Major International Business Headlines Brief::: 07 May 2018

Mon May 7 11:37:35 CAT 2018

 <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::: 07 May 2018

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

*  Growing store base lifts South African pharmacy group Dis-Chem's FY
profit

*  South Africa's KPMG arm welcomes review and owns up to failings

*  South Africa serves suspended revenue service head with disciplinary
charges

*  South Africa's Sibanye to replace KPMG as auditor in 2019

*  Tunisian annual inflation rises to 7.7 pct in April, record level

*  Zambia 2018 maize output to fall about 34 percent - government

*  Malawi's president says economy to grow by 6 percent in 2019

*  Kenya private sector activity jumps in April - Markit

*  Pace of Uganda's private sector activity weaker on lower orders, output

*  Apple shares hit all-time high after Buffett raises stake

*  Air France-KLM boss quits as staff reject pay deal

*  Nestle pays Starbucks $7.1bn to sell its coffee

*  UK-EU customs partnership 'still on table'

*  Vanilla price rise proves chilling for ice-cream makers

*  Car industry on alert over reports some hybrids face a ban

 <mailto:info at bulls.co.zw> 

Growing store base lifts South African pharmacy group Dis-Chem's FY profit

JOHANNESBURG (Reuters) - South African drugstore chain Dis-Chem Pharmacies
reported on Friday a 13.7 percent increase in full-year adjusted earnings
and 13.3 percent jump in turnover, supported by a growing store base and
tight cost controls.

The firm said adjusted headline earnings per share (HEPS) for the year ended
Feb. 28 increased to 78.7 cents per share from 69.2 cents per share in the
prior year.

HEPS strips out certain one-off items and is the main profit measure in
South Africa.

Group turnover increased to 19.6 billion rand ($1.56 billion) from 17.3
billion rand in the prior year.

The group declared a gross final dividend of 12.73 cents per share, compared
with 7.3 cents in the prior year.

($1 = 12.5860 rand)

 <mailto:info at bulls.co.zw> 

South Africa's KPMG arm welcomes review and owns up to failings

JOHANNESBURG (Reuters) - KPMG’s scandal-hit South African arm on Sunday
welcomed a review of its turnaround strategy by the Independent Regulatory
Board for Auditors (IRBA), saying its failings led to a negative image of
auditors.

The global auditor has been under scrutiny since 2017 over work done for a
company owned by the Gupta family and more recently for small lender VBS
Mutual Bank.

The Guptas are accused of using their links to former president Jacob Zuma
to influence government decisions and the award of tenders. Both the family
and Zuma deny wrongdoing.

The firm responded by appointing veteran public servant and former chairman
of the Development Bank of Southern Africa Wiseman Nkuhlu as its chairman in
January and said it was reviewing the work of its partners.

Two KPMG partners resigned after facing disciplinary charges over failure to
disclose financial interests in connection to VBS Mutual Bank, which was
placed under curatorship.

The IRBA said on Friday it had taken the unusual step of appointing a
specialised team to review KPMG’s turnaround strategy starting this week.

KPMG said it had since last September undertaken far-reaching reforms which
seek to put quality and integrity at the heart of the firm.

“We acknowledge that failings at the firm have contributed to adverse
perceptions about the audit profession and we accept responsibility to work
towards redressing this situation,” KPMG said in a statement, adding that it
welcomed the review.

KPMG said it had since September been cooperating with the IRBA and would
continue to do so during the review.

“Recent revelations about VBS have unsettled clients and we recognise they
require reassurance that KPMG remains a good firm to be associated with,”
KPMG said.

The fallout over the scandals at KPMG has been swift.

In April, South Africa’s Auditor General said he was terminating all
government contracts with KPMG, saying the scandals had cast doubt over the
firm’s ethical conduct.

Last week Barclays Africa, one of KPMG’s major financial customers and South
Africa’s second-biggest lender by market value, and gold miner
Sibanye-Stillwater joined more than 10 other clients, to break ties with
KPMG since 2017.

South Africa serves suspended revenue service head with disciplinary charges

JOHANNESBURG (Reuters) - South Africa has served the suspended head of its
revenue service Tom Moyane with disciplinary charges related to alleged
misconduct during his tenure, the president’s office said on Friday.

Moyane is one of the top government officials appointed by former president
Jacob Zuma to be replaced since Cyril Ramaphosa took the helm as president
in February, pledging to tackle endemic corruption.

Weeks after his election as head of state, Ramaphosa reshuffled the cabinet,
firing or demoting several ministers viewed as Zuma allies.

Ramaphosa suspended Moyane in March after saying he had lost confidence in
Moyane’s ability to lead the agency. The president took that step after
Moyane refused to step down.

Days after Zuma ally Moyane was suspended, ratings agency Moody’s affirmed
South Africa’s investment-grade credit rating.

Moody’s said the changes at the South African Revenue Service and cabinet
had set the economy on a positive path.

On Friday, the president’s office said Moyane would face the charges over
his alleged misconduct in violation of his duties and responsibilities in
terms of the revenue service Act.

“The disciplinary inquiry relates to alleged leadership and organisational
failures,” the president’s office said.

Moyane could not be reached for comment.

The agency has been plagued by infighting over the last the three years and
is subject to ongoing government investigations.

($1 = 12.5765 rand)

South Africa's Sibanye to replace KPMG as auditor in 2019

JOHANNESBURG (Reuters) - Sibanye-Stillwater said on Friday that it would
this year start a process of finding a new external auditor for 2019 to
replace KPMG’s scandal-hit South African arm.

The mining company said it plans to launch the search for a new auditor
after its annual meeting with shareholders on May 30. This follows a list of
major clients who have dropped the auditing firm, including Barclays Africa.

Tunisian annual inflation rises to 7.7 pct in April, record level

TUNIS (Reuters) - Tunisia’s annual inflation rate rose to 7.7 percent in
April from 7.6 percent in March, official data showed on Saturday, to hit a
record level.

The central bank raised its key interest rate to 5.75 percent from 5.0
percent last March to tackle inflation.

The food and drink price index rose 8.9 percent in April from a year
earlier, the price of vegetables rose 23.8 percent, the state statistics
office said.

Sources told Reuters the high rate of inflation will likely lead the central
bank to raise the interest rate to 6.0 percent this month.

Zambia 2018 maize output to fall about 34 percent - government

LUSAKA (Reuters) - Zambia’s maize production for the 2017/2018 crop season
will fall to 2.39 million tonnes from 3.61 million tonnes produced in the
previous season largely due to drought, a government survey said on Friday.

“Dry spells have negatively affected the production of some crops in the
country. In addition we had reports of army worms and stalk borers attacking
maize fields,” the ministry of agriculture said.

Dry weather and an outbreak of armyworms, which ravaged southern Africa
earlier last year, have raised concerns over the crop output.

Malawi's president says economy to grow by 6 percent in 2019

LILONGWE (Reuters) - Malawi’s economy will grow by as much as 6 percent in
2019 from a 4 percent expansion expected in 2018, President Peter Mutharika
said on Friday, in remarks ahead of the presentation of the national budget
in parliament.

Malawi, which is heavily reliant on financing from foreign donors, mostly
Britain, other European Union countries and the United States, has restored
economic stability after a period when the siphoning off of funds by
government officials led to donors freezing budgetary support in 2013.

A former justice minister and scores of other government officials were
convicted of complicity in the “Cashgate” scandal.

“It has taken us three years to turn around the economy from the devastation
of Cashgate, and through national disasters of floods, drought and hunger,”
Mutharika said.

Landlocked Malawi is a net importer of fuel and other essential commodities,
mainly agricultural inputs and drugs.

“This month, four years ago - we were speaking of a broken economy,
stagnated projects and smashed hopes. Today, we have the economy fixed,
confidence regained, projects moving, and hopes rising,” said Mutharika.

Malawi, which is experiencing power rationing due to inadequate generation,
aims to more than double power supply from the current 360 Megawatts (MW) to
1,000 MW by 2023, by diversifying from hydro electricity generation to coal,
wind, solar and gas, Mutharika said.

Mutharika said Malawi planned to build an international airport along Lake
Malawi, as part of ambitious plans to turn the country’s tourism industry
into a major source of revenue.

The lake, which has also been subject of oil exploration in recent years,
covers more than half of the country and is a major tourist attraction.

Elections are due in Malawi in May 2019 and Mutharika has declared that he
will seek a second term, despite recent criticism of his age. He will be 79
next year.

Kenya private sector activity jumps in April - Markit

NAIROBI, May 4 (Reuters) - Kenya’s private sector activity jumped in April,
continuing its recovery after months of slowdown last year due to a
prolonged and volatile election period, a survey showed on Friday.

The Markit Stanbic Bank Kenya Purchasing Managers’ Index(PMI) for
manufacturing and services rose to 56.4 in April from 55.7 in March.
Anything above 50 denotes growth; anything below,

contraction.

“The strength of the recovery in private sector activity continued last
month. This shows that the underlying demand conditions in the economy are
consistent with a solid recovery

in economic activity,” Jibran Qureishi, regional economist for East Africa
at Stanbic Bank said.

Output is up for the fourth month in a row as new orders rolled in from both
local and foreign markets.

However, the survey cautioned on the prospect of inflation rising in coming
months.

“The combination of rising demand, both domestic and external, with rising
input costs and rising employment have the potential to exert meaningful and
durable upward pressures on inflation,” Qureishi said.

Kenyan inflation eased to 3.73 percent in April year-on-year from 4.18
percent last month, the latest data from the statistics office showed. The
rate is at its lowest level since January 2013.

In October, the PMI dropped to 34.4, its lowest level since the series began
in January 2014, after the opposition boycotted a repeat presidential
election ordered by the Supreme Court.

President Uhuru Kenyatta was declared the winner and he was sworn into
office for a second term at the end of November.

In late January, opposition leader Raila Odinga conducted a symbolic
“swearing in” which the government has said was illegal.

Kenyatta and Odinga have since reconciled and promised to unite the country
after the elections in which around 100 people were killed mainly in clashes
between opposition supporters and security forces.

The Finance Ministry forecasts economic growth will rebound to 5.8 percent
growth in 2018, from 4.9 percent last year.

Pace of Uganda's private sector activity weaker on lower orders, output

KAMPALA, May 4 (Reuters) - Economic activity in Uganda’s private sector
slowed in April from the previous month, undermined by lower output and
fewer new orders in the industry, services and retail segments, a survey
showed on Friday.

The Markit Stanbic Bank Uganda Purchasing Managers’ Index (PMI) declined to
51.8 last month, down from March’s 53.2. A reading above 50 indicates
expansion; anything below, a contraction.

Markit’s survey noted “business activity contracting across the industry,
services and wholesale and retail categories,” and cited particularly lower
output and orders.

The three categories are among the five the survey monitors, which also
include agriculture and construction.

During April, Markit said, there was healthy growth in output, new orders
and employment across agriculture and construction which helped to partly
absorb the impact from the

weak performance in other sectors.

Jibran Qureishi, Stanbic Bank’s economist for East Africa, said overall the
business activity in private sector was experiencing an expansion but that
the expansion was uneven and

that the “non-uniform nature of the economic expansion could be a reason for
the absence of consumer inflation pressures.”

Uganda’s year-on-year inflation edged down to 1.8 percent in April from 2.0
percent in March on the back of a drop in food prices.

Apple shares hit all-time high after Buffett raises stake

Warren Buffett enjoys an ice cream during one of Berkshire Hathaway's annual
shareholder meetings.

Apple shares have hit an all-time high on news that legendary investor
Warren Buffett now has a roughly 5% stake in the tech giant.

Shares in Apple, already the world's most valuable company, rose by almost
4% on Friday to more than $183.7 each.

Mr Buffett said his Berkshire Hathaway group bought about 75 million more
shares of the iPhone maker in the first three months of the year.

His investment moves are closely watched across the world.

Mr Buffett's company has been buying up shares in Apple since 2016.
Berkshire Hathaway claimed a nearly 3.3% stake, or more than 166 million
shares, at the end of last year.

At the time, the holding, one of Berkshire's biggest stock market gambits,
was worth more than $28bn.

Now, after the additional share purchases and an 8% rise in price since the
start of the year, the firm's stake is worth more than $44bn.

Apple's market value now stands at almost $932bn.

"It is an unbelievable company," Mr Buffett said in an interview with CNBC.
"If you look at Apple, I think it earns almost twice as much as the second
most profitable company in the United States."

Some analysts have worried the technology giant's best days are behind it,
as competition in the smart phone market increases and sales growth slows.

But the company has been building up other lines of business, including the
services unit that includes the App Store, Apple Music and Apple Pay.

Apple this week reported profit of $13.8bn in the first three months of the
year, rising 25% from the same period in 2017.

The company also has a generous share buyback and dividend programme that is
expanding.

Apple, citing new US tax cuts, this week said it would buy back $100bn worth
of shares and increase its dividend.

The moves, which return money to its shareholders, had been widely
anticipated in the aftermath of the new tax law, which lowered the corporate
tax rate and reduced the incentives for firms to hoard cash overseas.

Berkshire Hathaway will host its annual meeting for shareholders in Omaha,
Nebraska this weekend.--BBC

Air France-KLM boss quits as staff reject pay deal

Air France-KLM chief Jean-Marc Janaillac has announced his resignation after
French staff at the strike-hit airline rejected a new pay deal.

"I accept the consequences of this vote and will tender my resignation to
the boards of Air France and Air France-KLM in coming days," he said.

In a ballot, 55% of the French employees rejected the deal.

Air France-KLM - one of Europe's biggest airlines - has seen a series of
strikes in recent weeks.

The industrial action has cost the Franco-Dutch alliance millions of euros.

In the ballot, company employees rejected a 7% pay rise over the next four
years.

They have been demanding a 5.1% increase in 2018 instead - in a dispute that
began in February.

"This is an enormous mess that will only put a smile on the faces of our
competitors," Mr Janaillac told a news conference.

He said he hoped his departure would spark "a more acute collective
awareness" before leaving without taking questions.

The 65-year-old chief executive, who had been in the job for less than two
years, earlier promised to quit if the pay deal was rejected.

He had been trying to cut costs at the company, amid rising competition from
low-cost airlines and Gulf national carriers.

He will officially resign next Wednesday, Air France-KLM said.

'Pain'

Meanwhile, the company's unions said further strikes would be staged in the
coming days.

Air France-KLM has already downgraded its profit and growth expectations for
2018.

Air France and KLM merged in 2004. They transport tens of millions of
passengers around the world every year.

Labour reforms launched by French President Emmanuel Macron have also led to
strikes by employees of the state-owned SNCF rail company.

British Airways and Lufthansa have already undergone deep cost-cutting in
recent years, and some analysts say Air France has lagged behind.

"There is inevitably some pain for staff when structural changes are made,
but once that is dealt with, you're left with a much healthier company,"
said aviation consultant John Strickland.

"That has been proved in the cases of the turnarounds achieved by Iberia and
British Airways."--BBC

Nestle pays Starbucks $7.1bn to sell its coffee

Nestle has announced that it will pay Starbucks $7.1bn (£5.2bn) to sell the
company's coffee into homes.

The Nescafe and Nespresso owner will own the rights to market Starbucks'
coffee, which it says generates $2bn in annual sales.

Nestle chief executive Mark Schneider described it as a "significant step".

Mr Schneider, who in 2016 became the first outsider to run Nestle in almost
100 years, is attempting to boost the company's profit through expansion.

The Swiss consumer goods giant said 500 Starbucks employees will transfer
over to its business but they will continue to be located in Seattle, the
group's headquarters for the last 47 years.

Last year, Nestle paid an estimated $425m for a 68% stake in Blue Bottle
Coffee, a California-based company that sells coffee to customers online and
has a number of shops in the US and Japan.

The company recently sold its US sweets and chocolate business, including
brands such as Crunch and Butterfinger, to Ferrero Group for 2.7bn Swiss
francs (£1.9bn)

Mr Schneider described the "global coffee alliance" with Starbucks as "a
great day for coffee lovers around the world".--BBC

UK-EU customs partnership 'still on table'

A new "customs partnership" with the EU - which is fiercely opposed by some
Tory Brexiteers - is still on the table, the business secretary says.

Greg Clark warned about the effect of border checks on manufacturing jobs,
saying whatever replaces the customs union was of "huge importance".

He added whichever option was chosen would "take some time" to put in place.

Eurosceptic backbencher Jacob Rees-Mogg criticised "Project Fear" warnings
about job losses after Brexit.

He said if the partnership model was adopted, "we would not in effect be
leaving the European Union".

But Mr Clark was supported by former home secretary Amber Rudd, while
Remain-supporting Tories criticised pro-Brexit "ideologues", saying they did
not represent the party at large.

Reality Check: The government's customs options

Why is the customs union so important?

May requests 'revised' customs proposals

All EU members are part of the customs union, within which there are no
internal tariffs (taxes) on goods transported between them. There is also a
common tariff agreed on goods entering from outside.

The UK government has said it is leaving the EU customs union so that it can
strike its own trade deals around the world, something it cannot do as a
member. But ministers have not yet agreed how to replace it.

The UK is under pressure to make progress on the issue before next month's
EU summit.

Speaking on the BBC's Andrew Marr Show, Mr Clark said the UK would leave the
customs union in 2019 with Brexit, and that finding the right replacement
was of "huge importance", pointing to the needs of manufacturers like Toyota
to avoid friction at the borders.

At last week's Brexit sub-committee meeting of senior ministers, several are
believed to have voiced concerns about one of the two options put forward by
the government - whereby Britain would collect tariffs on behalf of the EU
for goods destined for member states.

Mr Clark said the ministers had had "a much more professional, collegiate
discussion" than reports suggested.

And he said the partnership proposal had not been killed off, saying it
offered the "very important" feature of avoiding paperwork at UK-EU borders.

But he added that this model was "not perfect" because arrangements would be
needed to refund firms if they were only liable for lower UK rates.

He said this, and an alternative proposal of using technology and advanced
checks to minimise border disruption, needed "further work", and that
whichever was chosen, "it will take some time to have them put in place and
available".

The business secretary said it was "possible" this could take two or three
years after the UK leaves the EU, suggesting that different elements of the
plan could be implemented at different times.

Former home secretary Amber Rudd - who resigned last Sunday over a
deportations row - backed Mr Clark's comments.

Ms Rudd, a leading voice in the 2016 campaign to stay in the EU, tweeted
that the business secretary was "quite right" to argue for a "Brexit that
protects existing jobs and future investment".

Mrs May has been repeatedly urged by Brexiteers to abandon the partnership
option, which critics say would keep the UK tied to EU rules.

The Sunday Telegraph quoted a cabinet source saying it would be
"unimaginable for the prime minister to press on with the hybrid model after
it has been torn apart by members of her own Brexit committee".

Speaking on ITV's Peston on Sunday, influential backbench MP Jacob Rees-Mogg
- who has previously labelled the proposal "cretinous" - dismissed warnings
about the impact on jobs if it is rejected.

"This Project Fear has been so thoroughly discredited that you would have
thought it would have come to an end by now," he said.

"We will have control of goods coming into this country - we will set our
own laws, our own policies, our own regulations, and therefore we will
determine how efficient the border is coming into us."

The customs debate is central to the question of border between Northern
Ireland and the Republic, with supporters of a customs union saying anything
else will mean checks and a "hard border".

But Arlene Foster, who leads the Democratic Unionist Party, said a "free
flow" of trade did not require a customs union, adding that a border was
already in place between the two different jurisdictions.

However, some pro-EU Tories are still pushing for much closer economic ties
to the EU.

Asked about Mr Rees-Mogg and other Brexiteers, former education secretary
Nicky Morgan told Pienaar's Politics on BBC Radio 5 live people who "shout
loudest" did not necessarily represent the majority of Conservatives.

She said Tory rebels on her side of the debate would be prepared to defy the
party whip in key votes "in the national interest" but that the MPs who were
"sabre-rattling about leadership" were those who wanted "the hardest of hard
Brexits".

And ex-business minister Anna Soubry told The Sunday Politics Mrs May had to
"see off" those who operate a "party within a party" who do not represent
"the country at large".

"These are ideologues," she added.

The CBI welcomed Mr Clark's commitment to "frictionless" trade, saying the
customs union should remain in place "unless and until an alternative is
ready and workable".

Labour Brexit splits

Labour, meanwhile, faced criticism of its position on Brexit from pro-EU
voices in the party.

The leadership was accused of "complete cowardice" by Labour peer Lord Alli
for not supporting a Lords amendment aimed at keeping the UK within the
European Economic Area (EEA), like Norway, after Brexit.

EEA members get access to the single market - with free movement of people,
goods, service and money - without being EU members.

But shadow international trade secretary Barry Gardiner said such an
arrangement would reduce the UK to being a "rule taker" without a seat at
the table when decisions on regulations are made.

Labour says it would seek to draw up a new customs union with the EU after
Brexit, and would try to persuade Brussels to change the rules and allow it
to strike deals around the world.

Shadow chancellor John McDonnell told the Marr show that despite the
criticism, the party had not lost votes by not being "anti-Brexit" or
"trying to reverse the referendum".

"What people want is a traditional British compromise," he said.

"Respect the referendum result, but get the best deal you can to protect our
economy and protect our jobs."--BBC

Vanilla price rise proves chilling for ice-cream makers

The price of vanilla has soared over the last two years, sending a chill
down the spine of UK ice-cream makers.

At around $600 per kilo the sweet ingredient costs more than silver.

Snugburys Ice Cream is run by three sisters near Nantwich in Cheshire. The
business churns out around five tonnes of ice cream in a busy week from the
family farm.

Around a third of their 40 flavours contain vanilla in some form and they
are paying their supplier 30 times more for the extract than they did in
previous years.

"It has really gone up, so last year we decided to buy it forward by a
year's-worth," said Cleo Sadler, who manages the production side of the
business.

"We had to make a decision as to whether we would absorb the costs - which
we did in the end."

Buying ahead means the sisters have sufficient stock for the coming summer
and can stick to their prices.

But at least one other UK ice-cream business has stopped serving vanilla due
to the higher costs.

Julie Fisher, who founded artisanal ice-cream maker Ruby Violet seven years
ago, told the BBC vanilla was off the menu in her London-based outlets "for
the foreseeable future" because she can't afford the thousands of pounds it
would cost.

And others are reported to also be reconsidering their use of expensive
extract.

Snugbury's distributes all over the North West of England, but also runs a
popular shop on-site where a steady stream of families drop in on their way
across the countryside.

Ms Sadler and her sisters, Kitty and Hannah, pride themselves on homemade
ingredients, so would not consider synthetic alternatives to vanilla.

"As for the future, well we will have to sit down, crunch the figure, and
see how it's going to work out for us for the years to come," she said.

Why is vanilla price soaring?

The vast majority of vanilla - over 75% - is grown on the tropical island of
Madagascar, off the South East coast of the African Continent.

"The main reason for the high price is that there was a cyclone in
Madagascar last March which damaged a lot of the plantations," said Julian
Gale, a commodities analyst for IEG Vu.

"And despite hopes that the price would have eased by now, it's still
holding on the high side because demand is so strong."

It's a difficult spice to cultivate, extracted from the delicate vanilla
orchid flower. As a result, vanilla is the second most expensive spice in
the world, after saffron.

"The other big producers are Papua New Guinea, India and Uganda," said Mr
Gale.

"It's exported globally, a lot goes to America as it has a big ice cream
industry."

It's not just ice cream: vanilla is popular across sweet foods, alcohol, as
well as cosmetics and perfumes.

Natural vanilla extract comes in potent, sweet scented brown liquor. Food
manufacturers also purchase spent vanilla powder, the little black dots
sometimes seen in ice cream. The price of that has also increased threefold.

Synthetic flavouring called vanillin is extracted from wood and sometimes
even petroleum. It is anticipated it will now be more widely used across
industries trying to avoid escalating costs.--BBC

Car industry on alert over reports some hybrids face a ban

The UK's car industry has hit out at the government over unconfirmed reports
ministers will target hybrid vehicles as part of a new emissions crackdown.

New cars unable to do at least 50 miles on electric power may be banned by
2040, a ruling that would hit the UK's best-selling hybrid, Toyota's Prius.

The SMMT car trade body said "misleading" government messages were damaging
the industry and hitting jobs.

In a short statement, the Department for Transport denied plans for a ban.

The Financial Times and Autocar said that the government's Road to Zero car
emissions strategy was due to be unveiled imminently.

It follows last year's announcement by the government that it would ban the
sale of all new diesel and petrol cars in the UK by 2040. But the position
on electrified models was unclear, and Road to Zero is due to clarify the
situation.

The FT and Autocar reported that vehicles which could not travel at least 50
miles using only electric power would be outlawed.

Along with the bans on new petrol and diesel cars from 2040, that would
affect 98% of the vehicles currently on Britain's roads, including the
popular Prius, which like most plug-in hybrids on sale typically offer 30
miles of zero-emissions travel.

The Prius would no longer be classified as "environmentally friendly".

'Wreaking havoc'

Mike Hawes, chief executive of the Society of Motor Manufacturers and
Traders, said the industry was becoming increasingly concerned.

He criticised the lack of clarity over the government's plans.

"Unrealistic targets and misleading messaging on bans will only undermine
our efforts to realise this future, confusing consumers and wreaking havoc
on the new car market and the thousands of jobs it supports," Mr Hawes aid.

He said the industry shares the government's goal of zero emission transport
and was investing billions of pounds in new technologies and offering
greater consumer choice.

But he added: "We cannot support ambition levels which do not appreciate how
industry, the consumer or the market operate and which are based neither on
fact nor substance.

"Consumers need clear information about the right vehicles for their driving
needs and it is again disappointing for both industry and consumers that
vitally important information about government policy is being communicated
by leaks."

If the government really is planning to include hybrids as part of its 2040
ban on sales of petrol and diesel cars, it makes that policy much more
ambitious - and potentially much more of a headache for the industry.

By 2040, it is reasonable to assume that nearly all cars will be hybridised
in some way, because of ever tightening emissions legislation. That makes a
ban that only covers conventional, non-hybridised cars likely to be pretty
irrelevant.

But if the government stipulates that all cars must be able to travel at
least 50 miles on electric power, then a whole swathe of current machines
will be outlawed. Even the performance of most so-called plug-in hybrids,
which can already travel at least some distance on battery power, will not
be good enough.

That means a lot more investment will be needed, both to make cars more
efficient, and to beef up charging infrastructure. And car buyers will need
to be encouraged to buy the right vehicles.

The proposed ban might be 22 years away - but arguments over who pays for
what are likely to begin raging sooner rather than later.

A Department for Transport (DfT) spokesperson said: "It is categorically
untrue that government is planning to ban the sale of hybrid cars in the UK
by 2040."

The DfT added: "We do not comment on leaked draft documents. The Road to
Zero Strategy is yet to be finalised and has not been agreed by ministers."

But Autocar's editorial director Jim Holder accused the government of
failing to provide "any clarity of how it will support the ban" through
purchase incentives and the creation of a suitable charging infrastructure.

"By imposing a ban with so little detail or evidence of support car buyers
are likely to be confused once again," he told the Press Association.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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/20180507/f49083cc/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/20180507/f49083cc/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 338771 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180507/f49083cc/attachment-0001.png>
-------------- 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/20180507/f49083cc/attachment-0006.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/20180507/f49083cc/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29420 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180507/f49083cc/attachment-0008.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/20180507/f49083cc/attachment-0009.jpg>