Major International Business Headlines Brief::: 08 May 2018

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Major International Business Headlines Brief::: 08 May 2018

 


 

 


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*  Zimbabwe miner looking at refinery upgrade for battery grade lithium

*  AngloGold maintains production guidance, in talks with Tanzania

*  Seychelles inflation slows to 4.18 percent in April

*  South African farmers take AB InBev to competition watchdog

*  Kenyan shilling stable against the dollar, expected to ease

*  Kenya's fiscal deficit seen dropping to 5.7 pct of GDP in 2018/19

*  Ethiopian Airlines to step up expansion with more deals and jets

*  Sudan in talks with Saudi Arabia for five-year oil aid agreement
-minister

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

*  South African rand weakens as dollar strength bites

*  Walmart expected to announce deal to buy India's Flipkart

*  RBS boss to face MPs over branch closures

*  Nestle pays Starbucks $7.1bn to sell its coffee

*  Wet wipes could face wipe-out in plastic clean-up

*  Tax on pensioners proposed to heal inter-generational divide

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Zimbabwe miner looking at refinery upgrade for battery grade lithium

HARARE (Reuters) - A Zimbabwean mining company is considering upgrading a
local nickel refinery to produce battery grade lithium or alternatively
build a new lithium carbonate plant at a cost of up to $150 million, its
managing director said on Monday.

 

Lithium is in demand globally as a battery metal needed for the shift to
electric vehicles and renewable power and Zimbabwe has said it has the
potential to supply 20 percent of the world’s lithium.

 

Zimbabwe is one of the top 10 lithium producers but currently produces only
a fraction of the worldwide total.

 

John McTaggart, Kamativi Tailings Company managing director, told parliament
his company is negotiating with Zimbabwean-listed miner RioZim to upgrade
its Empress Nickel Refinery, which is 120 km (75 miles) west of the capital
so it can produce lithium carbonate.

 

But if this failed, Kamativi could look at setting up a lithium carbonate
plant in Zimbabwe at a cost of $100-$150 million, McTaggart said.

 

Kamativi is a 60-40 percent venture between privately-owned Jimbala and
state mining firm Zimbabwe Mining Development Corporation that is processing
a tailings dump in western Zimbabwe.

 

The tailings dump accumulated between 1936 and 1994 during the mining and
processing of tin-bearing minerals.

 

“We believe we have the volume of concentrate in-country to warrant a
lithium carbonate plant. Africa certainly needs one with the electric
vehicle revolution that’s taking place,” said McTaggart.

 

McTaggart would not provide more details when later contacted for comment by
Reuters.

 

McTaggart said a concentrator that will produce up to 19,000 tonnes of
concentrate of lithium-bearing spodumene should be completed by December at
a cost of $25 million.

 

Canadian-listed Chimata Cold Corp has a right to buy into Kamativi if it
raises the money, McTaggart said.

 

Zimbabwe Mines Minister Winston Chitando said in February the southern
African nation would generate revenue of $1.4 billion over eight years from
the Kamativi lithium project. McTaggart, however, said the figure was purely
speculative.

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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AngloGold maintains production guidance, in talks with Tanzania

JOHANNESBURG (Reuters) - AngloGold Ashanti remains on track to meet its
production targets for 2018 and is in talks with the Tanzanian government
regarding policy moves to boost government stakes in mining assets and tax
hikes, it said on Tuesday.

 

Tanzania, Africa’s fourth-largest gold producer, is seeking to reap more
profits from its vast mineral resources by overhauling the fiscal and
regulatory regime of its mining sector but the moves have alarmed companies
and investors.

 

“AngloGold Ashanti has ... sought constructive dialogue with the government
of Tanzania, which has indicated its willingness to engage. The parties will
work toward a mutually agreeable time for those discussions to take place,”
the company said in a quarterly market update.

 

Under new regulations the mining ministry passed in January, Tanzania will
now make it compulsory for foreign-owned mining groups to offer shares to
the government and local companies.

 

Chief Executive Srinivasan Venkatakrishnan, known as Venkat, told a media
conference call that AngloGold was also having problems getting VAT refunds
from the Tanzanian government which he said was “locking up close to $3 to
$4 million a month.”

 

He also said the company was affected by a 2 percent hike in royalties and a
1 percent increase in levies, which had lifted costs on its Geita mine
there.

 

Geita’s cash costs rose 31 percent to $892 an ounce in the March quarter
from the same period last year, underscoring the scale of the additional
burden on the company.

 

The company said it is on track to meet its annual production forecast of
between 3.325 and 3.450 million ounces for 2018 after producing 824,000
ounces in the quarter to the end of March, down slightly from 830,000 ounces
in the same period last year.

 

Full financial results are done every six months.

 

 

Seychelles inflation slows to 4.18 percent in April

VICTORIA (Reuters) - Seychelles year-on-year inflation slowed to 4.18
percent in April from 4.66 percent the previous month, the statistics office
said on Tuesday.

 

 

South African farmers take AB InBev to competition watchdog

JOHANNESBURG (Reuters) - Farmers in South Africa have filed a complaint with
the country’s competition watchdog about Anheuser-Busch InBev’s decision to
change its pricing formula for buying malt barley, a key ingredient in beer
making.

 

The farmers lobby group Grain South Africa believes AB InBev, the world’s
biggest brewer, has contravened one of the conditions set when the country’s
competition tribunal approved its $106 billion acquisition of rival beer
maker SABMiller.

 

“We are aware of the complaint lodged by Grain SA and have formally
responded to the Competition Commission,” AB InBev Africa spokeswoman Robyn
Chalmers said. “We have, at all times, conducted our operations in
compliance with the conditions imposed by the Competition Tribunal.”

 

In a letter to farmers in the barley growing region of Western Cape
province, AB InBev said it was changing what it will pay for the 2018 crop
to 97 percent of the price for top grade wheat (B1) from 102 percent of
second tier wheat (B2).

 

“We are of the opinion that they are not sticking to what was agreed at the
Tribunal,” said Jannie de Villiers, chief executive of Grain SA. “AB InBev
has refused to engage any further. The Competition Commission is the only
avenue we can use. As the biggest buyer of barley, this a competition
issue.”

 

In the final approval here for AB InBev's acquisition, South Africa's
competition tribunal said the merged entity had to comply with the terms and
conditions of SABMiller's existing supply agreements with suppliers.

 

ANNUAL REVIEW

Farmers also worry the new formula will leave them worse off. On May 7, B1
wheat cost 3,910 rand ($311) a tonne and B2 cost 3,814 rand, taking into
account a fixed discount of 96 rand per tonne this season. That would mean
the price of barley would be about 100 rand a tonne lower under the new
formula.

 

AB InBev said in its letter dated Nov. 8, seen by Reuters, that the new
formula ensured the average gross margin for malting barley was competitive
versus wheat in all South African growing regions.

 

It said would review the crop pricing formula and the amount of barley it
would buy in South Africa on an annual basis.

 

“We believe AB InBev is in contravention of one of the conditions set by
Competition Tribunal when they approved the merger with SAB,” said one
farmer, who declined to be named.

 

AB InBev, which sells local brands such as Castle Lager in South Africa as
well as pricier international brands including Budweiser and Corona, buys 85
to 90 percent of the malted barley grown in the country.

 

The Competition Commission investigates cases before deciding whether to
refer them to the Tribunal for adjudication.

 

The Commission’s spokesman Sipho Ngwema confirmed the farmers had written to
the watchdog complaining about AB InBev’s new pricing formula.

 

“We are interacting with Grain SA about this issue. No decision has made
about the merits of the complaint. That’s all I can tell you at the moment,”
Ngwema said.

 

SELF-SUFFICIENT

 

The pricing formula AB InBev wants to change was set by SABMiller in 2009.
Previously, the barley price was set each year but farmers found it
difficult to plan production and mitigate risk. So in 2009, barley prices
were tied to the price of wheat futures on the Johannesburg Stock Exchange
(JSE).

 

As part of the merger approval, AB InBev has agreed to increase the amount
of barley it buys in South Africa to 475,000 tonnes from the 415,000 it
hopes to get in 2018.

 

The brewer said that meant the industry would have to increase production in
drier regions and the new pricing formula rebalanced the competitive
position of barley versus wheat in all growing regions.

 

South African farmers are expected to have harvested about 300,000 tonnes of
barley in 2017. When there have been shortfalls, South Africa has imported
barley from countries such as Australia and Canada.

 

“Our goal is to ensure that beyond 2021, South Africa remains
self-sufficient in malting barley production through establishing a
competitive, robust and thriving local malting barley industry,” AB InBev
said in the letter.

 

With operations in more 20 countries and output of more than 600 million
hectolitres, AB InBev is among the world’s biggest buyers of barley.

 

($1 = 12.5794 rand)

 

 

 

Kenyan shilling stable against the dollar, expected to ease

NAIROBI (Reuters) - The Kenyan shilling was stable against the dollar on
Monday but was expected to ease due to demand from multinational companies
buying dollars to repatriate dividends, traders said.

 

At 0848 GMT, commercial banks quoted the shilling at 100.25/35 per dollar,
unchanged from Friday’s close.

 

 

Kenya's fiscal deficit seen dropping to 5.7 pct of GDP in 2018/19

NAIROBI (Reuters) - Kenya’s budget deficit is expected to drop to 5.7
percent of GDP in the 2018/19 (July-June) fiscal year from 7.2 percent this
fiscal year, estimates sent to parliament by the Treasury showed on Monday.

 

The East African nation has been under pressure from the International
Monetary Fund and other bodies to cut its budget deficit, which peaked at
9.1 percent of economic output in 2016/17.

 

“This reduction will strengthen our debt sustainability position. We have
carefully evaluated our external and domestic debt to ensure that we are in
a position to service the same,” the Treasury said in the estimates.

 

It said the budget, which will be formally presented in mid-June, would set
a net external financing target of 282.5 billion shillings ($2.82 billion),
equivalent to 2.9 percent of GDP.

 

Local borrowing would amount to 276.1 billion shillings or 2.8 percent of
GDP, and the government’s revenue would rise to 19.6 percent of GDP from
19.2 percent this financial year, the Treasury added.

 

($1 = 100.1500 Kenyan shillings)

 

 

Ethiopian Airlines to step up expansion with more deals and jets

ADDIS ABABA (Reuters) - Even by its own standards, Ethiopian Airlines’
recent growth has been fast — so fast that it revised the ambitious 15-year
strategy set in 2010 and plans to buy more planes to step up its expansion.

 

Its plan had been to more than double its fleet to 120 and become Africa’s
biggest airline by 2025, but it already has 100 planes flying to dozens of
destinations from Asia to South America, including four U.S. cities.

 

The state-owned carrier has also outpaced regional competitors Kenya Airways
and South African Airways to become Africa’s largest airline by revenue and
profit, according to the International Air Transport Association.

 

“We have expanded more than we planned,” said Chief Executive Tewolde
Gebremariam. “We had to revise the objective to make it 150 airplanes or
more by 2025.”

 

It now plans to place orders this year for 13 additional Boeing 787 jets and
six more Airbus A350s, he told Reuters.

 

The airline has come a long way from when it was established in 1945 as a
joint venture with now-defunct U.S. carrier Trans World Airlines (TWA).

 

In its 2016/17 financial year Ethiopian Airlines generated $2.7 billion in
revenue, Tewolde said, up more than 11 percent from the previous year.
Passenger numbers climbed by more than 18 percent to 9 million while net
profit was $233 million, up from a little more than $220 million.

 

DEAL-HUNGRY

 

In 2013 Ethiopian Airlines acquired a minority stake in Malawi Airlines to
serve as a base for its southern Africa operations.

 

That kicked off a series of deals including January’s agreement with
Zambia’s government to relaunch that country’s national carrier, shut down
more than two decades ago. [L8N1PB36C]

 

The strategy is aimed at gaining a “competitive advantage” against rivals
such as those in the Gulf, Tewolde said.

 

With Africa’s aviation industry still hampered by government protectionism
and high taxes, Tewolde said that setting up or taking stakes in small
carriers is a way around the restrictions.

 

Ethiopian Airlines aims to create a new airline in Mozambique that it will
fully own, he said, adding that it is also in talks with Chad, Djibouti,
Equatorial Guinea and Guinea to set up carriers through joint ventures.

 

“Going forward, it will be difficult for us to compete with only one hub in
Addis Ababa.”

 

But it isn’t all clear skies for the fast-growing carrier.

 

The economic downturn in Africa caused by the collapse of oil prices in 2014
has indirectly hit the continent’s airlines, and Ethiopian is unable to
repatriate more than $145 million in profits from Angola, Sudan and Zimbabwe
because of foreign exchange shortages, Tewolde said.

 

“Running a business needs cash flow,” he said. “Here in Africa, we have a
huge problem with this.”

 

($1 = 27.2465 birr)

 

 

Sudan in talks with Saudi Arabia for five-year oil aid agreement -minister

KHARTOUM (Reuters) - Sudan is in talks with Saudi Arabia for an oil aid
agreement that would have the kingdom supply its oil needs for five years on
credit, Sudan Oil Minister Abdulrahman Othman said on Monday.

 

Othman said the deal would provide about 1.8 million tonnes of oil per year
to Sudan, which has been hit in recent months by fuel shortages that have
forced people to queue at gas stations for hours. [nL3N1S15R6]

 

A source in the presidency’s office in Sudan said the final agreement is
expected to be signed within days.

 

 

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 African rand weakens as dollar strength bites

JOHANNESBURG (Reuters) - South Africa’s rand weakened against the dollar in
early trade on Monday as the greenback stayed near its 2018 peak after U.S.
jobs and wages data did little to temper perceptions of strength in the U.S.
economy.

 

At 0645 GMT, the rand traded at 12.5700 per dollar, 0.48 percent weaker than
its close on Friday.

 

The rand was amongst the worst performing emerging market currencies in
April and has remained weak in May with the dollar, lifted by rising U.S.
Treasury yields, climbing to its highest levels this year against a basket
of currencies.

 

“The US dollar strength observed since the beginning of May is testing
emerging market resilience. South Africa and Turkey are both vulnerable due
to high financing needs,” Rand Merchant Bank analyst Isaah Mhlanga wrote in
a note.

 

He added: “We expect trade tensions and Nafta (US, Mexico and Canada) trade
talks to negatively impact the rand, therefore we do not expect meaningful
gains this week.”

 

Stocks were set to open higher at 0700 GMT, with the JSE securities
exchange’s Top-40 futures index up 0.23 percent.

 

In fixed income, the yield for the benchmark government bond due in 2026
fell 1.5 basis points to 8.33 percent, reflecting firmer bond prices.

 

 

 

Walmart expected to announce deal to buy India's Flipkart

Walmart is expected to announce that it is buying a majority stake in Indian
e-commerce firm Flipkart later this week, despite reports that rival Amazon
tried to disrupt the transaction.

 

The US grocery giant has agreed the purchase of 75% of Flipkart for about
$15bn (£11bn), according to numerous media reports.

 

The two firms first held talks in 2016.

 

Amazon, Flipkart's chief rival in India's fast-growing online retail sector,
is also said to have bid.

 

Flipkart, which was founded in 2007, claims over 100 million registered
users and says it facilitates more than 8 million shipments each month.

 

The firm has already attracted some high profile investors including
Microsoft, Tencent and Softbank, despite posting losses.

 

A combination with Walmart could be controversial, however. Some groups in
India have already voiced concerns about how a deal might affect smaller
retailers, the Times of India and others have reported.

 

Why is Walmart interested?

India is seen as the next major frontier for online shopping, with the
e-commerce market projected to grow by nearly a third this year to about
$50bn, by some estimates.

 

Walmart has declined to comment on reports that the Flipkart deal is set to
go ahead, but the grocery giant has been looking to expand in India for
years. The firm is also flush with savings from a new US tax cut.

 

"China and India certainly have the opportunity to be very big growth
markets for us, when you figure more than a third of the world's population
lives in those two countries. Those can continue to be big opportunities for
us in the future," Brett Biggs, the firm's head of investor relations, said
at a conference in March.

 

The US firm currently operates 21 wholesale shops in India, but has run up
against government rules about foreign ownership in the retail sector. An
earlier joint venture ended in 2013.

 

Flipkart, which started in 2007, claims over 100 million registered users
and says it facilitates more than 8 million shipments each month.

How would the deal fit into Walmart's strategy?

Walmart is putting resources into fighting a tough battle against its online
competitors, not least Amazon.

 

It purchased US e-commerce firm Jet.com and has announced partnerships with
firms such as Google and China's JD.com.

 

Distancing itself from the notion that it is purely focused on physical
outlets, the company formally dropped the word "stores" from its name last
year, and later said it would close about 10% of its Sam's Club discount
stores.

 

In the UK, the firm recently announced plans to merge Asda, which it
purchased in 1999, with Sainsbury's. It is also reportedly looking to sell
part of its Brazilian operations.

 

All this leaves its hands free to grapple more effectively with Amazon.

 

Did Amazon try to muscle in on the deal?

Amazon reportedly made its own offer for a majority share of Flipkart, as
talks with Walmart reached an advanced stage.

 

Indian business channel CNBC-TV18 said Amazon had offered to buy about 60%
of Flipkart, in a bid that was was "likely to be on par" with Walmart's.

 

Amazon had already been focusing on expanding in India, and in 2016
committed to invest more than $5bn. However, analysts said a deal with
Flipkart would have raised competition concerns and voiced scepticism about
the likelihood of a late-in-the-day bidding war.

 

What's in it for Flipkart?

Flipkart's founders and many investors reportedly favour the tie-up with
Walmart, which provides a way for current backers to sell their holdings.

 

A major round of investment last year valued Flipkart at about $11.6bn;
Walmart's offer, if press reports are accurate, values the firm at about
$20bn.

 

Walmart also brings to the combination experience in areas such as
groceries, said Satish Meena, senior forecast analyst at Forrester.

 

He said: "For Flipkart, this deal is more than just money ....With Amazon
closing the gap in categories other than fashion, Flipkart needs Walmart to
remain competitive in the long term."--BBC

 

 

RBS boss to face MPs over branch closures

The boss of the Royal Bank of Scotland is due to appear before MPs to
explain why the bank plans to close scores of branches across Scotland.

 

RBS chief executive Ross McEwan will give evidence to the Scottish Affairs
Committee at Westminster.

 

It has taken lengthy negotiations for the appearance to be confirmed.

 

The session will focus on the decision made by the bank to close 62
branches, and the announcement of a partial reprieve for 10 of those.

 

Committee member Deidre Brock said the bank "still has plenty of questions
to answer" about the planned closures.

 

The SNP MP also said more details were needed on plans for the 10 branches
reprieved after a campaign by the SNP and community leaders.

 

In advance of the committee hearing, she said: "The bank is owned by the
taxpayer and the chief executive needs to shed light on the decision-making
process that is leaving so many communities across Scotland without physical
banking services.

 

"We need details on the branches that have been saved from the axe after a
hard campaign by local communities and the SNP."

 

The MP said the branches that have been saved "are still under threat" and
added: "We need to know what basis they are being judged on, what will give
these communities the peace of mind that they'll still have a bank.

 

"We also need to find out why the chance to save branches is limited to just
10 locations, we already know that branch closures won't save money so what
is the thinking behind closing them?"

 

She said the banks are "hugely important to communities across Scotland,
people and businesses depend on them to help keep local economies running."

 

"The UK Tory government cannot continue to dismiss their concerns and look
the other way while the taxpayer-owned RBS wilfully damages the interests of
its shareholders - the taxpayers in these communities," she added.

 

She added: "The SNP will continue to try to save these banks, it is time
that the other parties joined us in that campaign and put pressure on the UK
government to work in Scotland's interests to force this public company to
respect the communities that are in danger of being abandoned."

 

Despite criticism that it could leave some communities without any banking
facilities, Mr McEwan has defended the plans, saying the moves were in
response to customer choices and also said mobile banks could play a greater
role.

 

RBS is not the only bank to close branches in Scotland, but its plans are
the most high profile.

 

On Monday, disability and rural campaigners questioned if the closure plans
breached equalities legislation.

 

Scottish Rural Action and Disability Equality Scotland have joined Scottish
government minister Jeane Freeman to seek clarity on the legal status of the
bank's plans to close branches across Scotland.

 

The campaigners have written to the Equality and Human Rights Commission to
ask if the proposals would be in breach of the Equalities Act 2010.--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 products.

 

The Swiss giant, which boasts Nescafe and Nespresso amongst its brands, will
have the right to market Starbucks' coffee in retail outlets outside the
cafe chain.

 

That part of the business currently generates $2bn in annual sales.

 

The deal means Nespresso machine owners will be able to buy Starbucks coffee
branded pods for use at home.

 

Consumers will also find Starbucks coffee beans, ground and instant coffee
more readily available as Nestle, the world's largest food and drinks
company, uses its vast distribution network to market Starbucks products
worldwide.

 

Nestle's name will not appear alongside Starbucks's, but the deal could
still help Nestle strengthen its US business, thanks to the powerful High
Street coffee brand.

 

Boil it all down and this is a giant licensing arrangement, whereby Nestle
is allowed to sell Starbucks products through Nestle distribution channels.

 

That means you'll see a lot more Starbucks branded coffee pods for use in
Nespresso or Dolce Gusto devices which are all the rage - thanks in part to
those George Clooney adverts.

 

Starbucks will continue to buy the raw (green) coffee beans from farmers but
now Nestle will step in and roast and prepare those beans for consumers
under strict Starbucks licensing rules. Nestle will not acquire any
Starbucks infrastructure nor will any Nestle products appear in Starbucks
coffee shops.

 

For that arrangement, Nestle is paying $7bn because it believes Starbucks
products will appeal to premium coffee lovers around the world.

 

Despite the price tag, Nestle shareholders appear to like the deal. Nestle
shares rose 1.5% today. While Starbucks investors kind of shrugged.

 

Mark 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.

 

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.

 

Kona Haque, of the commodities trading company ED&F Man said Nestle was
aiming to further strengthen its position in the US market through this
latest deal.

 

"At the moment Nestle is very much known for its instant coffee. This is an
opportunity to go into roast and ground which for today's millennials is a
big growing trend," she said.

 

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

 

Nestle said 500 Starbucks employees will transfer over to its business but
they will continue to be located in Seattle, which has been the group's
headquarters for the last 47 years.

 

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).--BBC

 

 

Wet wipes could face wipe-out in plastic clean-up

Wet wipes, used for sticky fingers and removing eye make-up, as well as on
other parts of the anatomy, could themselves be wiped out over the next
couple of decades.

 

The government says its plan to eliminate plastic waste "includes single use
products like wet wipes".

 

The wipes contain non-biodegradable plastic.

 

So manufacturers will either have to develop plastic-free wipes or consumers
will have to go without.

 

Wet wipes are behind 93% of blockages in UK sewers, a key element of the
infamous giant obstacles known as fatbergs, according to Water UK, the trade
body representing all of the main water and sewerage companies in the
country.

 

That has prompted the government and industry to focus on persuading
consumers not to flush them into the waste water system.

 

"We are continuing to work with manufacturers and retailers of wet wipes to
make sure labelling on packaging is clear and people know how to dispose of
them properly," a spokesperson for the Department of the Environment (Defra)
said.

 

However, Defra says it is also "encouraging innovation so that more and more
of these products can be recycled and are working with industry to support
the development of alternatives, such as a wet-wipe product that does not
contain plastic and can therefore be flushed".

 

The wet-wipe industry has flourished over the last decade with manufacturers
offering an ever broader range of wipes, for sensitive skin, babies'
bottoms, removing make-up, applying insect repellent, deodorant or
sunscreen. However most are made of polyester and other non-biodegradable
materials.

 

Defra is in the process of exploring how changes to the tax system or
charges could be used to reduce the amount of single-use plastics wasted.

 

Prime Minister Theresa May pledged in January to eradicate all "avoidable
plastic waste" by 2042.

 

The government has also said it will consult over whether or not to ban
plastic straws, cotton buds and drink stirrers.--BBC

 

 

Tax on pensioners proposed to heal inter-generational divide

A £10,000 payment should be given to the young and pensioners taxed more, a
new report into inter-generational fairness in the UK suggests.

 

The research and policy organisation, the Resolution Foundation, says these
radical moves are needed to better fund the NHS and maintain social
cohesion.

 

Its chairman, Lord Willetts, said the contract between young and old had
"broken down".

 

Without action, young people would become "increasingly angry", he said.

 

The Resolution Foundation says its goal is to improve outcomes for people on
low and modest incomes.

 

Lord Willetts, the former universities minister under David Cameron, argued
that young people were being locked out of the housing market and older
people were worried about the demands of healthcare.

 

Lord Willetts was speaking as the Resolution Foundation, which he heads,
published a report calling for tax changes to help heal the growing economic
tensions between the generations.

 

Windfall for young

The foundation's Intergenerational Commission report calls for an NHS "levy"
of £2.3bn paid for by increased national insurance contributions by those
over the age of 65.

 

It says that all young people should receive a £10,000 windfall at the age
of 25 to help pay for a deposit on a home, start a business or improve their
education or skills.

 

The report proposes that this money be raised by abolishing inheritance tax
and replacing it with a lifetime limit for recipients of £125,000 before
taxes kick in.

 

The commission estimates this would raise £5bn.

 

"We've got a very serious problem of ensuring there's a fair deal across the
generations," Lord Willetts told me.

 

"Older people are worried about a properly funded healthcare system, people
in middle age still haven't been able to buy their own home, and for younger
people their pay is no better than it was 10 or 15 years ago.

 

"So the different generations in the UK all face different pressures.

 

"But we can tackle them, we can do something about it."

 

The report calls for the scrapping of the council tax system, replacing it
with a new property tax which would raise more money from wealthier
homeowners.

 

The proceeds would be used to halve stamp duty for first-time buyers.

 

The cross-party commission, which included input from the heads of the CBI
business lobby group and the Trades Union Congress, also demands more secure
tenancies for renters.

 

Millennials - people born between 1981 and 2000 - are half as likely as baby
boomers - born between 1946 and 1965 - to own their own home by 30.

 

Lord Willetts said that a lot of the problems had been created by political
inertia by a series of governments.

 

'Broken down'

"I think we still care about it," Lord Willetts said.

 

"We still feel the obligations that generations have to each other, and
families are incredibly important in discharging those obligations.

 

"But when you look at public policy, sadly when it comes to a properly
funded healthcare system, houses available so that people can achieve their
goal of owner-occupation and a fair deal in pay for younger people - in all
those ways, that contract between the generations has not been maintained.

 

"That contract has broken down. Families are doing their best, the bank of
mum and dad helping out the kids, younger people caring about their
grandparents, but when you look at public policy, there are older people
worried about their social care, there are people of middle age who still
aren't owner-occupiers, and that's what they want to be, and there are
younger people whose pay is no higher than it was 10 or 15 years ago, so
there's a problem in public policy."

 

New research produced by the Resolution Foundation revealed that young
people are earning less today than the generation before them was earning at
the same age.

 

It showed that home ownership levels are far lower.

 

And a poll undertaken for the Intergenerational Commission also suggested
people were more pessimistic in Britain about the chances of the next
generation having "better lives" than the one before it - compared with
almost any other country.

 

I asked Lord Willetts whether any government would have the stomach for
increasing taxes on pensioners, for example, given that Theresa May was
unable to push through a tax increase for the self-employed last year
because of a public and Parliamentary backlash.

 

"There's no avoiding the pressures for more spending on healthcare and
social care, the question is how we meet those pressures," he replied.

 

"Extra borrowing is unfair on the younger generation.

 

"Extra taxes on the working population - when especially younger workers
have not really seen any increase in their pay - will be very unfair.

 

"It so happens that the older people who will benefit most from extra
spending on health care have got some resources, so at low rates, it's
reasonable to expect them to contribute.

 

"It is better than any of the alternatives."

 

Read more from Kamal Ahmed here

 

Private contributions

The foundation also suggests that wealthier people should contribute
privately to a social insurance system to help pay for social care in older
age.

 

The system would mirror elements of compulsory health insurance policies in
Germany.

 

"We do think that there needs to be some element of private payment into
social care costs when people can afford it," Lord Willetts said.

 

"But we're absolutely clear there should be a limit on those contributions,
so that people don't face a very large bill that could wipe out their
wealth.

 

"There should be an upper limit on it, and everybody should expect some
contribution from the state.

 

"We want everything to be fair and affordable."--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
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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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