining sector with $4.2 bln platinum deal

HARARE (Reuters) - A Cypriot investor signed a $4.2 billion deal on Thursday
to develop a platinum mine and refinery in Zimbabwe, an investment that
President Emmerson Mnangagwa said showed the country was “open for
business”.

 

Signing the agreement with Cyprus-based Karo Resources, Mines Minister
Winston Chitando said work would start in July, with the first output of
platinum group metals expected in 2020, aiming to reach 1.4 million ounces
annually within three years.

 

It was unclear, however, where all the funding would come from and analysts
said the project start date of July looked very ambitious.

 

Located in the Mhondoro-Ngezi platinum belt, west of Harare, where Impala
Platinum Holdings has operations, the project will include a coal mine and
power station to produce electricity for the smelter, and should employ
15,000 people when fully implemented, Karo head Loucas Pouroulis said.

 

Keen to revive the mining sector after years of reticence by foreign
investors during Robert Mugabe’s rule, President Mnangagwa said the deal
showed things had changed since his ascendancy after Mugabe’s ousting in
November.

 

“Zimbabwe is open for business and whoever stands in the way, hurting
business in this country, will fall. It is not business as usual anymore,
things have to change,” Mnangagwa said at the signing ceremony.

 

The project was first mooted six years ago but had been held back by
government red tape and “other unnamed vested interests, which are corrupt
interests,” he said.

 

Mines Minister Chitando added: “This is the largest investment structure in
the country’s mining industry in Zimbabwe. The landscape of Zimbabwe’s
mining industry will never be the same.”

 

Zimbabwe’s government did not give details of the source of funding for such
a big investment.

 

Industry sources, who asked not to be named, said there was no obligation to
provide any cash until firmer plans for the development were in place.

 

Cyprus-born Pouroulis spent his early career with industry giant Anglo
American in South Africa, branching out on his own to establish more niche
operators such as Petra Diamonds, Eland Platinum and Tharisa Minerals,
according to his profile on Tharisa’s website.

 

As well as heading Karo, Pouroulis is chairman and founder of Tharisa, in
which his family has a 45 percent stake.

 

Tharisa, which has chrome and platinum operations in South Africa’s
Bushveld, has made clear its interest in the potential of Zimbabwe, which
holds the world’s second-largest platinum deposits after neighbouring South
Africa.

 

The company, however, has a market capitalisation of only 5.5 billion rand
($464 million), although it is well regarded by many city analysts and its
share price has rallied 15 percent this year.

 

HSBC initiated covered of the stock on Thursday, rating it a buy. It
predicted it would have a net cash position of $185 million by the end of
2022 and said platinum prices should benefit from continued supply
curtailment in South Africa because of regulatory and funding uncertainty.

 

Foreign investment stalled in Zimbabwe during the later years of Mugabe’s
reign.

 

Analysts say the outlook is still uncertain, but interest is strong in a
country that has rich, underexplored resources.

 

An investment conference on Zimbabwe in London last week was heavily
oversubscribed.

 

On Monday, Mnangagwa’s government amended the Mugabe-era Indigenisation and
Economic Empowerment Act, which aimed to increase black Zimbabweans’
ownership of mines by preventing foreign entities holding majority stakes.

 

The revised law removed that stipulation for most types of mining, but not
diamond and platinum mines.

 

Chitando said Karo Resources was expected to comply with the empowerment law
by giving up majority ownership in the project. He did not elaborate.

 

($1 = 11.8491 rand)

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Naspers raises $9.8 bln from Tencent stake sale

JOHANNESBURG (Reuters) - South Africa’s Naspers has raised $9.8 billion from
the sale of a 2 percent stake in Chinese investment Tencent to strengthen
its balance sheet and fund growth in its e-commerce businesses, it said on
Friday.

 

Naspers said on Thursday it had no plans to reduce its holding further for
the next three years, disappointing some investors who had called for it to
spin off its 33 percent stake in China’s biggest internet firm to close the
widening gap between its own market value and the investment.

 

Shares in Naspers were down 4.45 percent at 3,153 rand at the market open,
while Tencent’s stock were down 4.51 percent, wiping $24 billion off its
market value.

 

Naspers said it sold 190 million shares in Tencent via an accelerated
bookbuilding process, reducing its holdings to 31.2 percent, to strengthen
its finances and invest over time in its classifieds, online food delivery
and fintech businesses globally.

 

The sale was priced at HK$405 per share, a discount of 7.8 percent to
Tencent’s closing price on Thursday.

 

 

 

Tencent loses $24 bln in market cap after Naspers' selldown

HONG KONG (Reuters) - China’s Tencent Holdings Ltd saw its shares down 4.51
percent at the midday trading break on Friday after the internet firm’s
largest shareholder, Naspers Ltd, said it would lower its stake for the
first time in 17 years.

 

The Hong Kong-listed stock opened 7.8 percent lower at HK$405, its lowest
opening price since Feb. 9, before regaining ground to HK$419.6 by noon. The
benchmark Hang Seng Index was down 2.81 percent.

 

A day earlier, the stock fell 5 percent following Tencent’s late Wednesday
report showing quarterly revenue missed estimates as well as expectations of
margin pressure, although profit beat forecasts.

 

Friday’s decline wiped $24 billion off Tencent’s market value, though at
$508 billion, it is still Asia’s most valuable listed company and fifth
globally behind Apple Inc, Alphabet Inc, Amazon.com Inc and Microsoft Corp.

 

South African media and e-commerce group Naspers said on Thursday it planned
to sell up to 190 million Tencent shares, or 2 percent of its holding, in a
sale that could earn Naspers up to $11 billion. It also said it had no plans
to further reduce its holding for the next three years.

 

“The funds will reinforce Naspers’ balance sheet and be invested in
classifieds, online food delivery and fintech globally,” said CICC analyst
Natalie Wu. “We think it is a good opportunity to buy into dips given
Tencent’s solid fundamentals.”

 

Jefferies analyst Karen Chan said, “Given Naspers’ largest single
shareholding and board representation in Tencent, we believe its stake sale
is unlikely to be a reaction to Tencent’s quarterly results. Instead of a
timed profit-taking move, we believe this is more to improve Naspers’ own
free cash flow and allow it higher flexibility in pursuing investment
opportunities.”

 

A Tencent spokeswoman said it was informed and supportive of Naspers’
decision, and that Naspers’ intention to keep its remaining stake for the
next three years demonstrated its confidence in Tencent.

 

 

Ghana sells 1.57 bln cedis ($356.3 mln) worth of 3-yr bonds at 16.5 pct

ACCRA (Reuters) - Ghana scooped all 1.57 billion cedis ($356.3 million)
tendered for a three-year domestic bond on Thursday and will pay a yield of
16.5 percent, joint transaction arrangers said.

 

Initial guidance for the bond, open to non-resident Ghanaians, was in the
range of 15.5 percent and 16.5 percent. The government was hoping to raise
900 million cedis from the sale.

 

($1= 4.4057 cedis)

 

 

South African rand slightly firms ahead of Moody's review decision

JOHANNESBURG (Reuters) - South Africa’s rand firmed slightly against the
dollar early on Friday in volatile trade as investors awaited Moody’s
sovereign credit rating announcement due later in the day.

 

At 0630 GMT, the rand traded at 11.8175 per dollar, 0.34 percent firmer than
its overnight close.

 

Rating agency Moody’s is set to announce whether it will downgrade South
Africa’s sovereign credit. It is the only major ratings agency still rating
South African debt as investment grade.

 

Moody’s rates the South Africa’s foreign and local currency debt on their
lowest investment grade rung of Baa3.

 

A downgrade to junk by Moody’s would see South Africa removed from Citi’s
influential World Government Bond Index, and could trigger up to 100 billion
rand ($8.46 billion) in selling by foreign investors.

 

In fixed income, the yield for the benchmark government bond due in 2026 was
up one basis point at 8.02 percent.

 

($1 = 11.8164 rand)

 

 

 

Gabon to revise hydrocarbons law to attract investment: oil ministry

LIBREVILLE (Reuters) - Gabon plans to revise its hydrocarbons law to attract
new investment, the oil ministry said on Thursday.

 

Under the current legal framework, the Gabonese state holds a minimum 20
percent stake in oil projects. The state oil company has the right to a
stake of up to 15 percent.

 

That law was implemented in 2014, the year that the market was shocked by a
50 percent drop in prices from over $100 a barrel to around $50 due to
global oversupply.

 

“The same fiscal framework cannot be applied both when the barrel is at $150
and when it’s at $50 or $60, which limits the room to maneuver of investors
interested in exploration,” the oil ministry said in a statement.

 

Like other oil-dominated economies of the Economic Community of Central
African States’ single-currency zone, Gabon has struggled due to the decline
in crude prices, forcing it to seek support from the International Monetary
Fund last year.

 

A panel of legal, economic and tax experts will meet from March 26 to 28 to
look at changes to the law, the ministry said.

 

Companies operating in Gabon include Royal Dutch Shell, Total and Tullow
Oil.

 

 

 

Mauritius trade deficit narrows 9.3 pct yr/yr in January

PORT LOUIS (Reuters) - Mauritius’ trade deficit narrowed 9.3 percent in
January to 7.78 billion rupees ($235.76 million) from a year earlier due to
lower imports of machinery and transport equipment, the statistics office
said on Friday.

 

The value of imports fell 10.3 percent to 12.65 billion rupees, with the
cost of machinery and transport equipment down to 2.95 billion rupees from
4.09 billion a year earlier, the agency said in a statement.

 

Exports from the Indian Ocean island nation fell by 11.7 percent to 4.87
billion rupees, the data showed.

 

Britain was the main buyer of goods from Mauritius in January, accounting
for 13.6 percent, while China supplied 17.6 percent of the nation’s imports.

 

($1 = 33.0000 Mauritius rupees)

 

 

 

S.Africa's retail sales rise slower in January as Black Friday effect wanes

JOHANNESBURG (Reuters) - South Africa’s retail sales rose slower than
expected in January, data showed on Thursday, after a sharp rise in the
final months of 2017 as the effect of Black Friday wore off.

 

Retail sales rose by 3.1 percent year-on-year in January, after increasing
by a revised 5.1 percent in December and 7.9 percent the month before that,
the statistics office said.

 

Sales by general dealers and retailers took the biggest knock, while those
in cosmetics also fell, the data showed.

 

 

Analysts said that an increase in Value Added Tax (VAT) due to start in
April would slow down sales further.

 

Under new President Cyril Ramaphosa the Treasury took the politically risky
step of raising VAT for the first time in 25 years in bid increase revenues
and slash the budget deficit.

 

Kevin Lings, chief economist at Stanlib, said: “We might however see some
buoyancy in March as people try to get ahead of the VAT increase and then
the April number may suffer as a consequence.”

 

On the depressed sales in January, Lings said it was a result of a slump in
sales after the Black Friday sales.

 

“It’s the Black Friday effect. This is the second year we’ve had strong
sales in November and December, and then the consumer almost takes a
breather into the second half of December and further than that,” he said.

 

Further gains in consumer confidence after Ramaphosa became president and an
anticipated cut in lending rates next week could cushion the impact on sales
after the VAT increase.

 

($1 = 11.8026 rand)

 

 

South Africa's Transnet signs new manganese deal with South32

CAPE TOWN (Reuters) - South Africa’s state-owned freight company Transnet
has signed a new deal with manganese miner South32 to export 2.6 million
tonnes a year of the mineral to European and Chinese markets, the companies
said on Thursday.

 

South Africa accounts for close to 75 percent of global manganese reserves,
Transnet said. The firm, which operates nearly three-quarters of the African
rail network, the bulk of which is in South Africa, provides rail export
lines for the country’s main commodities including coal and iron ore.

 

Gert de Beer, Transnet’s new business development officer, said the firm
will earn an estimated 10.4 billion rand ($880 million) from the
seven-and-a-half year manganese export deal.

 

He said a total of 12.5 million tonnes of manganese will be transported
every year once Transnet signs contracts with nine local manganese
producers, including South32. Most of the mineral will be from the Northern
Cape province and will be hauled on the Saldanha and Port Elizabeth ore
railway lines.

 

Transnet said the contract with South32 will be back-dated, and will run
from September 2015 until March 2023.

 

($1 = 11.8135 rand)

 

 

 

First Quantum hopes to resolve mammoth $8 bln Zambian tax bill

TORONTO/LONDON (Reuters) - Canada’s First Quantum Minerals on Wednesday was
hopeful of resolving a dispute with Zambia over a whopping 76.5 billion
Zambian kwacha ($8.07 billion) bill for unpaid duties on imported mining
equipment.

 

Zambia has reduced “significant” tax assessments against it in the past,
Chief Executive Philip Pascall said on a conference call with analysts. He
declined to speculate on the possible outcome of Zambia’s review of the
latest claim, which involves more than 23,000 documents and could take up to
six months.

 

The bill comprises $150 million in higher import duties, $2.1 billion in
penalties and $5.7 billion in interest, First Quantum said. It relates to
$540 million in mining equipment imported to its Sentinel copper mine
between 2012 and 2017.

 

“We have, in the past, seen assessments that were significant and then the
settlement might be reduced considerably,” Pascall said. “In this context,
it’s not prudent for us try and speculate.”

 

The company’s preliminary review of assessment documents, which require
approval by the Zambian Revenue Authority (ZRA) before imports are released,
show an erroneous application of both higher and lower duties than
appropriate, Pascall said.

 

It was unclear how Zambia calculated the $2.1 billion penalty, First Quantum
said, noting that smuggled goods tend to get a 300-percent penalty for
customs avoidance, while simple errors typically get a 15-percent penalty.

 

“This is clearly an eye-watering amount,” Bernstein analyst Paul Gait said
in a note to clients, comparing the $8-billion bill to First Quantum’s
market capitalization on Wednesday morning of about $9.5 billion.

 

“If anything like these claims is actually enforced, it will make Zambia
largely uninvestable for any mining company, and probably any other industry
as well,” Gait said.

 

First Quantum, which has paid a cumulative $3 billion in taxes to Zambia,
said it was unaware why the matter was made public, an unusual move for
Zambia. The company’s two copper mines in Zambia are unaffected by the
issue.

 

Zambia, which collected 39.1 billion kwacha in taxes last year, netted 4.4
billion kwacha in hidden assets from small companies after they were offered
amnesty for such declarations. Dozens of mining companies operate in Zambia,
primarily extracting copper.

 

The Zambian Revenue Authority said it had started detailed audits on all
companies for compliance, suggesting other miners may come under scrutiny.

 

First Quantum shares dipped nearly 2 percent on Wednesday to C$17.68. Shares
sank 12.4 percent in Toronto on Tuesday before trading in the stock was
suspended.

 

 

Markets edgy on China US trade war fears

Stock markets have been hit by fears that US President Donald Trump's plan
for tariffs on up to $60bn of Chinese products could trigger a trade war.

 

Japan's Nikkei share index fell 4.5% and in the US the Dow Jones sank 2.9%.

 

China responded to news of the planned tariffs by saying that while it did
not want a trade war, it was "absolutely not afraid" of one.

 

The US tariffs are a response to allegations of intellectual property theft
by China.

 

Beijing said it firmly opposed the new tariffs but China's ministry of
commerce said it was "confident and capable of meeting any challenge".

 

Trump: Tariffs on $60bn in Chinese goods

US exempts EU from steel tariffs

Reality Check: Is Trump right about US trade deficit?

Trump slaps big tariffs on metal imports

"China will not sit idly by its own legitimate rights and interests. We are
fully prepared to defend our legitimate interests," the ministry said.

 

But it said it hoped the US would not drag bilateral economic and trade
relations into danger.

 

Fears of a trade war pushed Asian stock markets down sharply. China's
Shanghai Composite Index closed down 3.4% while Hong Kong's Hang Seng index
ended 2.5% lower.

 

However, the falls were less severe in Europe. Germany's Dax index dropped
1.7%, with Volkswagen and steel maker ThyssenKrupp among the biggest losers.

 

The UK's FTSE 100 share index was 0.8% lower.

 

On Thursday, US stocks had tumbled, with the S&P 500 index ending the day
down 2.5%.

 

Earlier on Friday, China announced its own set of proposed tariffs worth
$3bn. Beijing said these were in response to US tariffs on steel and
aluminium imports announced by Mr Trump earlier this month.

 

The US tariffs on steel and aluminium imports come into effect this week.

 

But China, which is the 11th biggest exporter of steel to the US, said it
was considering measures "to balance out the losses caused to Chinese
interests".

 

The commerce ministry said the list of products under consideration for its
own tariffs includes pork, wine, fruit and nuts and stainless steel pipes.

 

It said it was planning two steps of retaliatory action:

 

*         a 15% tariff on 120 goods worth almost $1bn - including fresh
fruit, nuts and wine

*         a 25% tariff on eight goods worth nearly $2bn - including pork and
aluminium scrap.

*         Why is the US taking tariff action?

*         The US imports billions more goods from China each year than it
exports, creating a deficit of about $375bn last year - which is what Mr
Trump has railed against.

 

The president said on Thursday he had asked China to cut that deficit by
$100bn "immediately".

 

But the new US tariffs follow an investigation into Chinese policies ordered
by Mr Trump in August.

 

The White House said this found a range of "unfair" practices in China,
including restrictions on foreign ownership that pressured foreign companies
into transferring technology.

 

The review also found evidence that China imposes unfair terms on US
companies; steers investments in the US to strategic industries; and
conducts and supports cyber attacks.

 

Trump: Political heir to Abe Lincoln?

The problem facing Trump's China probe

EU and six other countries exempted from US metals tariffs

The White House said it had a list of more than 1,000 products that could be
targeted by tariffs of 25%. Businesses will have the opportunity to comment
before the final list goes into effect.

 

The US is also exploring ways to limit Chinese investment in the US and will
seek to bring complaints about unfair licensing terms to the World Trade
Organization, officials said.

 

Who are the potential losers in a trade war?

US officials had acknowledged the possibility of retaliation from China, but
said the Asian giant ultimately had more to lose.

 

If imposed as described, the US tariffs could lead to higher costs for
consumers, while China's retaliation would hit key sectors of the US economy
including agriculture and aerospace, analysts say.

 

China was the third largest market for US exports in 2016 and among the
biggest buyers of American corn, pork and aircraft.

 

China is also the world's biggest consumer of soybeans and consumes about
one third of the US crop.

 

But in news which will come as a relief to US farmers, Friday's announcement
did not include the soybeans.

 

Is there wider support in America for the plan?

Critics of Mr Trump's policies dismiss worries about the trade deficit,
saying the exchange benefits both sides.

 

However, there is growing bipartisan concern in America about China's
state-led economy and there is a worry that China is seeking technology that
could be deployed for military purposes.

 

Mr Trump's America First policy remains popular with large sections of the
US public.

 

However, trade watchers in Asia says China's retaliation will no doubt be
carefully targeted to hit key Trump-supporting areas of the US.

 

"The Chinese have been developing their list for more than a year and they
are very good," said Deborah Elms, executive director of the Asian Trade
Centre in Singapore.

 

"If things get very nasty, they can also make life very difficult for US
companies doing business in China. It's going to be very interesting."--BBC

 

 

Next admits toughest trading period 'for 25 years'

Annual profits at Next have fallen 8% after what the retailer described as
its most challenging year for 25 years.

 

The company said pre-tax profits dropped to £726.1m in the 12 months to
January, marking the third year in a row that profit has declined.

 

Next said that sales of full-priced products at its stores tumbled in
contrast to online demand.

 

It blamed "a weak clothing market" as well as "self-inflicted product
ranging errors and omissions".

 

Full priced sales at its shops fell by 7% but rose by 11.2% online. Total
revenue for the year fell by 0.5% to £4.1bn.

 

Next's chief executive, Lord Wolfson, said that "in many ways 2017 was the
most challenging year we have faced for 25 years".

 

He said that while it had been uncomfortable, "it has also prompted us to
take a fresh look at almost everything we do" including the structure of its
shop portfolio and the "in-store experience".

 

'Quite lazy'

Experts on the retail sector say mid-priced retailers like Next are in a
tough spot.

 

"The middle market is suffering and there isn't a way back home," Kate
Hardcastle, from consultancy Insight with Passion, told the BBC.

 

"I think retail generally in this market place has been quite lazy. As soon
as consumers had an alternative option that are perhaps are a better price,
better product or faster moving product, I think they've taken it.

 

"So you've seen the rise of Primark on the discount side, Asos and Zara on
the more fashion-orientated side and a consumer very much influenced by
Instagram and social media.

 

"It's just too much of a turnaround, too much of a challenge for these quite
heavyweight retailers who have expected to trade they always have.," Ms
Hardcastle said.

 

The latest retail data from the Office for National Statistics showed a rise
in sales at supermarkets in February, but falling trade at non-food stores
as consumers choose to spend their money on essential items.

 

A number of retailers and casual dining outlets have failed or face having
to radically restructure their businesses.

 

Both Toys R Us and Maplin have fallen into administration. Fashion chain New
Look this week secured an agreement with its creditors to close 60 UK stores
and cut 1,000 jobs.

 

In the restaurant sector, Jamie's Italian, burger chain Byron and Prezzo are
closing outlets and laying off staff.

 

Next said that it planned to roll out more concessions across its store
after trying out a number of new services at its shop in Manchester's
Arndale Centre.

 

These include; a florist, a prosecco bar, a restaurant, a children's
activity centre, a café, a card and stationery shop, a barber and "shortly a
car showroom".

 

It said that it was talks to add a spa operator and bridalwear concession to
the store and said it expected these steps would add £800,000 worth of
income to the shop.

 

Next also said it was in discussions to add other services to its stores
including travel, branded footwear and cosmetics.

 

"In the year ahead we currently plan to open 98 concessions across our store
portfolio and expect to generate annualised income of around £5m from these
concessions."

 

High Street v Online

Despite the fall in profit, the figure was in line with guidance Next
provided in its Christmas trading update and its share price rose by 2.9% to
£47.67.

 

Over the year, profit from Next's shops fell by 24% to £268.7m. Sales fell
7.9% to £2.1bn in what the retailer said was "a particularly difficult year"
for its stores.

 

However, online profits rose by 7.4% to £461.2m, with revenue up 9.2% at
£1.8bn.

 

Neil Wilson, senior market analyst at ETX Capital, said: "The shift in the
sales performance from retail to online begs the question as to when Next
will look to shift its operations away from stores and focus more on
maximising its online divisional strength."—BBC

 

 

EU warns US on data control flaws

The European Commission has warned America that its data controls should be
significantly strengthened.

 

Vera Jourova, the EU's Justice Commissioner, said present rules in America
were "weaker" than in the European Union.

 

She said that although people were more relaxed in the US about privacy,
that may change given the "wake up call" of the Facebook data breach.

 

"The tiger is out of the cage," she said.

 

Earlier this week, Ms Jourova, the EU commissioner with responsibility for
data protection, travelled to Washington to meet regulators.

 

"When I look at the American legislation, I don't see such robust measures
or a robust legislative framework [as the EU]," she told me.

 

"It will be interesting [to see] whether they will come in the future with
stricter rules because this scandal really shocked many people who I met in
Washington, be it the regulators, be it the enforcers, be it the people who
have their Facebook accounts.

 

"We see in the US that the data protection is weaker there. We would like to
see more robust and reliable legislation on the American side. I am not
satisfied but we have to live with the legislation as it is now in the US."

 

Read more from Kamal Ahmed here

 

The EU and the US have an agreement on data sharing across the Atlantic
called the Privacy Shield.

 

Ms Jourova said that it was constantly under review and the EU would act if
there was a "deterioration" in the relationship, but that "we are not there
yet".

 

In May the EU will enact a significant strengthening of the data protection
laws in Europe under the General Data Protection Regulation agreement.

 

It is seen as being much tougher than the rules in America where Facebook is
headquartered.

 

'Wake-up call'

The commissioner said she would be writing to Facebook demanding answers on
how the data breach involving the British firm, Cambridge Analytica,
happened.

 

"I think this is a big blow to the trust of people who entrusted Facebook
with their data," Ms Jourova said.

 

She deleted her own Facebook account some time ago because it was an "open
space" for hatred.

 

And she warned everybody to take extra care online and think about what they
are sharing.

 

"I think that this is also a wake-up call for the people who simply have
endless trust and who do nothing about the possible consequences," Ms
Jourova said.

 

"In this concrete case, I think that we cannot blame the people, they have
been victims of this behaviour and we have to regain trust as soon as
possible, but it's not on us, on the legislators, but it's on the companies,
Facebook first of all."

 

I asked her whether she was satisfied with Mark Zuckerburg's response to the
data breach in a blog post published on Wednesday night.

 

In it, the Facebook founder admitted that mistakes had been made and that
the company he heads will launch a review of how it protects users'
information and whether other breaches had happened.

 

"I understand his effort to explain and to regain the trust, but I think
that he himself must understand that it will take a much longer time," she
said.

 

"What we want from Facebook is to obey and to respect the European laws.

 

"The second thing we want them to do is many, many things under the
principle of social responsibility and this is where I need to trust
Facebook more, that they are going to continue, for instance, deleting hate
speech from their networks."—BBC

 

 

 

EU and six other countries exempted from US metals tariffs

A senior US official has said that the European Union (EU) and six other
countries will be exempt from steel and aluminium tariffs announced by
President Trump, at least temporarily.

 

Trade Representative Robert Lighthizer told a Senate panel that Mr Trump had
decided to "pause" the import duties while further discussions took place.

 

The tariffs of 25% on steel and 10% on aluminium are due to come into effect
on Friday.

 

The EU had argued it should be exempt.

 

Aside from the EU Mr Lighthizer said Argentina, Australia, Brazil, Canada,
Mexico and South Korea would be exempted.

 

"The idea that the president has is that, based on a certain set of
criteria, that some countries should get out," he told the Senate committee
hearing.

 

"There are countries with whom we're negotiating and the question becomes
the obvious one that you think, as a matter of business, how does this work?

 

"So what he has decided to do is to pause the imposition of the tariffs with
respect to those countries."

 

Earlier this month, the EU's trade commissioner said the bloc would "stand
up to the bullies" over protectionism.

 

Cecilia Malmström said protectionism was being "used as a weapon to threaten
and intimidate us".

 

In announcing exemptions for the European Union, Argentina, Australia, South
Korea and Brazil, the Trump administration has effectively narrowed the
countries that it is targeting with its protectionist trade policies. It
also blunts the potential fallout to the US economy from the implementation
of these trade barriers.

 

It pays to do some maths.

 

US imports of steel last year totalled $33bn.

 

But if the countries granted exemptions are removed from that total -
including Canada and Mexico, whose exemptions had already been announced -
then less than a third of US steel imports would be subject to tariffs.

 

This significantly lowers the potential economic impact of the tariffs - as
well as the potential help it might provide to domestic steel industry here
in the United States.

 

And it suggests that in steel tariffs, as with many policy actions the White
House has taken, the reality of what is being done falls slightly short of
the rhetoric.

 

Gareth Stace, a director with the trade association UK Steel, said the
temporary exemption from tariffs would be "greeted with an enormous sigh of
relief" by the UK's steel sector.

 

"It now provides us with the breathing room to find a more permanent
solution.

 

"The alternative would be a severe curtailment of our ability to export to
the US. With some 350,000 tonnes of steel sold to the US last year, 7% of
our total exports, it is clear any tariffs would ultimately hit the sector
hard," he added.

 

A UK government spokesperson said they welcomed the "signals" that the US
government was considering EU wide exemptions for limited time period.

 

"The government will continue to work closely with the EU and the US
Administration for a full exemption, and to ensure UK companies are not
negatively impacted, either directly or indirectly.

 

"We remain concerned about the impact of these tariffs on global trade and
will continue to work with the EU on a multilateral solution to the global
problem of overcapacity, as well as to manage the impact on domestic
markets."—BBC

 

 

Citigroup imposes restrictions on clients who sell guns

Investment bank Citigroup has said it will introduce new restrictions on
business customers who sell guns.

 

It joins a growing corporate backlash against gun violence in the US,
following the deadly school shooting in Parkland, Florida last month.

 

Citigroup said it would not work with firms that sell guns to customers who
have not passed a background check or who are younger than 21.

 

It has also barred the sale of bump stocks and high-capacity magazines.

 

The measures would apply to clients who offer credit cards supported by
Citigroup, or borrow money or use banking services through the firm.

 

The Parkland massacre, in which 17 died, has sparked a consumer boycott of
firms who have partnerships with America's powerful gun lobby, the National
Rifle Association.

 

It has led many firms to cut ties, including United and Delta airlines and
car rental giant Hertz, which have ended discounts for NRA members.

 

Others, such as tech firm Amazon, which distributes NRA television
programmes, face pressure to act.

 

Citi, which is the first Wall Street bank to take a stand on gun control,
called its measures "common sense".

 

Chief executive Michael L Corbat told The New York Times that he himself was
"an avid outdoorsman and responsible gun owner".

 

But he added: "As we looked at the things we thought we could influence, we
felt that, working with our clients, we could make a difference.

 

"Banks serve a societal purpose - we believe our investors want us to do
this and be responsible corporate citizens."

 

Risking revenue

The bank only has a few gun manufacturing companies as clients, but those it
does work with will be asked to give details about their sales practices.

 

If customers refuse, the bank said it would work with them to "transition
their business away" from Citigroup.

 

The company declined to outline the value of its work with gun-sellers, but
said "real revenue is at risk" if customers protest and business
relationships sour.

 

Seventeen students died when 19-year-old Nikolas Cruz opened fire at his
former school in Parkland in February.

 

It was the deadliest school shooting since 26 people were killed at
Connecticut school Sandy Hook in 2012.--BBC

 

 

 

Toys R Us founder Charles Lazarus dies at 94 as his company folds

The man who founded Toys R Us - the children's toy retailer - has died aged
94, one week after his company announced it was closing its doors.

 

Charles Lazarus began selling toys in 1957 in large supermarket-style shops
after he returned from World War II military service.

 

His death comes after the company announced it would close all US and UK
shops and seek bankruptcy protection.

 

The "heartbreaking" news of his death was tweeted on Thursday by the firm.

 

"There have been many sad moments for Toys R Us in recent weeks, and none
more heartbreaking than today's news about the passing of our beloved
founder, Charles Lazarus," the company wrote online.

 

In a press release, Toys R Us said he had been in "declining health" and
that "we will forever be grateful for his positive energy, passion for the
customer and love for children everywhere".

 

Earlier on Thursday, the company announced it would suspend the liquidation
sales of hundreds of its stores due to "unforeseen circumstances".

 

In a 2008 interview with Entrepreneur magazine, Lazarus explained that he
opened the business because all of his military friends were telling him the
same thing as they returned to the US following the war.

 

They were all saying they were going back to get married and raise children,
which gave him the idea to first begin by selling children's furniture.

 

After returning to his family's home in the Washington DC suburbs in 1948,
he converted his father's bicycle shop into a furniture business called
Children's Supermart, with the letter 'R' spelled backwards.

 

He later explained that the R was made to make the title of the business
look as though a child had written it.

 

The backwards R was also famously used in the name of Toys R Us.

 

Toys R Us to close all US stores

 

Lazarus later moved on to toys and games, saying that "toys are a great kind
of thing to sell, because they don't last that long".

 

Before the founding of Toys R Us, the market for children's toys was mostly
considered to be a seasonal industry.

 

A 1986 profile in the Atlantic Monthly magazine called Lazarus "the person
most responsible for loosening Santa's grip on the toy business".

 

Toys R Us sold nappies at steep discounts, hoping parents would pass the
savings along to their children, according to Bloomberg.

 

The company has struggled since Lazarus left in 1994, as the rise of online
shopping kept more and more families from visiting the shops.

 

Last week the company announced it would close all of its remaining
locations in the US, just a week after announcing it would do the same for
its businesses in the UK.--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> 

 


 

 


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.

 


 

 


(c) 2018 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

Invest Wisely!

Bulls n Bears 

 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

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

Skype:         Bulls.Bears 



 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180323/1e3873d7/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180323/1e3873d7/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 15037 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180323/1e3873d7/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180323/1e3873d7/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29388 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180323/1e3873d7/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29424 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180323/1e3873d7/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180323/1e3873d7/attachment-0011.jpg>