Major International Business Headlines Brief::: 22 May 2018

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Major International Business Headlines Brief::: 22 May 2018

 


 

 


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

 


 

 


 

 

*  Beer maker AB InBev pumps up the volume in Africa

*  ATON raises stake in South African target Murray & Roberts to 40 pct

*  South Africa's rand firmer as dollar bulls take a breath

*  Moroccan telecom group Inwi's case against Maroc Telecom postponed to
July 2

*  Production vessel at Ghana's Jubilee oilfield to shut temporarily

*  Angola cuts tax rates for development of marginal oil fields

*  Ghana central bank cuts policy rate to 17 pct

*  Drought, armyworms cut Malawi maize crop by 19 pct - minister

*  Nigeria's economic growth slows for first time since end of recession

*  South African rand falls to new 5-month low vs dollar

*  Qatar charges against Barclays dismissed

*  Sony takes controlling stake in EMI Music Publishing

*  US vows 'strongest sanctions in history' on Iran

*  Shares jump on report China could scrap birth limits

*  Comcast boosted in battle for Sky

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Beer maker AB InBev pumps up the volume in Africa

JOHANNESBURG/BRUSSELS/LONDON (Reuters) - Sitting outside the ramshackle
Vimba Tavern in Johannesburg’s Alexandra township, Patrick Mashego swigs
from a one-litre bottle of Carling Black Label, South Africa’s most popular
beer.

 

Rolled out by AB InBev across the country this year, the larger bottles are
part of a plan by the world’s biggest brewer to lure price-conscious South
Africans to its mid-market beers and away from bargain rivals or home brews.

 

AB InBev’s move marks a departure from its typical playbook of increasing
margins and profits principally through higher prices and rigorous cost
control, tactics honed through its close association with private equity
firm 3G Capital.

 

It is also the clearest sign yet of how AB InBev aims to conquer the rest of
Africa after getting a major foothold on the continent by buying its biggest
global rival SABMiller in 2016.

 

On a continent where the average person drinks 10 litres of beer a year -
compared with 75 litres in the United States and 66 litres in Brazil -
establishing its premium brands and selling high volumes of mid-tier beers
will be key, as will breaking into countries dominated by other brewers.

 

“Clearly there’s room for making our products more present. That’s
definitely a big part of our efforts here,” said Ricardo Tadeu, AB InBev’s
Africa zone president. “In comparison to where we have been, these markets
are still being developed.”

 

AB InBev is trying to protect and expand its mid-tier brands with the help
of discounting and promotions as they will be its workhorses during the time
it takes its premium international lagers Budweiser, Stella Artois and
Corona to gain market share.

 

But because AB InBev already has a range of premium beers for the high end
of the South African market, it is also freer than SABMiller to push brands
such as Carling and Castle deeper into the mainstream market.

 

At the Vimba Tavern, Mashego, 33, who spends most of his day scouting for
recyclable rubbish to make a living, seems sold on AB InBev’s strategy. At
19 rand ($1.54) for a one-litre bottle, Mashego is paying about 20 percent
more than for 750 ml bottles but gets a third more beer.

 

“This is all I drink now,” said Mashego, sitting next to a friend also
swigging beer from a one-litre bottle.

 

‘IT’S A STEAL’

SABMiller’s African presence was considered the main prize in AB InBev’s
$107 billion acquisition of the world’s second biggest brewer - given the
potential for growth on the continent as beer sales in other regions
stagnate.

 

Bernstein analysts estimate the African beer market was worth $10.8 billion
of net revenue in 2016, or 7 percent of the global total, and they see it as
the world’s most attractive region for long-term volume and profit growth.

 

When AB InBev bought SABMiller, it cited forecasts that beer sales in Africa
would grow by nearly three times the global rate between 2014 and 2025.
About a fifth of the industry’s revenue in Africa, and a quarter of the
profits, come from South Africa.

 

As part of its new strategy, AB InBev is reinforcing its volume play with
more frequent discounting for Carling and another local favourite, Castle,
retailers say.

 

At the Zio liquor store in Sasolburg, 80 km (50 miles) south of
Johannesburg, shoppers pushed trolleys laden with Castle on promotion last
month for Freedom Day celebrations to mark South Africa’s first
post-apartheid elections in April 1994.

 

“It’s a steal,” said one shopper in the mining town as he picked up an
18-pack next to a sign saying: “Buy 12 and get 6 extra free.”

 

Even though AB InBev controls more than three-quarters of the South African
market, according to Euromonitor International, liquor store owners say
promotions have become more common than under SABMiller.

 

“We used to get them once every quarter, now it’s more like one a month,”
said one of five Johannesburg liquor store owners to tell Reuters they had
seen a jump since AB InBev took over.

 

Promotions were most intense towards the end of 2017, another liquor store
owner said.

 

“There were deals almost on a weekly basis ... crazy stuff,” said the trader
in Vanderbijlpark near Sasolburg, adding that AB InBev appeared to be in
“full-on war” with its closest rival Heineken in the run-up to Christmas.

 

The Dutch beer maker, which controls 7 percent of South Africa’s beer
market, has been gaining market share since last year, mainly through its
Heineken lager which is a favourite among the country’s elite.

 

But it has been driving into the mainstream sector too with Soweto Gold,
which it launched late last year, as well a greater push for its more
established Tafel brand. It is also rolling out different bottle sizes.

 

“Both AB InBev and Heineken are pursuing an ambitious growth agenda. With
that comes quite intensive promotional activity,” said Heineken’s South
Africa chief Ruud van den Eijnden.

 

“What you see is increasingly brewers use specific packs to do promotions.”

 

JUMBO BOTTLES AND MULTI-PACKS

 

UBS analyst Nik Oliver said AB InBev generally puts more emphasis on value
than SABMiller did. That means it is more likely to initiate price rises
across its beer range that can absorb promotions or discounts on specific
products.

 

“Of course we discount and promote when it makes sense,” said AB InBev’s
Tadeu, a 41-year-old Brazilian who has been with the company since 1995.
“But the truth of the matter is we never undermine net revenue per
hectolitre growth.”

 

While AB InBev does not publish the scale of its price rises, revenue per
hectolitre of beer sold after duties rose 5 percent in South Africa last
year, in line with inflation.

 

In the three months to March 30, revenue per hectolitre rose at a “high
single digit” rate from a year earlier, AB InBev said. The company as a
whole targets revenue per hectolitre growth above inflation and cost rises
below inflation.

 

Oliver from UBS said the bigger bottles were also a good way to drive sales
in the near term with new drinkers who would probably help push up margins
further in the long run.

 

“It gets (price sensitive consumers) into a brand, and then the view is that
those people over time will probably also buy the smaller size, so work up
that price ladder over time.”

 

For Tadeu, the plan AB InBev has adopted in South Africa - varied bottle
sizes and packs coupled with regular discounting, as well as the promotion
of its premium beers - can serve as a blueprint for the rest of the
continent.

 

“One thing we noticed is that in Africa, in many of our markets, we still
depended too much on one pack,” said Tadeu.

 

After introducing one-litre bottles in South Africa, Tadeu said other
African markets should expect to see new variations.

 

“It’s very good to have different packs,” Tadeu said. “Because you then
always have something attractive for consumers in terms of promotions.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

 

ATON raises stake in South African target Murray & Roberts to 40 pct

JOHANNESBURG (Reuters) - German investment house ATON has raised its stake
in South African builder Murray & Roberts to nearly 40 percent, it said on
Tuesday.

 

ATON, which already held about a third of the stock, is in the middle of a
$400 million takeover bid for the rest of Murray & Roberts.

 

 

 

South Africa's rand firmer as dollar bulls take a breath

JOHANNESBURG (Reuters) - South Africa’s rand was firmer on Tuesday, swinging
back from a five-month low as investors pocketed profits from the recent
rise in the dollar and braced for local interest rate and credit rating
decisions due later in the week.

 

At 0645 GMT the rand was 0.39 percent firmer at 12.6300 per dollar compared
to Monday’s low of 12.8950, its weakest level since December.

 

“The dollar is overbought and a correction phase is imminent in our
opinion,” said analysts at Nedbank in a note.

 

The greenback retreated from five-month highs and U.S. Treasuries also
softened from seven-year highs, allowing some reprieve for emerging market
currencies which have been battered by the surge in U.S. assets.

 

South Africa’s central bank announces its decision on lending rates on
Thursday while ratings firms Fitch and Standard & Poor’s are set to take
ratings action on Friday.

 

The Reserve Bank (SARB) is expected to keep interest rates unchanged at 6.5
percent at Thursday’s meeting, by all 25 economists surveyed by Reuters last
week.

 

Bonds were also firmer with the yield on the benchmark paper due in 2026
down 5.5 basis points to 8.62 percent.

 

Stocks were due to open lower when trade commences at 0700 GMT, with the
JSE’s Top-40 futures index down 0.34 percent.

 

 

 

Moroccan telecom group Inwi's case against Maroc Telecom postponed to July 2

Rabat (Reuters) - A lawsuit brought by Moroccan telecoms company Inwi
against the country’s market leader, Maroc Telecom, due to start on Monday
was postponed to July 2, a lawyer told Reuters on Monday.

 

“The case was postponed to enable the lawyers to prepare their defence,”
Abdellatif Ouahbi, Inwi’s lawyer said.

 

Inwi is suing Maroc Telecom for 5 billion dirhams over non-compliance with
regulatory provisions relating to fair competition, Ouahbi said.

 

The amount is close to the 5.7 billion dirhams net income posted by Maroc
Telecom in 2017.

 

No one from Maroc Telecom was immediately available for comment.

 

Inwi, held by Wana Corporate, filed the lawsuit at Rabat’s commercial
tribunal in March alleging that Maroc Telecom broke competition law by
holding more than 40 percent of the market. Maroc Telecom is required by a
law adopted in 2007 to open its telecoms infrastructure to other operators.

 

In September 2016, Moroccan telecoms regulator ANRT addressed a notice to
Maroc Telecom calling it to abide by the regulations governing local-loop
unbundling.

 

According to ANRT’s most recent figures up to December 2017, Maroc Telecom
held 42.1 percent of the country’s mobile market against 23 percent for its
competitor Inwi.

 

Maroc Telecom held 84 percent of the fixed line telephone market against
12.6 percent for Inwi, and nearly 48.9 percent of the internet market
against Inwi’s 23.5 percent share, according to the ANRT data.

 

Maroc Telecom, listed on both the Casablanca Stock Exchange and Euronext
Paris, is 53 percent controlled by the UAE’s Etisalat with the Moroccan
state owning 30 percent of the company.

 

Inwi is 69 percent owned by a holding company controlled by the Moroccan
royal family. Kuwait’s Zain and Kuwaiti Investment Authority’s Al Ajial
Investments bought 15.5 percent each in a joint deal for 31 percent of the
operator in 2009.

 

 

Production vessel at Ghana's Jubilee oilfield to shut temporarily

ACCRA (Reuters) - The production vessel at Tullow’s flagship Jubilee
oilfield off Ghana’s west coast will shut down next week for 21 days while
it undergoes repairs, the country’s power utilities said on Monday.

 

The planned shutdown next Monday of the Kwame Nkrumah production vessel,
which currently produces both oil and gas, will result in a cut to offshore
gas supply, the companies said in a statement.

 

They said any loss of power generation would be offset by generating
additional power from the eastern port of Tema area.

 

Tullow did not immediately respond to a request for comment.

 

The company originally identified damage to a turret bearing on the vessel
in 2016 and has said it would need to shut down the vessel to fix it.

 

The West African country began oil production in late 2010 and currently
produces around 180,000 barrels per day mainly from three main fields.
Jubilee, which produces about 100,000 barrels of oil a day, also produces
most of Ghana’s gas for power generation.

 

Tullow controls over a third of the Jubilee field, whose other investors
include Kosmos Energy, Anadarko, Ghana National Petroleum Corporation and
Patro SA.

 

 

Angola cuts tax rates for development of marginal oil fields

LUANDA (Reuters) - Angola has halved headline tax rates for marginal oil
fields as part of a series of laws to drive investment and reverse declining
output in Africa’s second largest crude producer.

 

The series of presidential decrees, published in the Official Gazette on
Friday and made available by the oil ministry on Monday, outlines new
legislation for the development of marginal fields, the creation of a
regulator for fuel products and natural gas rights.

 

Angola previously did not have any specific legislation covering the
exploration and production of natural gas.

 

Angolan oil production is set to decline 36 percent by 2023, according to
government data. President Joao Lourenco is scrambling to rekindle
investment in a sector that accounts for 95 percent of the country’s
exports.

 

For marginal fields, which the law defines as a discovery with reserves of
less than 300 million barrels, petroleum production tax was cut to 10
percent from the usual 20 percent, while petroleum income tax was reduced to
25 percent from 50 percent.

 

A separate decree published at the same time called for a flexible approach
to concession boundaries, with reserves that spread beyond the original
limits being rolled into current blocks as long as they did not cross into
an area already under contract.

 

New gas legislation gives oil companies a specific legislative framework to
explore, develop and sell natural gas for the first time in Angola.

 

It outlined a tax regime on predominantly gas fields of 5 percent on
production and 25 percent on income.

 

The series of decrees created a new body to regulate the oil derivatives
market, including the import and distribution of fuels.

 

The body known as the Regulatory Institute for Oil Derivatives (IRDP) will
be based in the capital Luanda and its head will be chosen by the minister
for oil and mines.

 

 

Ghana central bank cuts policy rate to 17 pct

ACCRA (Reuters) - Ghana’s central bank cut its benchmark interest rate by
100 basis points to 17 percent on Monday, saying it was on track to meet its
medium-term inflation target as the economy stabilised.

 

Ghana is in its final year of a $918 million credit deal with the
International Monetary Fund to narrow its deficit and reduce debt and
inflation and has now lowered the rate by 850 basis points over the past
year.

 

Speaking in the capital Accra, Central Bank Governor Ernest Addison
projected that inflation would fall to the bank’s target of eight percent by
the end of this year or early 2019.

 

 

“There is evidence to show that some stabilisation and consolidation,
especially with inflation and exchange rates expectations, are taking hold,”
he told reporters.

 

Annual inflation fell to 9.6 percent in April from 10.4 percent the month
before.

 

The West African country’s public debt declined from 69.8 of gross domestic
product at the end of 2017 to 60 percent at the end of February, Addison
said.

 

 

Drought, armyworms cut Malawi maize crop by 19 pct - minister

LILONGWE (Reuters) - Malawi’s maize output declined by 19.4 percent in the
2017/18 farming year to 2.8 million tons due to damage caused by drought and
crop-eating armyworms, Agriculture Minister Joseph Mwanamvekha said on
Monday.

 

“This (decline) is because of dry spells experienced in some parts of the
country and the armyworm invasion,” Mwanamvekha told Reuters.

 

Malawi produced 3.5 million tons of maize in the 2016/17 season but banned
exports of its staple crop earlier this year and said it was considering
restocking its national grain reserves.

 

Armyworms are a pest from Latin America that first threatened African crops
late in 2016, while drought is a perennial threat to the impoverished
southern African country.

 

Mwanamvekha said it was too early to predict 2018/19 agricultural output but
there could be significant reductions in the yields of most of Malawi’s
major food crops, which include cassava, groundnuts and sorghum.

 

Malawi relies heavily on rain-fed agriculture, and most of its maize is
grown on small plots by subsistence farmers.

 

 

Nigeria's economic growth slows for first time since end of recession

ABUJA (Reuters) - Nigeria’s economic growth slowed in the first quarter of
2018 for the first time since the country pulled out of recession last year
as the non-oil sector struggled, the National Bureau of Statistics said on
Monday.

 

The economy grew by 1.95 percent in the first quarter lifted by the oil
sector. That was a slight dip from 2.11 percent year-on-year in the final
quarter of 2017. The economy shrank 0.91 percent in the first quarter of
2017, the bureau said.

 

Growth rates had been bouncing back since the third quarter of 2016, when
the recession, its first in 25 years, bottomed out. Nigeria exited that
contraction last year largely due to higher oil prices, with the country
relying on crude sales for around two-thirds of government revenue.

 

Last week parliament passed a record 9.12 trillion naira ($29.8 billion)
budget for 2018 aimed at boosting growth in west Africa’s biggest economy
nine months before the country’s next presidential election.

 

President Muhammadu Buhari has been trying to diversify the economy away
from oil by boosting the non-oil sector but those efforts are struggling.

 

The oil sector grew 14.77 percent in the period, higher than the non-oil
sector which rose 0.76 percent between January to March, the NBS said. Oil
production stood at 2 million barrels per day in the quarter, up from 1.95
million in the previous quarter.

 

The GDP data comes a day before the central bank announces its decision on
interest rates, with recent economic data showing that there’s scope for a
rate cut as inflation dropped to a more than two year low in April of 12.48
percent.

 

The bank has kept its rate at 14 percent since July 2016 to support the
naira and curb inflation.

 

 

South African rand falls to new 5-month low vs dollar

JOHANNESBURG (Reuters) - South Africa’s rand tumbled to a new five-month low
against the dollar early on Monday as the greenback rose amid hopes for an
easing of trade tensions between the United States and China.

 

At 0640 GMT, the rand traded at 12.8825 per dollar, 0.72 percent weaker than
its close on Friday, and trading at its firmest levels since Dec. 18.

 

U.S. Treasury Secretary Steven Mnuchin said on Sunday that the U.S. trade
war with China is “on hold” after the world’s largest economies agreed to
drop their tariff threats while they work on a wider trade agreement.

 

On the local front, a focus for markets this week is Wednesday’s consumer
price inflation data, central bank interest rates decision on Thursday and
S&P Global Ratings review on Friday.

 

In fixed income, the yield for the benchmark government bond due in 2026
rose 8 basis points to 8.705 percent, reflecting weaker bond prices.

 

 

 

 

Qatar charges against Barclays dismissed

The Crown Court has dismissed charges against Barclays Bank and its owner
Barclays PLC over billions of pounds raised from Qatar in 2008.

 

The charges were potentially extremely serious for Barclays as, if it had
been found guilty, it could have lost its banking licence.

 

Barclays said the Serious Fraud Office was likely to try to reinstate the
charges by applying to the High Court.

 

Four former Barclays bankers still face charges over the Qatari investment.

 

In 2008, to avoid a government bailout, Barclays took a £12bn loan from
Qatar Holdings, which is owned by the state of Qatar.

 

Under that deal Barclays loaned £2.3bn back to Qatar Holdings.

 

The SFO alleged that loan was used either directly, or indirectly, to buy
shares in Barclays, which the SFO said was "unlawful financial assistance".

 

They were the first charges to be faced by a British bank in relation to its
conduct during the financial crisis.

 

Former chief executive John Varley, former senior investment banker Roger
Jenkins, Thomas Kalaris, a former chief executive of Barclays' wealth
division, and Richard Boath, the ex-European head of financial institutions,
were all charged by the Serious Fraud Office (SFO) in relation to the Qatari
deal.

 

Their trial is scheduled to start next year.

 

Charges of fraud are a serious matter for a bank as a conviction can carry
hefty financial and operational penalties - such as losing licences to
operate in important overseas markets.

 

So today's instruction by a crown court judge to dismiss criminal charges
against Barclays PLC and its operating subsidiary Barclays Bank is clearly
good news for the bank.

 

The SFO has the right to appeal this decision and is expected to do so.
Barclays stressed that the decision to dismiss charges against the bank
would not affect criminal proceedings against four former executives -
including former CEO John Varley - whose trial is expected to start in early
2019.

 

In 2013 Barclays was fined £50 million by the city watchdog in relation to
the same Qatar fundraising. Barclays disputed the findings of the FCA at the
time but that conversation was put on hold pending the criminal case against
the bank which was thrown out today.--BBC

 

 

Sony takes controlling stake in EMI Music Publishing

Sony is buying a controlling stake in EMI Music Publishing, giving it
control over two million songs by artists from Queen and Carole King to
Alicia Keys and Pharrell Williams.

 

The $2.3bn (£1.7bn) deal will make Sony the world's biggest music publisher.

 

Sony's publishing business already includes 2.3 million tracks, including
the Beatles catalogue.

 

Sony chief executive Kenichiro Yoshida said streaming services had led to a
"resurgence" in the music business.

 

"We are thrilled to bring EMI Music Publishing into the Sony family and
maintain our number one position in the music publishing industry," he said.

 

"In the entertainment space, we are focusing on building a strong IP
[intellectual property] portfolio, and I believe this acquisition will be a
particularly significant milestone for our long-term growth."

 

Sony is raising its stake in EMI Music Publishing from 30% to 90% by buying
the stake held by Mubadala Investment Company.

 

Sony's purchase of EMI Music Publishing is the biggest move so far by Mr
Yoshida, who took over the reins from former chief executive Kazuo Hirai
earlier this year.

 

Mr Yoshida and Mr Hirai were together instrumental in reviving Sony's
fortunes by selling its struggling PC business and launching the successful
PlayStation 4 games console.

 

Sony also unveiled its business strategy and financial targets for the next
three years on Tuesday.

 

The Japanese giant said it would continue to focus on electronics,
entertainment and financial services.

 

The hardware business - which includes home entertainment products, mobile
communications and imaging and camera products - is expected to generate the
most cash in the coming years.

 

In April, Sony reported net profit of 380bn yen for last year, a seven-fold
increase on 2016.

 

Almost all of its divisions saw an improved performance, but sales in the
PlayStation unit jumped almost 300%.--BBC

 

 

US vows 'strongest sanctions in history' on Iran

Secretary of State Mike Pompeo has said the US is imposing the "strongest
sanctions in history" on Iran.

 

In a speech in Washington, America's top diplomat said Iran would be
"battling to keep its economy alive" after the sanctions took effect.

 

His Iranian counterpart said the US was a prisoner of its "failed policies"
and would suffer the consequences.

 

Earlier this month, President Donald Trump took the US out of the landmark
2015 Iran nuclear deal.

 

EU foreign policy chief Federica Mogherini said Mr Pompeo had not
demonstrated in his speech how abandoning the deal made the region safer
from the threat of nuclear proliferation.

 

Could the Iran deal collapse?

Does US 'Plan B' on Iran risk war?

The impact of Iran sanctions - in charts

What can Iran expect to see and when?

US sanctions lifted after the 2015 deal will be re-imposed, Mr Pompeo said,
and those and new measures will together constitute "unprecedented financial
pressure on the Iranian regime".

 

The older American sanctions prohibited almost all trade with Iran, making
some exceptions only for activity "intended to benefit the Iranian people"
such as the export of medical and agricultural equipment.

 

The secretary of state did not say what new measures Washington was
contemplating but he described sanctions imposed last week on the head of
Iran's central bank as "just the beginning".

 

Some of Europe's biggest firms who rushed to do business with Iran after the
nuclear deal now find themselves forced to choose between investing there or
trading with the US.

 

What is the nuclear accord?

Some of the biggest contracts at risk include:

 

French energy giant Total's deal, worth up to $5bn, signed to help Iran
develop the world's largest gas field. Total now plans to unwind those
operations by November unless the US grants it a waiver

Norwegian firm Saga Energy's $3bn deal to build solar power plants

An Airbus deal to sell 100 jets to IranAir

Iran is one of the world's largest oil producers, and the export of oil and
gas is worth billions of dollars each year.

 

Both the country's oil output and its GDP fell noticeably under
international sanctions.

 

The sanctions will not be re-imposed on Tehran immediately but are subject
to three-month and six-month wind-down periods.

 

"Iran will never again have carte blanche to dominate the Middle East," Mr
Pompeo said.

 

Javad Zarif said America was "regressing to old habits". Iran, he added, was
working with the other partners of the nuclear deal to find a solution.

 

This then is the US "Plan B" for Iran - to step up the sanctions pressure,
to force the Tehran government into a new diplomatic deal. It would need to
accept broader constraints not just on its nuclear activities but also on
its missile programme and wider behaviour in the region.

 

It is certainly tough but may be totally unrealistic. For sanctions to work
they must be comprehensive. The pressure that brought about the JCPOA deal
that President Trump has now abandoned was long-standing and widely
supported. Now Washington's European allies want to stick with the existing
deal. Russia, China and India are unlikely to bow to US pressure.

 

Compelling allies and other countries to abandon trade with Iran risks
damaging a whole series of wider diplomatic relationships.

 

Critics may charge that this "policy" is impossible - a diplomatic
smokescreen intended to cloak a policy whose fundamental goal is regime
change in Iran.

 

What are the demands Washington is making?

Mr Pompeo laid out 12 conditions for any "new deal" with Iran, including the
withdrawal of its forces from Syria and an end to its support for rebels in
Yemen.

 

Others include Tehran:

 

Giving the International Atomic Energy Agency (IAEA) a full account of its
former nuclear military programme, and giving up such work forever

Ending its "threatening behaviour" towards its neighbours, including "its
threats to destroy Israel, and its firing of missiles into Saudi Arabia and
the UAE"

Releasing all US citizens, and those of US partners and allies, "detained on
spurious charges or missing in Iran"

 

Why is Iran seen as a regional threat?

It has spread its influence across parts of the Middle East where there are
large communities of fellow Shia Muslims, from Iraq to Lebanon.

 

Its support for Lebanon's Hezbollah movement is particularly alarming for
Israel while Saudi Arabia, another bitter enemy, accuses the Iranians of
equipping rebels in Yemen.

 

In the Syrian civil war, it is one of President Bashar al-Assad's few
outside allies, sending thousands of fighters and military advisers.

 

Israel v Iran in 300 words

Lebanon caught in Saudi-Iran tension

Is the US on its own?

Israel praised the Trump administration's decision to pull out of the pact
but the move was roundly criticised by fellow signatories, including France,
Germany, the UK and Russia.

 

All of the above signatories pledged to honour their commitments under the
deal.

 

Mr Pompeo has made clear he expects the backing of his allies in Europe but
also called for support from "Australia, Bahrain, Egypt, India, Japan,
Jordan, Kuwait, Oman, Qatar, Saudi Arabia, South Korea [and] the UAE".

 

"We welcome any nation which is sick and tired of the nuclear threats, the
terrorism, the missile proliferation and the brutality of a regime at peace
with inflicting chaos on innocent people," he said.

 

What was agreed under the 2015 deal?

The Joint Comprehensive Plan of Action (JCPOA) saw Iran agree to limit the
size of its stockpile of enriched uranium - which is used to make reactor
fuel but also nuclear weapons - for 15 years and the number of centrifuges
installed to enrich uranium for 10 years.

 

 

Iran also agreed to modify a heavy water facility so it could not produce
plutonium suitable for a bomb.

 

In return, sanctions imposed by the UN, US and EU that had crippled Iran's
economy were lifted.

 

The deal was agreed between Iran and the five permanent members of the UN
Security Council - the US, UK, France, China and Russia - plus Germany.

 

Iran insists its nuclear programme is entirely peaceful, and its compliance
with the deal has been verified by the IAEA.--BBC

 

 

 

Shares jump on report China could scrap birth limits

Shares in Chinese firms that make and sell baby products have jumped after a
report said China is considering scrapping limits on the number of children
a family can have.

 

Shares in Shanghai Aiyingshi, which has a chain of shops selling baby
products, climbed 10%.

 

Xiamen Yanjan New Material, which makes material for nappies, also added
10%.

 

Bloomberg reported that China was investigating the impact of ending a
policy of limiting family sizes.

 

That would end regulations which date back to 1979 when, in an effort to
limit population growth, the one-child policy was introduced.

 

The policy was successful, but the social costs were high - families were
fined for having additional children, and forced abortions and mass
sterilisations were also used at times.

 

A traditional preference among Chinese parents for boys led to large numbers
of girls being abandoned, placed in orphanages, sex-selective abortions or
even cases of female infanticide.

 

What was China's one-child policy?

Over the years Chinese officials became more concerned about slowing
population growth and the ageing population, so the one-child policy was
relaxed.

 

The country's fertility rate is one of the lowest in the world and well
below the rate of 2.1 children per woman required to replace the population
across generations.

 

By 2050, more than a quarter of the population will be over 65.

 

So, in 2016, the policy was relaxed to allow couples to have two
children.--BBC

 

 

 

Comcast boosted in battle for Sky

US cable TV giant Comcast appears to have gained the upper hand in its
battle to take control of Sky.

 

The firm's £22bn bid for Sky is unlikely to be referred to the competition
authorities, the culture secretary Matt Hancock has said.

 

Mr Hancock said he did not believe that the proposed merger raised any
public interest concerns "which would meet the threshold for intervention".

 

The decision is a blow for 21st Century Fox, which is also trying to buy
Sky.

 

Rupert Murdoch's 21st Century Fox, which already owns 39.1% of Sky, agreed
an initial deal to buy the 61% of Sky it does not already own, in December
2016.

 

But unlike Comcast, Fox has faced lengthy political and regulatory delays,
and is still waiting for the government to say whether it should be allowed
to buy Sky.

 

Mr Hancock's final decision on whether Comcast should face regulatory
scrutiny is due by 4 June.

 

He said he would give interested parties until 1700 on 24 May to respond to
his preliminary decision.

 

In early April, 21st Century Fox said it would sell off Sky News to Disney
or ring-fence it to try to allay regulatory concerns over its proposed
acquisition of Sky.

 

However in late April, US telecoms giant Comcast threw its hat into the
ring, making a formal £22bn bid for Sky that values the UK broadcaster at
£12.50 a share.

 

Sky said it was withdrawing its recommendation for the Fox bid following
Comcast's move.

 

Comcast - the biggest US cable TV firm that also owns the NBC network and
Universal Pictures - said its bid offered a premium of about 16% to Fox's
£10.75 a share offer.

 

Chief executive Brian Roberts said: "We have long believed Sky is an
outstanding company and a great fit with Comcast. Sky has a strong business,
excellent customer loyalty, and a valued brand."--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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