Major International Business Headlines Brief::: 11 May 2018

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Major International Business Headlines Brief::: 11 May 2018

 


 

 


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*  South African Airways to get $400 million capital injection after plea
for cash: CEO

*  Ghana sells $2 bln Eurobonds at issuer-favoured yield: sources

*  South Africa's March manufacturing output down 1.3 percent yr/yr

*  Unilever Nigeria calls shareholder vote over sale of spreads business

*  Nigeria draft oil reforms seek to establish powerful industry regulator

*  South Africa rand to recoup some April losses in six months

*  Egypt signs MOU with China's GCL for $2 bln solar panel factory

*  De Beers tracks diamonds through supply chain using blockchain

*  Egypt's core inflation decreased to 13.1 pct in April from 13.3 pct in
March: CAPMAS

*  Interest rates on hold as Bank cuts growth outlook

*  Sainsbury's-Asda may 'have to sell at least 73 shops'

*  Rolls-Royce takes high road with new SUV

*  Tidal accused of manipulating Beyonce and Kanye West data

*  House of Fraser slumps to £44m loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

South African Airways to get $400 million capital injection after plea for
cash: CEO

JOHANNESBURG (Reuters) - South Africa has promised another 5 billion rand
($400 million) capital injection to help its struggling state airline meet
urgent financial obligations, the CEO of South African Airways (SAA) said on
Thursday.

 

SAA has not generated a profit since 2011 and has already received state
guarantees totalling nearly 20 billion rand. It needs the money to help pay
debts and prop up the business as it implements a turnaround plan.

 

The promise of more government cash comes after SAA Chief Executive Vuyani
Jarana told parliament in April that the firm needed the capital injection
“now”.

 

“Government has committed to inject another 5 billion rand into SAA. Part of
that 5 billion rand we will repay some of the creditors, suppliers, then the
balance will support us for working capital until around October/November,”
Jarana told Reuters in an interview.

 

The Treasury said it would follow its normal budgetary process, which
entails seeking cabinet approval.

 

“The outcome of this process is expected to be finalised in time for the
2018 MTBPS (Medium Term Budget Policy Statement),” the Treasury said.

 

The MTBPS is usually presented to parliament in October.

 

Jarana said that while waiting for the funds, the company would negotiate
for some breathing space with lenders.

 

 

“If Treasury needs a certain period of time to do this, lets say up to
September, between now and then, we are negotiating with lenders to give us
a bridging facility on the back of that commitment,” he said.

 

SAA is regularly cited by ratings agencies as a drain on the government
purse, but the Treasury is hopeful that new executive leadership led by
Jarana, a former executive at telecoms company Vodacom, would return the
airline to profitability.

 

The government has said that SAA needs an equity partner to pump money into
the company to address its liquidity crisis and to help with the
implementation of a turnaround plan.

 

The airline was looking at several measures to cut costs and Jurana said
reducing the current workforce of about 10,000 people was “inevitable”.

 

“Whether it’s pilots, cabin crew, administration, we are going to
rationalise the workforce. It’s an unavoidable thing. We have been talking
to trade unions about how we work together,” Jarana said.

 

“The first priority for me is job preservation, how do you find alternative
jobs for people as a starting point before you go into the hard issues of
retrenchments.”

 

Jarana said the company hopes to break even in three years time and “there
onwards, everything else equal, it will be able to start paying for its own
operations in terms of positive cash flows.”

 

($1 = 12.3823 rand)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Ghana sells $2 bln Eurobonds at issuer-favoured yield: sources

ACCRA (Reuters) - Ghana sold $2 billion worth of dual-tranche Eurobonds with
10- and 30-year maturities on Thursday and it will pay issuer-desired
yields, government and transaction sources said.

 

The West African sovereign sold $1 billion each of the 10-year notes
maturing in 2029 and a 30-year with 2049 maturity at 7.625 percent and 8.625
percent, respectively.

 

It set guidance for the May 2029 bond at 7.75 percent to 7.875 percent while
the May 2049 was in the 8.75 percent to 8.875 percent range. The notes were
first marketed in the low 8 percent area yield and low 9 percent mark.

 

Total books passed $5.5 billion, evenly split between the two tranches, lead
advisers said.

 

“It’s a marked success for Accra because they got a low yield and a bigger
size,” a sovereign debt market watcher told Reuters. “The pricing revision
may have aided the deal and left investors unhappy.”

 

It was Ghana’s sixth sale since a 2007 debut.

 

Lead advisers for the sale were Bank of America Merrill Lynch, Citigroup, JP
Morgan and Standard Chartered. Ghana is rated B3/B-/B

 

The government plans to use some of the proceeds to refinance debt and up to
$750 million as revenue for its 2018 budget.

 

Ghana, which exports cocoa, gold and oil, is in its final year of a $918
million IMF credit deal to narrow fiscal deficit, inflation and public debt
which hit 69 percent of gross domestic product in December.

 

The Thursday sale by Ghana followed similar big transactions by continental
peers Angola, Kenya and Nigeria.

 

 

South Africa's March manufacturing output down 1.3 percent yr/yr

JOHANNESBURG (Reuters) - South Africa’s manufacturing output contracted by
1.3 percent year-on-year in March following a revised 0.5 percent expansion
in February, the statistics agency said on Thursday.

 

Statistics South Africa said factory production on a month-on-month basis
increased 1.3 percent in March, but shrunk by 1.7 percent in the three
months to March versus the previous three months.

 

 

Unilever Nigeria calls shareholder vote over sale of spreads business

LAGOS (Reuters) - Unilever Nigeria plans to hold shareholder meeting on May
10 to vote on the proposed sale of its Blue Band margarine business, the
company said on Thursday.

 

The brand, made and distributed by Unilever Nigeria in the west African
country, is being sold by parent Unilever as part of the 6.8 billion euro
($8.1 billion) sale of its Flora Food Group spreads arm to private equity
firm KKR.

 

($1 = 0.8412 euros)

 

 

 

Nigeria draft oil reforms seek to establish powerful industry regulator

ABUJA (Reuters) - Nigeria’s government plans to create a powerful energy
regulator with broad oversight of the oil and gas sector, according to draft
versions of sweeping reforms known collectively as the Petroleum Industry
Bill (PIB).

 

The draft laws, posted on the Nigerian legislature’s website on April 30,
are the versions intended for the Senate, the upper house of parliament.

 

The PIB aims to improve transparency, attract investors, stimulate growth
and increase government revenues.

 

After being debated for well over a decade, the unwieldly and contentious
legislation was broken into sections to help it pass into law.

 

The governance part of the bill was passed by both houses of parliament in
January. However, that section has not yet been signed into law by President
Muhammadu Buhari, who is also Nigeria’s oil minister.

 

The inability to pass the law and uncertainty around taxation has stunted
investment in the west African nation, particularly in deep-water oil and
gas fields.

 

The three PIB sections yet to be passed address fiscal and administrative
issues and local communities affected by the oil industry.

 

On Tuesday, Senate President Bukola Saraki told Reuters Nigeria’s parliament
aims to pass the long-delayed PIB by the end of July.

 

The administrative bill largely deals with the scope of the Nigerian
Petroleum Regulatory Commission, which would be the main body regulating the
oil and gas sector in the country.

 

The commission would have the power to grant, amend and revoke licences for
all kinds of activity in the industry, from exploration and drilling to
distribution and sales. It would also make public all those licences,
permits and authorisations, as well as the details of interests or shares
held.

 

The bill sets the time limits for various kinds of licences: three years for
an exploration licence, 25 years for onshore petroleum licences and 30 years
for deep offshore.

 

The draft seeks to put an end to Nigeria’s subsidies for petroleum products,
with a “short transition towards full market pricing”, within a year of the
bill being signed into law.

 

“The President may direct the Commission to negotiate and award Petroleum
Licences to qualified investors outside of the bidding process,” the draft
also said.

 

The fiscal bill sets out the rates of tax and royalties for various oil and
gas enterprises, as well as various breaks such as upstream gas operations
receiving a tax-free period of five years from the start of production.

 

For profits from: Assessable tax (%)

 

Onshore crude 65

 

Shallow water crude 50

 

Onshore natural gas 30

 

Shallow water natural gas 30

 

Deep offshore upstream crude 40

 

Deep offshore upstream gas 30

 

Tranches of production Royalty rate

 

(barrels per day) (%)

 

Onshore areas:

 

First 2,500 2.5

 

Next 7,500 7.5

 

Next 10,000 15.0

 

Above 20,000 20.0

 

Shallow water areas:

 

First 10,000 5.0

 

Next 10,000 10.0

 

Next 10,000 15.0

 

Above 30,000 20.0

 

Deep water areas:

 

First 50,000 5.0

 

Next 50,000 7.5

 

Above 100,000 10.0

 

Additional tax will also be charged when crude prices exceed $60 a barrel,
the draft said.

 

The third draft section of the PIB addresses communities that host or are
affected by oil and gas sector work.

 

For decades, communities in the Niger Delta oil heartland have complained
that spills and pollution have destroyed their land and killed off wildlife.

 

RIghts group Amnesty International accused international oil majors Royal
Dutch Shell PLC and Eni SpA in March of negligence when addressing spills in
Nigeria.

 

Other oil majors such as Exxon Mobil Corp, Total SA and Chevron Corp also
operate in Nigeria.

 

The draft bill seeks to address some of those concerns by making companies
whose operations are in or near communities set up a trust, with a fund, for
the benefit of those people.

 

Failure to do so would result in the suspension of their licence, the draft
said.

 

Companies would have to contribute 2.5 percent of annual operating
expenditure for work in that area into the trust’s fund, which would then be
used to improve infrastructure, job creation, education and health
facilities.

 

 

 

South Africa rand to recoup some April losses in six months

JOHANNESBURG (Reuters) - South Africa’s rand will recoup some of its April
losses against the dollar in the next 12 months provided domestic growth
improves, a Reuters poll found on Thursday.

 

The rand is expected to recover to 12.23 per dollar in six months from 12.56
currently, about 3 percent firmer, but ease back to 12.50 per greenback in a
year, according to median forecasts in a survey of 38 strategists taken May
3-9.

 

But that won’t claw back its 5 percent losses clocked just last month.

 

The U.S. 10-year Treasury yield’s rise to 3 percent last month, driven on
fears that possibly even more U.S. Federal Reserve rate hikes are coming,
sent emerging market assets and currencies into a tailspin.

 

However, Emile Du Plessis of Finometrica said that as long as there is
adequate policy certainty and improved economic growth, portfolio inflows
into South Africa could pick up speed.

 

Emerging market currencies, including the rand, have been under pressure in
the past month from a strong dollar bolstered by the Fed decision to raise
rates in March and its apparent disposition to raise them at least three
more times this year.

 

But the rand is not likely to see deeper sell-offs like it has in previous
years, when it was considered part of the “fragile five” economies that
included Turkey, Brazil, India and Indonesia.

 

Indeed, the 1.7 percent loss so far this year in the rand is overshadowed by
Turkey’s lira and the Argentine peso, which both have lost more than a tenth
of their value since the start of 2018, topping the list of 20 emerging
markets’ weakest currencies tracked by Reuters for this period.

 

“I no longer see South Africa the same as Turkey or Argentina,” said
Christopher Shiells, emerging markets analyst at Informa Global Markets.

 

“Don’t get me wrong, South Africa still has structural issues (such as) a
current account deficit that relies on foreign portfolio flows to fund, and
this has driven rand weakness,” he said.

 

Still, South Africa’s current account gap has narrowed considerably to 2.9
percent of gross domestic product from a deficit of 6.9 percent five years
ago.

 

Annabel Bishop, chief economist at Investec, added that rate differentials
between emerging markets and developed countries still remain attractive and
so currencies could see further strength this year.

 

 

Egypt signs MOU with China's GCL for $2 bln solar panel factory

CAIRO (Reuters) - China’s GCL Group has signed a memorandum of understanding
(MOU) with Egypt’s ministry of military production to build a solar panel
facility at a cost of up to $2 billion, state-run newspaper Al-Ahram
reported on Thursday.

 

Under the MOU, which was signed on Wednesday, the facility will manufacture
panels capable of producing 5 gigawatts (GW) annually, it said, without
mentioning the location or timeframe of the project.

 

Egypt in 2014 announced extensive plans to develop renewable energy
targeting 4.3 GW of wind and solar projects to be installed over three
years, but many investors pulled out following contract disputes.

 

Egypt aims to meet 20 percent of its energy needs from renewable sources by
2022.

 

President Abdel Fattah al-Sisi, a former general who took office in 2014,
has promised to revive the economy, which has struggled since a 2011
uprising scared away investors and tourists, Egypt’s main sources of foreign
currency.

 

He has called in the military to assist in major infrastructure projects and
with distribution of subsidised commodities to help curb price rises.

 

The economic weight of the military, which produces everything from bottled
water to macaroni, has long been a topic of speculation in Egypt but
official comment on its economic activities is rare.

 

Sisi said in March that the military’s economic activities were equivalent
to 2-3 percent of GDP, well below the more than 50 percent that some have
claimed.

 

 

De Beers tracks diamonds through supply chain using blockchain

LONDON (Reuters) - Anglo American’s De Beers said on Thursday it had tracked
100 high-value diamonds from miner to retailer using blockchain, in the
first effort of its kind to clear the supply chain of imposters and conflict
minerals.

 

De Beers, the world’s biggest diamond producer by the value of its gems, has
led industry efforts to verify the authenticity of diamonds and ensure they
are not from conflict zones where gems may be used to finance violence.

 

“An immutable and secure digital trail was created for a selection of rough
diamonds mined by De Beers as they moved from the mine to cutter and
polisher, then through to a jeweller,” De Beers said in a statement.

 

Five diamond manufacturers worked with De Beers to develop the blockchain
platform called Tracr, which will be launched and made available to the rest
of the industry at the end of the year, the company said.

 

The manufacturers involved in the pilot were Diacore, Diarough, KGK Group,
Rosy Blue NV and Venus Jewel.

 

The pilot was announced in January and had an initial focus on larger
stones. Blockchain is a shared database of transactions maintained by a
network of computers on the internet that is best known as the system
underpinning bitcoin.

 

“The Tracr project team has demonstrated that it can successfully track a
diamond through the value chain, providing asset-traceability assurance in a
way that was not possible before,” De Beers chief executive Bruce Cleaver
said.

 

 

Egypt's core inflation decreased to 13.1 pct in April from 13.3 pct in
March: CAPMAS

CAIRO (Reuters) - Egypt’s annual urban consumer price inflation decreased to
13.1 percent in April from 13.3 percent in March, the official statistics
agency CAPMAS said on Thursday.

 

Inflation jumped after Egypt devalued its currency in November 2016. It
reached a record high in July on the back of energy subsidy cuts but has
gradually eased since then.

 

 

 

Interest rates on hold as Bank cuts growth outlook

The Bank of England said the UK economy has hit a "temporary soft patch" as
it kept interest rates on hold at 0.5%.

 

The Bank cut its growth forecast for the year to 1.4%, down from the
forecast of 1.8% made in February.

 

The Bank says that cut is almost entirely due to the disruption to the
economy caused by bad weather in March.

 

However, Bank governor Mark Carney said in an interview with BBC economics
editor Kamal Ahmed that "it's likely" rates will rise this year.

 

In a press conference after the rates decision was announced, Mr Carney said
the "underlying pace of growth remains more resilient than the headline data
suggests".

 

As recently as February economists were expecting the Bank to raise interest
rates this month.

 

That view changed after figures released last month showed that the economy
grew by just 0.1% in the first three months of the year.

 

The slowdown was caused by the Beast from the East - severe weather which
shut down construction sites, kept shoppers at home and caused transport
chaos.

 

However, the Bank described that as a "temporary soft patch" with "few
implications" for the outlook for the economy.

 

The financial markets are now indicating there will be an interest rate
increase towards the end of the year followed by another in 2019, and a
further one in 2020.

 

*         Live reaction to the Bank's decision

*         What would a rate rise mean for me?

*         UK economy in weakest growth since 2012

*         UK inflation falls to lowest in a year

Movements in the Bank's official rates can have big effects on UK
households. A rise would mean that about four million households with
variable or tracker rate mortgages would see an increase in their monthly
payments, while an increase would benefit the nation's 45 million savers.

 

Mr Carney sets interest rates with a team of eight other experts that form
the Monetary Policy Committee (MPC).

 

At the latest meeting, seven members voted to keep interest rates on hold
and two, Ian McCafferty and Michael Saunders, voted for an increase.

 

"It looks like the 2018 rate hike has been delayed not cancelled," Fitch
Ratings chief economist Brian Coulton said.

 

However, former MPC member Andrew Sentance said the Bank had "totally
misunderstood" the economic slowdown. He said persistent low interest rates
and uncertainty over their future direction were undermining the pound and
hurting consumers by causing inflation.

 

Is Mr Carney revealing once again his "unreliable boyfriend" tendencies,
promising that interest rate rises are just around the corner, only to pull
back?

 

He might suggest that he and the other eight members of the MPC are less the
unreliable partners, more the "sensitive" listeners.

 

Sensitive to changes in the data which effect a decision based on fine
margins and delicate judgements.

 

It was John Maynard Keynes who said that when the facts changed, so, sir,
did he.

 

Today the Bank has changed tone. Let's wait and see, it is saying.

 

Let's wait and see how the economy develops until we give any firm guidance
on the path of interest rates beyond the Bank's often used formulation of
some limited rises "over the forecast period" of the next three years.

 

Yes, they will rise at some point. But the chances of that happening sooner
rather than later has receded.

 

Read Kamal's blog in full

 

The minutes from the meeting show the MPC wants to wait and see how the
economy performs over the coming months.

 

While they expect it to recover from a weak start to the year, there is a
risk that the slowdown could be more persistent.

 

Rate rise?

The Office for National Statistics appears to be more pessimistic than the
Bank of England.

 

The ONS released data today showing that industrial production expanded just
0.1% in March from February. It said the economy was "sluggish" in the first
quarter, but said the bad weather had "little impact overall", suggesting it
thinks the economy has underlying problems.

 

Later on Thursday, in an interview with the BBC's economics editor, Mr
Carney said: "It's likely over the course of the next year rates will go
up... that's the most likely thing to happen."

 

But any rate rises would be at a "gentle pace", the governor said. He added
that there could be shocks to the UK economy from protectionist trade
policies or from Brexit, in which case: "If the economy slows... then we
will adjust policy."

 

The course of interest rates depends on inflation falling in line with the
Bank's expectations.

 

In March, inflation was running at an annual rate of 2.5%, which is above
the Bank's target of 2%.

 

 

But in its most recent Quarterly Inflation Report, the Bank blames
above-target inflation on higher prices of imported goods caused by a weaker
pound.

 

The Bank expects that effect to fade over the coming years, bringing
inflation back to 2% by early 2021.

 

It also forecast that the unemployment rate would fall further, to 4% by
2020, the Bank's lowest forecast since the financial crisis.--BBC

 

 

 

Sainsbury's-Asda may 'have to sell at least 73 shops'

At least 73 supermarkets will have to be sold in order for Sainsbury's
proposed merger with Asda to be given the go-ahead, according to new
research.

 

And it's in the south-east and the north-west of England where stores are
most under threat.

 

The new supermarket group would become the largest in the UK by market
share.

 

The £15bn deal is set to face huge scrutiny by the Competition and Markets
Authority (CMA). regulator.

 

It's the CMA's job to prevent companies becoming too dominant and harmful to
consumers.

 

If the CMA approves this merger, then many expect both chains to have to
give up a number of stores.

 

Sainsbury's vows Asda deal will cut prices

 

Sainsbury's-Asda deal in nine charts

 

Suppliers fear Sainsbury's price squeeze

 

However, divining how the Competition and Markets Authority will vet this
controversial mega-merger is no straightforward task.

 

"There hasn't been a retail deal like this in more than a decade," says
David Haywood, founder of Maximise UK, which is an expert in identifying the
best locations for stores.

 

He reckons at least 6% or 73 of the combined group's supermarkets are at
risk, a figure that excludes convenience stores.

 

Mr Haywood worked on the last big retail merger - the takeover of Safeway by
Morrisons in 2004.

 

The market looks very different today, with the rise of the discounters and
the ability to buy groceries online.

 

So how will the CMA view this blockbuster merger?

 

Key question

 

"The real focus will be on how Sainsbury's and Asda's main supermarkets
operate at a local level and how they overlap. The CMA will be concerned
about whether the deal reduces the number of competing brands within a 10 or
15 minute drive time," says Mr Haywood.

 

One of the key questions is what weight the CMA gives to Aldi and Lidl,
which have grabbed more than 12% of the grocery market and are continuing to
open lots of stores.

 

Maximise UK's calculations do include Aldi and Lidl as effective competitor
brands.

 

But it says if the CMA takes a more conservative view and excludes the
discounters, then the number of potential store disposals leaps to 245, a
number that would weaken the financial merits of the tie-up.

 

The CMA has included Aldi and Lidl in a number of previous cases, although
they've been given a lower "weighting" in some investigations because they
didn't stock all of the products of their competitors.

 

Sainsbury's is confident that the regulators will take a more sophisticated
approach this time round reflecting the changes in how and where people
shop.

 

It also believes there are aren't as many overlaps as critics may think
because its stores are mainly in the South East while Asda is a major player
in the North.

 

And both chains will no doubt be emboldened by the recent CMA decision to
approve the takeover of the wholesaler, Booker, by Tesco.

 

Sainsbury's chief executive, Mike Coupe, has insisted there won't be any
store closures as a result of the merger, and that any stores that needed to
be off-loaded would be sold as trading entities.

 

But who would take that space?

 

"For me this is the real issue regarding these overlapping catchment areas,"
says Mr Haywood.

 

"Considering that 66% of the stores caught in the overlap analysis have
selling areas over 20,000 sq ft, the key issue is who can actually acquire
store locations of this size. They're typically too big for an Aldi or a
Lidl."

 

One thing's for sure - there won't be a conclusion to the CMA's expected
investigation anytime soon. It could take a year, a long time for thousands
of workers who may be feeling vulnerable about the future of their stores
and jobs.--BBC

 

 

Rolls-Royce takes high road with new SUV

Rolls-Royce has become the latest luxury car maker to launch an SUV.

 

Chief executive Torsten Müller-Ötvös said the new Cullinan, which will cost
more than £200,000, was a "seminal" moment and probably the "most
anticipated" Rolls-Royce ever.

 

Bentley and Lamborghini have already launched SUVs, while Ferrari will
follow next year.

 

Automotive analysts said Rolls, which is owned by BMW, had to follow suit to
keep up with changing consumer demand.

 

The launch of the Cullinan, named after the world's biggest diamond that is
part of the Crown Jewels, marks a shift away from the luxury saloon cars
that Rolls-Royce is best known for.

 

Mr Torsten Müller-Ötvös told the BBC its target group had changed
significantly over the past decade.

 

"What we see is ultra-high net worth individuals - people who can afford a
Rolls-Royce - are getting younger and younger," he said.

 

"You see people who want to drive themselves, It's quite an old cliche that
Rolls-Royce is chauffeur-only."

 

The new clientele want a car that "fits to go to the opera, which brings you
up to the chalet in the Swiss Alps and so on", he added.

 

Motor industry analyst Arndt Ellinghorst of Evercore ISI said SUVs had
already replaced the majority of top-end limousines because they offered a
more comfortable seating position and better road view.

 

"If you drive an 'ordinary luxury car' you look like a chauffeur; in a
luxury SUV you're still the king".

 

He said there was "no reason" why Rolls-Royce should not enter this very
profitable segment of the market.

 

"Tradition is one thing but Rolls-Royce also needs to address contemporary
changes in demand. The brand has a great opportunity to move from
3,000-4,000 units a year to 5,000-6,000 without sacrificing its extreme
luxury appeal," Mr Ellinghorst added.

 

"They will most certainly succeed. BMW has the technology that Roll-Royce
can leverage into a benchmark super luxury SUV."

 

Analysis: Theo Leggett, BBC business correspondent

It may not be pretty, but Rolls Royce is hoping the new Cullinan will catch
the eye of buyers in its most important markets.

 

In China in particular, sales of sports utility vehicles are soaring - and
the company wants a piece of the action.

 

It might seem like a strange road for Rolls to go down. It is best known for
its more traditional luxury saloons, after all. But its rivals are doing the
same kind of thing.

 

Bentley already has its gargantuan Bentayga SUV on the market; there's also
the Lamborghini Urus. Aston Martin is working on one, as is Ferrari.

 

All of them have realised that what many super-rich people want to buy is
neither a sportscar nor a luxury sedan. They want an SUV.

 

So the Cullinan may not exactly exude old world charm, but it could well
prove popular among a brash new breed of customers.--BBC

 

 

Tidal accused of manipulating Beyonce and Kanye West data

Tidal denies having manipulated the audience logs of Beyonce and Kanye West
albums released in 2016

Music streaming app Tidal has been accused of inflating audience figures for
two albums - Lemonade by Beyonce, and The Life of Pablo by Kanye West.

 

A Norwegian-language newspaper claims the move would have led Tidal to have
paid disproportionate royalties to the singers' record companies at the
expense of other artists.

 

Tidal is part-owned by Jay Z. He is Beyonce's husband and a long-term friend
of Kanye West.

 

Tidal has denied the allegations.

 

"This is a smear campaign from a publication that once referred to our
employee [chief operating officer Lior Tibon] as an 'Israeli intelligence
officer' and our owner as a 'crack dealer'," it said in a statement.

 

"We expect nothing less from them than this ridiculous story, lies and
falsehoods.

 

"The information was stolen and manipulated. And we will fight these claims
vigorously."

 

The newspaper, Dagens Naeringsliv (DN), reported it had no information to
suggest that Beyonce or Kanye West would have known their listening numbers
had been faked.

 

Nor does it present any evidence that Jay Z himself would have been aware of
the figures being altered.

 

But the paper's editor-in-chief said it stood by the claims that had been
published.

 

"We have since February tried to get comments from Tidal to our
well-documented story," said Amund Djuve.

 

"They have not been willing to answer detailed questions about the
manipulated data.

 

"Tidal let the company's American lawyers answer. And their response was
that the data were stolen and manipulated by us. This is of course not
true."

 

'Not a bug'

Tidal had the exclusive streaming rights to both the albums in question when
they first launched.

 

DN claims to have obtained royalty reports that show Tidal paid Sony Music
$2.5m (£1.8m) in April and May 2016 for its members' listens to Lemonade's
tracks.

 

And it says that the Malmo, Sweden-based company paid 2m euros ($3.0m;
£2.2m) to Universal Music in February and March the same year to cover its
users playing songs from The Life of Pablo.

 

DN claims to have obtained a hard drive containing further "extensive data"
from an unnamed source that indicates these sums were excessive.

 

To support its claim, the paper enrolled the help of researchers at the
Norwegian University of Science and Technology, who have published their own
report.

 

Their analysis indicates that more than 320 million false play records had
been logged for the two albums, affecting more than 1.7 million user
accounts.

 

"Due to the targeted nature and extent of the manipulation, it is very
unlikely that this manipulation was solely the result of a code-based bug or
other anomalies," their study said.

 

A spokesman for the university added: "Our researchers have used advanced
statistical analysis methods to reach this conclusion. However we cannot,
based on the data provided to us, determine the source of the manipulation."

 

DN also reported that it had identified and tracked down several Tidal users
from the logs.

 

It said they had disputed listening to the two albums' songs as frequently
as the records indicated and in some cases had evidence they would not
having been using the app at the registered times.

 

Despite Tidal's denials, one trade body has already voiced concerns.

 

"If this is true, many record labels and artists have lost out," the
Independent Music Labels Association (Impala) tweeted.--BBC

 

 

House of Fraser slumps to £44m loss

Department store group House of Fraser lost almost £44m in 2017 as sales
fell.

 

The department store's potential new Chinese owner, C.Banner, said the loss
of £43.9m reversed a pre-tax profit of £1.5m for the previous year, while
sales fell 6.3% to £787.8m.

 

It blamed Brexit, terror attacks and online for damaging the performance of
the group, which owns 59 UK stores.

 

The Chinese group has agreed to take a 51% stake in House of Fraser if the
chain pushes through a turnaround plan.

 

The extent of the chain's financial problems were revealed in a document
submitted by C.Banner to the Hong Kong Stock Exchange, announcing its
proposal to acquire the stake in House of Fraser.

 

It pointed out that the annual loss figure for the House of Fraser group
included the start-up and operating costs of House of Fraser China, but
excluded the licence fee payable from the Chinese business to House of
Fraser UK for the use of the name in that market.

 

Separate figures for the UK business have yet to be reported.

 

However, the document said: "The Brexit referendum and the UK's resultant
decision to leave the European Union and the terrorist attack in London,
combined with a rapidly evolving retail market, produced a period of
uncertainty and volatility that resulted in a difficult trading environment
for the whole retail industry in the UK."

 

Six reasons behind the High Street crisis

Six shops defying High Street downturn

However, C.Banner said House of Fraser would become "more stable" after
completing its restructuring plan and "take advantage of its well-known
brand to capture growth potential".

 

Earlier this month, C.Banner said it would take a controlling stake in the
retailer from another Chinese firm, Nanjing Cenbest, but only if House of
Fraser agreed a Company Voluntary Arrangement (CVA) with its creditors.

 

The chain expects to make a formal CVA proposal next month, with a full
restructuring in place by early 2019.

 

Store closures are planned and the chain wants to renegotiate rents on
others.

 

A CVA is designed to help a struggling company to pay back a proportion of
its debts over time.

 

It involves a strict repayment scheme overseen by an insolvency practitioner
and must be approved by at least three quarters of the firm's
creditors.--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.

 


 

 


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