Major International Business Headlines Brief::: 26 March 2018

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Major International Business Headlines Brief::: 26 March 2018

 


 

 


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*  Rwanda economy likely to grow by 7.2 pct this year: finance minister

*  Germany's ATON plans buyout of S.Africa's Murray & Roberts

*  South African rand at one-month peak after Moody's rating reprieve

*  DP World wins 30-year Congo port concession

*  S.Africa mulling privatisation in Ramaphosa reform drive - Treasury chief

*  Moody's keeps South Africa rating at investment grade, revises outlook

*  Uganda joins Africa's big-debt club, central bank warns on default

*  China's Tencent loses $51 bln in market value in two days

*  Congo mines minister rejects industry proposal to retain exemptions

*  Trump trade war: China tells US it will defend national interests

*  Qantas 'very disappointed' by Australian cricket ball-tampering

*  David Davis says a deal with EU is 'incredibly probable'

*  Baselworld: Tag Heuer chief takes swipe at his industry

*  Australia-UK: First non-stop flight arrives in London from Perth

*  Facebook boss apologises in UK and US newspaper ads

*  Uber sells South East Asia operations to rival Grab

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Rwanda economy likely to grow by 7.2 pct this year: finance minister

KIGALI (Reuters) - Rwanda’s economy is likely to expand by 7.2 percent this
year, boosted by the services sector and a rebound in construction, the
finance minister said on Friday.

 

The International Monetary Fund, which held a joint press conference with
the minister, Claver Gatete, said it expects growth of 7-8 percent.

 

The East African economy, which relies on farming, grew 6.1 percent last
year.

 

“We don’t see any sort of serious downside risks to this forecast at this
time,” the IMF said.

 

Gatete said growth was expected to pick up to 7.8 percent next year.

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Germany's ATON plans buyout of S.Africa's Murray & Roberts

JOHANNESBURG (Reuters) - Germany’s ATON GmbH intends to make a buyout of
construction group Murray & Roberts at a cash offer price of 15 rand ($1.29)
per share, the South African firm said on Monday.

 

ATON, a private investment holding company, increased its shareholding in
Murray & Roberts to 29.9 percent between February and April 2017, making it
the largest shareholder.

 

($1 = 11.6556 rand)

 

 

South African rand at one-month peak after Moody's rating reprieve

JOHANNESBURG (Reuters) - South Africa’s rand raced to a one-month high
against the dollar on Monday as investors cheered ratings agency Moody’s
decision to affirm the country’s investment-grade credit rating and revise
its credit outlook to stable from negative.

 

At 0632 GMT, the rand traded at 11.6275 per dollar, 1.04 percent firmer than
its New York close on Friday and its firmest level since Feb. 27, Thomson
Reuters data showed.

 

Moody’s late on Friday affirmed South Africa’s debt at ‘Baa3’, the lowest
rung of investment grade, saying the previous weakening of national
institutions was gradually reversing which supported an economic recovery.

 

 

“This will ultimately provide the markets with a degree of comfort, and this
scenario is likely to influence the decision making at the Monetary Policy
Committee later in the week,” Nedbank analysts wrote in a note.

 

The South African Reserve Bank is due to announce its interest rate decision
on Wednesday.

 

A downgrade to a “junk” rating by Moody’s would have seen South Africa
removed from Citi’s World Government Bond Index (WGBI) and could have
triggered up to 100 billion rand ($8.58 billion) in asset sales by foreign
investors.

 

Moody’s is the only major ratings agency that rates South African debt as
investment grade after S&P Global Ratings and Fitch downgraded the sovereign
to “junk” status last year following a deterioration in the country’s
economic outlook.

 

South African has seen a return of sorely needed investor confidence since
President Cyril Ramaphosa replaced scandal-plagued Jacob Zuma, who resigned
in mid-February on the orders of the ruling African National Congress party.

 

($1 = 11.6487 rand)

 

 

 

DP World wins 30-year Congo port concession

DUBAI (Reuters) - DP World said on Sunday it had won a 30-year management
and development concession for a greenfield, multi-purpose port in the
Democratic Republic of the Congo (DRC).

 

The Dubai-owned port operator will set up joint venture with the Central
African country’s government to manage and invest in the Atlantic Coast’s
Port of Banana, it said in a bourse statement.

 

An initial $350 million will be invested to construct a 600-metre quay and a
25-hectare yard extension with a container capacity of 350,000 TEUs
(twenty-foot equivalent units) and 1.5 million tons for general cargo.

 

Congo has long looked to develop a port along its less than 50 km (30 miles)
of coastline to handle larger vessels than those that can reach its existing
shallow ports up the Congo River.

 

Construction is expected to start this year and take two years to complete.
A total project cost of over $1 billion, spread over four phases, will be
dependent on market demand.

 

DP World will control 70 percent of the joint venture with the government of
the DRC retaining the remaining 30 percent, the statement said.

 

The award includes an option to extend the concession for an additional 20
years.

 

 

S.Africa mulling privatisation in Ramaphosa reform drive - Treasury chief

JOHANNESBURG (Reuters) - South Africa will consider partially privatising
struggling state-owned companies as part of wide-ranging reforms set in
motion by President Cyril Ramaphosa since he came to power last month, the
head of the National Treasury said on Saturday.

 

Dondo Mogajane said South Africa was at the end of a credit downgrade cycle
after Moody’s held its investment-grade rating and raised its outlook on
Friday, partly because of Ramaphosa’s plan to reform state companies.
[L8N1R571B]

 

“For me, I see it as the end,” Mogajane told Reuters in an interview.

 

“Moody’s are saying there are things we can do and these are the things we
will be focused on,” he added, highlighting plans to stabilise debt, revamp
state firms and boost growth in sectors such as agriculture and tourism.

 

A downgrade to a “junk” rating by Moody’s would have seen South Africa
removed from Citi’s World Government Bond Index, and could have triggered up
to 100 billion rand ($9 billion) in asset sales by foreign investors.

 

Investors have cheered Ramaphosa’s arrival and his choice of respected
ministers in key roles, including former finance minister Pravin Gordhan as
minister of public enterprises.

 

Gordhan is tasked with turning around state companies that have plunged
public finances into crisis in recent years, including heavily indebted
power utility Eskom and South African Airways (SAA), which is on the brink
of bankruptcy.

 

“Why not?” Mogajane said when asked if it was possible parts of
government-owned companies could be sold.

 

“There have to be new ways of looking at these things. Are we talking
privatisation? Are we talking equity partnership? Let’s give an opportunity
for new ministers to unpack what it means.”

 

Mogajane gave as theoretical examples the sale of 49 percent of SAA and of
attracting private investors by splitting up the generation, transmission
and distribution sections of Eskom, one the world’s biggest power utilities.

 

His comments are likely to go down badly with powerful trade unions,
sections of the ruling African National Congress (ANC) and the Economic
Freedom Fighters, a disruptive red-beret-wearing opposition party.

 

Ramaphosa is walking a tight rope as he seeks to win back the support of
investors and voters who were disillusioned under former president Jacob
Zuma while holding together a divided ANC ahead of an election next year
that is likely to be the closest fought since the end of apartheid in 1994.

 

“All we can do is to offer the president all the support that we can to make
sure South Africa goes on the other side of what has essentially been a
downward spiral for the past few years,” Mogajane said.

 

 

Moody's keeps South Africa rating at investment grade, revises outlook

JOHANNESBURG (Reuters) - Ratings agency Moody’s on Friday affirmed South
Africa’s investment-grade credit rating and revised its credit outlook to
stable from negative, saying the previous weakening of national institutions
was gradually reversing which supported an economic recovery.

 

In a swift response, the South African Treasury welcomed the decision, but
acknowledged the warning by Moody’s that promises to improve political and
policy uncertainty were seen as essential in holding on to the country’s
rating.

 

Moody’s rates Pretoria’s debt at ‘Baa3’, the lowest rung of investment
grade.

 

The credit ratings agency said the recovery of institutions in Africa’s most
industrialised economy would - if sustained - kick-start the economy as well
as provide a stabilization of fiscal strength.

 

“The confirmation of South Africa’s ratings reflects Moody’s view that the
previous weakening of South Africa’s institutions will gradually reverse
under a more transparent and predictable policy framework,” Moody’s said in
a statement.

 

The decision was largely expected as all but two of 18 economists surveyed
by Reuters this week forecast that South Africa would avoid a credit rating
downgrade.

 

Ahead of the decision, the rand currency and local bonds traded firmly on
Friday, outpacing emerging market peers on anticipation of the reprieve by
Moody’s.

 

The Treasury said in a statement that the reprieve from Moody’s showed that
steady progress in meeting the objectives set out in new President Cyril
Ramaphosa’s “State of the Nation” address in February was key for the
country’s economic and fiscal prospects to be sustained.

 

“To improve South Africa’s investment and economic prospects, the government
continues to work diligently on practical steps to provide the necessary
policy certainty,” the treasury said.

 

South Africa’s economic growth has shown signs of recovery, expanding by a
surprise 3.1 percent in the fourth quarter, the highest rate since the
second quarter of 2016.

 

OUTLOOK STABLE

A downgrade to a “junk” rating by Moody’s would have seen South Africa
removed from Citi’s influential World Government Bond Index (WGBI), and
could trigger up to 100 billion rand ($9 billion) in asset sales by foreign
investors.

 

South African debt has already been dropped from one the widely used global
bond indexes, the JPMorgan Emerging Market Bond Index Global.

 

“The changing of the outlook to ‘stable’ is important news. It suggests
South Africa’s investment-grade rating is secure, for at least one rating
agency,” said Razia Khan, chief Africa economist at Standard Chartered.

 

“This considerably lessens the likelihood of World Government Bond Index
exclusion. It lessens the risk that South Africa will be subject to
significant outflows. It is positive for the currency,” Khan said.

 

S&P Global Ratings downgraded South African local currency debt to ‘BB+’, or
junk territory, in November, citing a deterioration in the country’s
economic outlook and public finances.

 

In April, Fitch downgraded the rating to sub-investment grade after Zuma
abruptly fired Pravin Gordhan as finance minister, saying it would likely
result in a change in economic policy direction. It kept both local and
foreign currency credit ratings unchanged at BB+ in November, with a stable
outlook.

 

The country has, however, seen a return of sorely needed investor confidence
since Ramaphosa replaced scandal-plagued Jacob Zuma, who resigned in mid
February on the orders of the ruling African National Congress party.

 

Ramaphosa has wasted little time in working to pull South Africa back from
the brink.

 

He reshuffled his cabinet in February, sacking and demoting several Zuma
allies and restored Nhlanhla Nene as finance minister - two years after
Nene’s sacking from the same role by Zuma.

 

Ramaphosa this week also suspended Zuma ally Tom Moyane as head of the
revenue service.

 

The Treasury also took the politically risky decision in its 2018 budget to
raise value added tax for the first time in 25 years was cheered by
investors and ratings firms.

 

“The stable outlook reflects a careful balance of risks. The new
administration faces equally significant opportunities and challenges,”
Moody’s said.

 

($1 = 11.7353 S.African rand)

 

 

 

Uganda joins Africa's big-debt club, central bank warns on default

KAMPALA (Reuters) - Uganda’s national debt has nearly trebled in the last
three years to more than 50 percent of gross domestic product, creating a
risk of default risk, since nearly two-thirds of that borrowing is external,
the central bank said.

 

In a report titled “State of the Economy” published late on Thursday, the
Bank of Uganda said the rising costs of servicing the country’s $15.1
billion of debt could hit economic growth because of reduced public
investment.

 

Over the last decade, the government of long-term President Yoweri Museveni
has ramped up borrowing, mostly from China, to fund infrastructure projects
including roads, power plants, fibre cable networks and an airport
expansion.

 

Three years ago, Uganda’s debt was just $6 billion.

 

The central said the debt posed “a risk of higher exposure or failure to
meet external debt obligations in case of exchange rate volatility and slow
growth in exports.”

 

According to finance ministry papers, interest repayments in the 2018/19
fiscal year will eat up 17.3 percent of state spending, the largest chunk of
the budget.

 

Uganda is not alone. Many African countries loaded up on cheap credit during
the quantitative-easing era and now face elevated interest costs as
developed-market rates creep up.

 

Ghana, Mozambique, Angola, Chad and Gabon are saddled with the highest debt
repayment costs, according to the London-based Jubilee Debt Campaign, which
advocates for more responsible lending to poor countries.

 

The economy of Uganda has been struggling in the last few years because of
poor agricultural output, weak exports and corruption. Growth was 3.9
percent last year, down from 4.8 percent the year before.

 

The sharp rise in debt is grist to the mill of opposition politicians, who
accuse Museveni of mishandling the economy and squandering an expected crude
oil windfall by loading up with debt from China.

 

Uganda is due to start pumping crude from western oil fields near the border
with the Democratic Republic of Congo in 2020.

 

“Museveni is mortgaging the future of Uganda,” Nobert Mao, head of the
opposition Democratic Party, told Reuters. “Lenders know that Uganda has
large deposits of oil and other minerals. We view Museveni’s actions as
reckless.”

 

Government officials have defended the borrowing, saying infrastructure
investment was necessary to make the economy more efficient.

 

But Fred Muhumuza, an economist at Kampala’s Makerere University, said any
growth benefits were likely to be outweighed by the burden of debt
repayments and the hit to basic public services.

 

“We are servicing our debt, but it is coming at the expense of basic things
that government must do,” he said.

 

Last month, the government said it would dramatically increase levels of
domestic borrowing from its initial budget forecast to help pay civil
servant salaries after a shortfall in state 

 

 

 

China's Tencent loses $51 bln in market value in two days

HONG KONG (Reuters) - Tencent Holdings Ltd’s shares fell more than 4 percent
on Friday, wiping out around $23 billion of market value, after the Chinese
internet firm’s largest shareholder, Naspers Ltd, lowered its stake for the
first time in 17 years.

 

The Hong Kong-listed stock opened almost 8 percent lower at HK$405, its
lowest start since Feb. 9, and closed at HK$420. Bourse data showed it was
the most traded stock on Friday, with turnover of HK$126 billion ($16.05
billion).

 

Tencent has now lost more than $51 billion in market value in two days,
having fallen 5 percent on Thursday - its steepest in over six weeks. That
decline came after Tencent late on Wednesday reported better-than-expected
profit but missed analysts’ revenue estimate and said aggressive investment
might squeeze profit margins.

 

With a current market capitalisation of $508 billion, Tencent is still
Asia’s most valuable listed firm and fifth globally behind Apple Inc,
Alphabet Inc, Amazon.com Inc and Microsoft Corp.

 

South African media and e-commerce group Naspers said on Friday it raised
$9.8 billion from the sale of 190 million Tencent shares, or 2 percent of
its holding. It said it will use the money to strengthen its balance sheet
and fund growth.

 

“It’s always hard to sell a fantastic asset like this, particularly one in
which you have such great belief for the long term. So yes, it wasn’t an
easy decision,” Naspers Group Chief Financial Officer Basil Sgourdos told
Reuters.

 

“It is not driven by any view on Tencent and the opportunities we see going
forward. It’s really driven by increased confidence in our e-commerce
segment and the returns it is delivering, so we need capital to grow that
business,” he said.

 

Naspers, which still has a 31.2 percent stake in Tencent, said it has no
plans to further reduce its holding for the next three years.

 

Sgourdos said he has “zero” concern over Tencent’s high valuation or about
last quarter’s revenue growth.

 

Bernstein analyst Bhavtosh Vajpayee said the sale of a small portion of
Naspers’ stake cannot be considered a judgement on Tencent’s prospects or
expensive valuations.

 

“We think the sale could have been better timed. Coming amidst trade war
fears in the markets as well as a mixed result for the fourth quarter of
2017, the news of the sale was quite a surprise,” he said. “Oddly timed is
how I would describe this.”

 

CICC analyst Natalie Wu called the development “a good opportunity to buy
into dips given Tencent’s solid fundamentals.”

 

Naspers’ interest in Tencent goes back at least as far as 2001 with a $33
million bet on the newly founded Chinese firm. Tencent’s breakneck growth
subsequently helped Naspers transform from a newspaper publisher into a
multinational with private equity-style investments.

 

In a statement, Tencent Chairman Pony Ma said, “Naspers has been a steadfast
strategic partner over a great many years. Tencent respects and understands
Naspers’ decision and looks forward to continuing to work closely together
in building a mutually supportive and prosperous future for both companies.”

 

($1 = 7.8490 Hong Kong dollars)

 

 

 

Congo mines minister rejects industry proposal to retain exemptions

KINSHASA (Reuters) - Democratic Republic of Congo’s mines minister rejected
a proposal by mining companies on Friday to retain exemptions and scrap some
taxes in exchange for higher royalties than those in a new mining code,
calling the taxes “untouchable”.

 

Mines Minister Martin Kabwelulu was reacting to a proposal from mining
companies under which the companies would accept higher royalty payments if
the government agreed to respect 10-year exemptions for existing projects
from changes to the fiscal and customs regimes and cancel certain taxes.

 

 

Trump trade war: China tells US it will defend national interests

Image caption President Trump has announced plans to impose tariffs on up to
$60bn of Chinese products

China warned the US it will defend its interests on trade, Chinese state
media says, after US President Donald Trump backed tariffs on Chinese goods.

 

The comments came in a phone call between China's vice-premier Liu He and US
Treasury Secretary Steven Mnuchin.

 

Mr Trump has announced plans to impose tariffs on up to $60bn (£42.5bn) of
Chinese goods, accusing China of intellectual property theft.

 

The move has rattled markets and stoked fears of a trade war.

 

Mr Liu, who is Chinese President Xi Jinping's top economic adviser, told Mr
Mnuchin that Beijing was "ready to defend its national interests" but hoped
that "both sides will remain rational and work together," China's official
Xinhua news agency reported.

 

During the telephone conversation, which is thought to be the highest-level
contact between the two governments since Mr Trump announced the tariffs on
Thursday, Mr Liu also accused the US of violating international trade rules
following its investigation into Chinese intellectual property practices.

 

What is a trade war - and how would it affect me?

Trump: Tariffs on $60bn in Chinese goods

What could China do in a US trade war?

Amid the tensions on trade, World Trade Organization Director General
Roberto Azevêdo has warned that new trade barriers would "jeopardise the
global economy".

 

Mr Trump, however, has said that the US move to raise tariffs against China
was already beginning to get results.

 

"Many other countries are now negotiating fair trade deals with us," the
president said on Friday.

 

Following Mr Trump's move, China said it was planning to retaliate with its
own set of proposed tariffs worth $3bn, including tariffs on groceries and
aluminium scrap.

 

Beijing has warned the US that it is "not afraid of a trade war", but has
said that it hopes to avoid one through continued dialogue.--BBC

 

 

Qantas 'very disappointed' by Australian cricket ball-tampering

The boss of a major sponsor of the Australian cricket team has told the BBC
he is "is very disappointed" by the ball-tampering controversy.

 

Alan Joyce, the head of Australian airline Qantas, said he wanted the
authorities to urgently complete the inquiry and take "appropriate action".

 

Qantas said it was "in discussions" with Cricket Australia.

 

Australian captain Steve Smith has said he knew of plot to tamper with the
ball in a match against South Africa.

 

He has been banned for one match and fined his entire match fee by cricket's
world governing body for his part in the incident.

 

Smith said the team's "leadership group" had a plan, carried out by Cameron
Bancroft, to tamper with the ball to "get an advantage".

 

Growing pressure

Mr Joyce told the BBC's Today programme said: "We are very disappointed.
Australia is all about 'fair go', and I think all Australians are very
disappointed with what's happened with the cricket team."

 

"We've let them know that we want them [the authorities] to urgently
complete the investigation and take the appropriate action."

 

Qantas, whose logo is prominent on the Australian team's shirts, said in a
statement: "We are in discussions with Cricket Australia as this issue
unfolds."

 

Other sponsors also expressed their dismay.

 

Weetbix-maker Sanitarium and brewer Lion, which makes XXXX, said in
statements they were considering their relationship with the national team.

 

Weetbix, whose relationship is particularly close as Steve Smith is a brand
ambassador for it, said: "Certainly it's under review as the actions taken
by the team in South Africa don't align with our own values - Sanitarium
does not condone cheating in sport."

 

Cricket Australia's latest financial statement show it earned 338.4m
Australian dollars (£184.7m) in media, sponsorship and spectator fees.

 

Cricket Australia said it would provide an update on the scandal by
Tuesday.--BBC

 

 

 

David Davis says a deal with EU is 'incredibly probable'

It is "incredibly probable" that the UK will reach a final deal with the EU,
the Brexit secretary says.

 

David Davis defended planning for a stalemate, saying it was like having
home insurance when "you don't expect your house to burn down".

 

He also hit back at Tory Eurosceptic concerns about what has been agreed so
far.

 

Last week prominent backbencher Jacob Rees-Mogg accused the government of
giving away "almost everything".

 

Owen Smith 'stood by principles' on Brexit

EU agrees guidelines 'in seconds'

Protesters throw fish in Thames in Brexit protest

But speaking on BBC One's Andrew Marr Show, Mr Davis said the UK had
succeeded in getting a transition deal for the period after March 2019 and
moving talks onto trade, adding: "So I don't think Jacob's got a point."

 

He insisted a solution could be found to avoid introducing physical border
checks on the border between Northern Ireland and the Republic of Ireland,
saying a "whole lot of technology" was available to achieve this.

 

And challenged on the EU's controversial "backstop" proposal of Northern
Ireland effectively remaining in the customs union, he said the
"overwhelmingly likely option" was a free trade and customs agreement which
would make finding a solution to the border question "much, much easier".

 

Mr Davis said the progress made in talks with Brussels meant it was now
"incredibly probable, very, very highly probable" that there would be a
final deal.

 

But he said "you can never stop making arrangements" for a potential no-deal
scenario, "because that's one of the things that guarantees the deal".

 

"You don't expect your house to burn down, it's less than a one in 100,000
chance, but you have house insurance anyway," he said.

 

'Under our control'

Mr Davis predicted the deal would be nothing like the current arrangements
between the EU and Norway. Theresa May has already ruled out this model,
which gives Norway access to the single market while accepting EU laws and
free movement and making annual financial commitments to Brussels.

 

"This will not really look like any other deal as it stands at the moment,"
Mr Davis said, predicting "the most comprehensive trade deal ever".

 

He also sought to reassure worries about fishing rights, saying that after
the end of the transition period in 2021: "We will negotiate with our
surrounding states so that we have access to their waters and theirs to
ours, and markets and so on, but it will be under our control."

 

Mr Rees-Mogg, meanwhile, is urging the UK to be prepared to walk out on
talks and warning that rowing back on Brexit would be "the most almighty
smash to the national psyche" akin to the Suez crisis, when Britain and
France attempted to regain control of the Suez Canal from Egypt in 1956.

 

"It would be an admission of abject failure, a view of our politicians, of
our leaders, of our establishment that we were not fit, that we were too
craven, that we were too weak to be able to govern ourselves and that
therefore we had to go crawling back to the mighty bastion of power that is
Brussels," he will say in a speech on Tuesday.

 

"As with the disaster of Suez it would end up being a national humiliation
based on lies."--BBC

 

 

Baselworld: Tag Heuer chief takes swipe at his industry

One on the most powerful men in luxury retailing has said it is time to stop
seeing smartwatch makers Apple and Google as threats.

 

Jean-Claude Biver, who runs watchmakers Tag Heuer, Hublot, and Zenith, said
the smartwatch will boost his industry.

 

Mr Biver was instrumental in reviving the Swiss industry after it was
devastated in the 1970s and '80s by Japan's quartz battery revolution.

 

The entrepreneur also warned about the impact of a US-China trade war.

 

Speaking to the BBC during the Baselworld watch and jewellery fair in
Switzerland, the global showcase for the Swiss industry, Mr Biver said Apple
and Samsung should be invited to exhibit at the event.

 

But Mr Biver, now head of watches at French luxury goods giant LVMH, said
traditionalists in the industry would be against it. "A lot of people
wouldn't want Apple here. I know people who say this [event] should only be
for the Swiss.

 

"The Apple watch is a watch: it's a bracelet that gives you information:
hours, minutes, the date.

 

"But there are too many people here [in Basel] who don't think it's a watch.
There are people here who say, if you're not Swiss you can't be here. It's
like telling, say, Kia they can't come to the Geneva Motor Show because they
are South Korean."

 

Mr Biver's sideswipe at sections of the industry will resonate because of
his decades of experience in deal-making and reviving brands, especially
after Japanese manufacturers emerged as powerful competitors with their
quartz battery products.

 

His early use of product placements, notably in James Bond films, and
celebrity endorsements are now routine in the luxury goods sector.

 

Apple sold about 20 million smartwatches last year, and many analysts think
it will be the next big challenge for the Swiss industry.

 

Baselworld saw the launch of several hybrid smartwatches, which mix
traditional mechanical features with connectivity.

 

But, crucially, the technological lead at Apple and Samsung has made them
hugely popular among younger consumers.

 

Mr Biver said on of the biggest challenges facing his industry is getting a
new generation to buy traditional watches.

 

"Apple and Samsung are promoters of the watch because they teach people to
wear something on their wrist.

 

"Imagine a generation who did not wear any watch. It would be much more
difficult for us to sell them something."

 

The traditional watch makers should embrace Apple and Samsung rather than
run away because they could learn so much, the industry veteran said.

 

Mr Biver said a far greater threat was the current geo-political situation.
A China-US trade war and growth of protectionism threatens to bring the
luxury sector's recovery to a halt.

 

"When the mood changes to pessimism, the luxury sector suffers
 At this
moment, we are on the verge of something that could be damaging."

 

He said there had recently been a big turnaround in luxury goods sales in
China, and particularly in watches among young people. "China has been the
driving force in the recovery" of luxury goods, he said.

 

Swiss watch exports were up 12.8% in the first two months of the year, with
Hong Kong and China both rising around 30%.--BBC

 

 

 

Australia-UK: First non-stop flight arrives in London from Perth

The first scheduled non-stop flight between Australia and the UK has touched
down in London's Heathrow Airport.

 

Qantas Flight QF9 completed its 14,498km (9,009-mile) journey from Perth in
just over 17 hours.

 

It is part of ambitious plans by Qantas to add ultra long-haul flights to
its schedules.

 

The Australian flag carrier's Chief Executive, Alan Joyce, has called the
new service a "game-changing route".

 

How UK-Australia travel evolved to one flight

The low-cost airline changing the way we fly

Can long-haul air travel also be low cost?

Speaking at an event ahead of the inaugural flight, he said the earliest
Qantas flights between Australia and the UK - known as the "kangaroo route"
- had taken four days and involved seven stops.

 

 

Western Australia's state government is also hoping to see an increase in
tourist numbers as a result of the new direct route.

 

The historic flight, on a Boeing 787-9 Dreamliner carrying more than 200
passengers and 16 crew, departed from Perth at 18:49 local time on Saturday.

 

 

Michael Smith, a pilot and author who was a passenger on the flight, said it
removed the "drudgery" of changing planes and disturbing sleep.

 

He told BBC Breakfast: "This way you get on in one place and land where you
want to to go."

 

Mr Smith said the aviation "holy grail" would be to fly direct from the east
coast of Australia to London or New York.

 

One man, who said he and his partner fly from Australia every year to visit
family in Barton-on-Sea, Hampshire, said the trip "flew by".

 

He said: "It was amazing, the best flight we ever had, we feel fresh as
daisies."

 

Another man said: "It was great not to have the stop and 17 hours was very
comfortable."

 

One woman returning to the UK said there had been a "lot of excitement" on
board.

 

She said not having the stop "made such a difference", adding: "You want to
get back, you don't want to be hanging around terminals."

 

To minimise the discomfort of such a long flight, the plane is equipped with
features that provide improved air quality and lower cabin noise.

 

Some of the passengers agreed to share data on their sleeping and activity
patterns with researchers from the University of Sydney.

 

They wore special monitors and devices that also recorded data about their
mental state, eating patterns and hydration levels.

 

Some aviation fans in the UK were up early tracking the plane's flight path
and anticipating its landing.

 

"We have a touchdown!!" wrote Twitter user Andrew Leong, who said it was "a
milestone in the aviation industry".

 

Another user, Leigh Mason, said the achievement was "amazing", adding: "Hope
to fly this one day."

 

The Premier of Western Australia, Mark McGowan, tweeted on arrival in
London: "A new era of travel and opportunities for Western Australia's
economy has officially begun."

 

Those arriving in London in the early hours following their historic flight
shared images of the welcome they received at Heathrow Airport.

 

The new Perth-London flight is around three hours faster than other routes
that involve stops in the Middle East to change planes or refuel.

 

The flight is the world's second-longest after Qatar Airways' route from
Doha to Auckland, which spans 14,529km, according to the International Air
Transport Association.

 

Other carriers, including Emirates and United Airlines, have also flown
non-stop journeys greater than 14,000km.

 

In 2017, United Airlines launched a route from Los Angeles to Singapore,
offering the longest-distance non-stop flight available from the US.

 

But Singapore Airlines has provided the world's longest flight, travelling
more than 15,300km from Singapore to New York on a direct route that was
discontinued in 2013.--BBC

 

 

Facebook boss apologises in UK and US newspaper ads

Facebook boss Mark Zuckerberg has taken out full-page adverts in several UK
and US Sunday newspapers to apologise for the firm's recent data privacy
scandal.

 

He said Facebook could have done more to stop millions of users having their
data exploited by political consultancy Cambridge Analytica in 2014.

 

"This was a breach of trust, and I am sorry," the back-page ads state.

 

It comes amid reports Facebook was warned its data protection policies were
too weak back in 2011.

 

The full-page apology featured in broadsheets and tabloids in the UK,
appearing on the back page of the Sunday Telegraph, Sunday Times, Mail on
Sunday, Observer, Sunday Mirror and Sunday Express.

 

In the US, it was seen by readers of the New York Times, Washington Post and
Wall Street Journal.

 

Facebook's Zuckerberg speaks out over Cambridge Analytica 'breach'

Facebook boss summoned over data claims

In the advert, Mr Zuckerberg said a quiz developed by a university
researcher had "leaked Facebook data of millions of people in 2014".

 

 

"I'm sorry we didn't do more at the time. We're now taking steps to make
sure this doesn't happen again," the tech chief said.

 

It echoes comments Mr Zuckerberg made last week after reports of the leak
prompted investigations in Europe and the US, and knocked billions of
dollars of Facebook's market value.

 

Mr Zuckerberg repeated that Facebook had already changed its rules so no
such breach could happen again.

 

"We're also investigating every single app that had access to large amounts
of data before we fixed this. We expect there are others," he stated.

 

"And when we find them, we will ban them and tell everyone affected."

 

The ads contained no mention of the political consultancy accused of using
the leaked data, Cambridge Analytica, which worked on US President Donald
Trump's 2016 campaign.

 

The British firm has denied wrongdoing.

 

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 Alexsandr 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 without their knowledge.

 

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 then used it
to psychologically profile people and deliver pro-Trump material to them
during the 2016 US presidential election campaign.

 

Facebook has said Dr Kogan passed this information on to Cambridge Analytica
without its knowledge. And Cambridge Analytica has blamed Dr Kogan for any
potential breach of data rules.

 

But 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.

 

Did Facebook get a warning seven years ago?

As first reported in the Sunday Telegraph, Ireland's Data Protection
Commissioner (DPC) warned Facebook's security policies were too weak to stop
abuse in 2011, some three years before the breach took place.

 

Following an audit, the DPC said relying on developers to follow information
rules in some cases was not good enough "to ensure security of user data".

 

It also said Facebook processes to stop abuse were not strong enough to
"assure users of the security of their data once they have third party apps
enabled".

 

Facebook said it strengthened its protections following the recommendations
and was told it had addressed the DPC's original concerns after a second
audit in 2012. The tech firm also said it changed its platform entirely in
2014 with the regulator's recommendations in mind.--BBC

 

 

Uber sells South East Asia operations to rival Grab

Uber is selling its South East Asia ride-share and food delivery businesses
to regional rival Grab.

 

The move marks a further retreat from international operations for Uber,
after it sold its China business to local rival Didi Chuxing.

 

Both firms describe the deal as a win for their passengers, but analysts
warn it could mean higher prices.

 

Grab is South East Asia's most popular ride-sharing firm with millions of
users across eight countries.

 

Under the terms of the deal, Uber will take a 27.5% stake in Singapore-based
Grab. Uber's chief executive, Dara Khosrowshahi, will also join Grab's
board.

 

The value of the deal has not been made public.

 

Grab's chief executive Anthony Tan said the deal "marks the beginning of a
new era" in which the merged business would be better placed to serve
customers.

 

Uber's Mr Khosrowshahi said the deal would "help us double down on our plans
for growth as we invest heavily in our products and technology".

 

The deal marks Uber's third retreat after it withdrew from China in 2016 and
sold its Russia business to local firm Yandex last year.

 

Mr Khosrowshahi has been preparing the firm for an initial public offering
in 2019.

 

Uber invested $700m in its Southeast Asia business and another $2bn in China
before it sold its operations there.

 

In November, Mr Khosrowshahi, said the company's Asian operations were not
going to be "profitable any time soon".

 

Analysis: Karishma Vaswani, Asia business correspondent

Uber is keen to push the message that this isn't a retreat from South East
Asia - that instead, this is a merger of equals - a partnership of sorts.

 

But while it's true that Uber does get a sizeable stake in Grab, it is hard
to ignore that this is the third market it is pulling out of. First China,
then Russia - now South East Asia.

 

Look closely at the internal email that Uber chief executive Dara
Khosrowshahi sent his staff announcing the deal, and you can see a hint of
an acknowledgement that perhaps their global strategy of barging into
overseas markets isn't going as well as Uber had planned.

 

"One of the potential dangers of our global strategy," he writes, "Is that
we take on too many battles across too many fronts with too many
competitors."

 

This deal does beg the question what does Uber do next in Asia - because it
is only really Japan, South Korea and India that it now operates in - and in
all of those markets, it is facing competition of some sort, home grown or
otherwise.

 

If this defeat at Grab's hands is anything to go by - Uber best be prepared
for a tough battle ahead.

 

Less choice?

Last year, Uber lost $4.5bn (£3.2bn) - and its chief executive - as it
underwent a fundamental shake-up following a harassment scandal.

 

But some fear that its withdrawal from South East Asia could result in
higher prices for users there.

 

"Industry consolidation will mean fewer choices for commuters and fares are
likely to trend higher over time," said Corrine Png, a transport analyst
from Singapore-based research firm Crucial Perspective.

 

Competition in the ride-hailing sector has been fierce, resulting in
discounts and promotions offered to riders and drivers reducing profit
margins.

 

But consolidation in the industry was widely expected after Japan's Softbank
Group made a large investment in Uber last year.

 

SoftBank is a major investor in several of Uber's rivals including Grab,
China's Didi Chuxing and India's Ola.

 

It is believed to have pushed for consolidation in order to improve
revenues.

 

Grab currently operates in eight countries including Singapore, Malaysia,
Indonesia and Vietnam.

 

The deal - which is yet to be approved by local regulators - includes the
sale of all of Uber's operations in the region, including its key food
delivery service Uber Eats.

 

As a result of the merger, the GrabFood service will expand from two to four
South East Asian countries by next quarter, Grab said.

 

The company said the deal would help it move towards profitability, and
would also help to increase "adoption of the GrabPay mobile wallet and
support Grab's growing Financial Services platform".--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
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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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