Major International Business Headlines Brief::: 23 May 2018

Wed May 23 10:04:28 CAT 2018

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Major International Business Headlines Brief::: 23 May 2018

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

*  With Nigeria's central bank holding rates, doubts arise over cuts

*  South African rand recovers on retreating dollar

*  Beer maker AB InBev pumps up the volume in Africa

*  South Africa's finmin Nene says outlook for tax revenues unchanged

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

*  Morocco’s annual inflation rises to 2.7 pct yr/yr in April

*  Egypt's Suez Canal revenues rise to $479.3 mln in April

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

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

*  H&M scouts out potential suppliers in South Africa

*  Travellers hit by hidden currency fees

*  Manchester United 'remains most valuable club in Europe'

*  Trump faces backlash over possible $1.3bn ZTE fine

*  US to ease crisis-era Dodd-Frank banking rules

*  Amazon defends providing police facial recognition tech

 <mailto:info at bulls.co.zw> 

With Nigeria's central bank holding rates, doubts arise over cuts

ABUJA (Reuters) - Nigeria’s central bank kept its main interest rate at 14 percent on Tuesday, prompting some economists to question whether rate cuts will ever materialise in the wake of slowing inflation rates.

“The objective of the policy stance will be to accelerate the reduction in the rate of inflation to single digits, promote economic stability, boost investor confidence and promote foreign capital flows,” Central Bank of Nigeria (CBN) governor Godwin Emefiele said.

Nigeria’s benchmark rate has been held at 14 percent for almost two years, since inflation rates spiked and the naira devalued sharply with the country mired in its first recession for a quarter of a century.

However, Nigeria climbed out of recession last year and inflation has steadily decelerated, though that has largely been due to a recovery in crude production and a rebound in global oil prices.

The central bank governor said one reason rates were held was that inflation, still above the central bank’s single-digit target, could worsen again after an influx of cash from the implementation of Nigeria’s much-delayed 2018 budget.

Similarly, heavy spending during election season could also spark a jump in inflation, at 12.48 percent in April, Emefiele said.

Razia Khan, Standard Chartered’s chief economist for Africa, said that foreign exchange stability remains paramount.

President Muhammadu Buhari’s administration has prioritised maintaining a strong naira despite pressure for the currency to devalue, a policy criticised by the International Monetary Fund and World Bank, among others.

“The CBN will not do anything to risk this. Not even easing, when the opportunity presents itself,” said Khan, noting Nigeria’s weak economy and a contracting money supply outside government lending.

While the central bank “continues to hint that easing remains on the cards, when conditions eventually permit it, there is far less clarity on when everything might eventually fall into place,” she said.

On Monday, Nigerian statistics office data showed economic growth slowed in the first quarter of 2018, the first time since the country pulled out of recession last year.

That comes as President Muhammadu Buhari, elected in 2015 partly on promises to restore the Nigerian economy, seeks a second term in the February 2019 vote.

 <mailto:info at bulls.co.zw> 

South African rand recovers on retreating dollar

JOHANNESBURG (Reuters) - South Africa’s rand staged a modest recovery on Tuesday, as the dollar retreated after a recent rally.

At 1505 GMT the rand traded at 12.5900 to the dollar, up 0.7 percent from the previous day’s close.

The South African currency was around 2.5 percent stronger than a five-month low struck on Monday, helped by the dollar easing back from a five-month high.

The rand’s fortunes have been determined mainly by global market moves in recent weeks, in the absence of major shifts in local economic indicators.

A central bank business cycle indicator on Tuesday pointed to a slight slowdown in the pace of an economic recovery, but traders said its impact on the rand was minimal.

First-quarter gross domestic product data is expected to be released in early June.

Economists polled by Reuters expect the central bank to leave interest rates unchanged on Thursday, while market expectations are for ratings agency S&P Global to leave South Africa’s sovereign rating unchanged on Friday.

Stocks ended higher on Tuesday, tracking a upbeat tone in major overseas markets as an easing of pressure on Italy’s debt markets coincided with China’s latest move to open up its giant economy to the rest of the world.

The blue-chip JSE Top-40 index rose 0.56 percent to 51,598 points and the broader All-share index advanced 0.52 percent to 58,121 points.

Mobile phone company Vodacom and drugmaker Aspen were among the top gainers on the benchmark index, rising 4.4 percent and 4.6 percent, respectively.

Among the worst performers, Aveng slumped 23.8 percent as investors worried that its tie-up with rival builder Murray & Roberts could be scuppered.

In fixed income, the yield on the benchmark government bond due in 2026 was little changed at 8.56 percent.

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.”

South Africa's finmin Nene says outlook for tax revenues unchanged

CAPE TOWN (Reuters) - South Africa Finance Minister Nhlanhla Nene said on Tuesday that the outlook for tax revenues remain unchanged, in a blow to the chances of reducing the budget deficit.

Nene made the comments in parliament.

Treasury Director General Dondo Mogajane said earlier this month that South Africa will struggle to raise the tax revenues needed to reduce a budget deficit and support fragile economic growth due to ongoing problems in tax administration.

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.

The bid has been rejected by Murray and Roberts, which itself has started all-share merger talks with rival Aveng.

Morocco’s annual inflation rises to 2.7 pct yr/yr in April

RABAT (Reuters) - Morocco’s annual consumer price inflation rate rose to 2.7 percent in April from 2.5 percent in March, mainly due to higher food prices, the High Planning Authority said on Tuesday.

Egypt's Suez Canal revenues rise to $479.3 mln in April

CAIRO (Reuters) - Egypt’s Suez Canal revenues rose to $479.3 million in April, up from $463 million in March, official statistics on Tuesday showed.

The Suez Canal is the fastest shipping route between Europe and Asia and one of the main sources of foreign currency for the Egyptian government.

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.

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.

H&M scouts out potential suppliers in South Africa

CAPE TOWN (Reuters) - H&M is looking at South Africa as a potential supplier, with executives from the world’s second largest clothing retailer visiting some of the country’s main cities this week.

South Africa’s government helped to broker the H&M visit as part of efforts to boost the textile sector which has been hit hard by Chinese clothing imports that led to factory closures and thousands of job losses.

H&M faced protests in South Africa in January this year over an advert which featured a black child wearing a sweatshirt with the slogan “coolest monkey in the jungle.”

H&M apologised for the ad and removed it from its marketing.

“Following their apology ... we have proposed that they atone very practically by sourcing goods from South Africa,” Ebrahim Patel, Minister of Economic Development, said in a speech on May 10.

Amelia-May Woudstra, H&M spokewoman in South Africa, said company executives would visit Cape Town, Johannesburg and Durban, but that the assessment, which would consider partnerships with local suppliers, was still in its early stages.

“We have started with an assessment of South Africa as a potential sourcing market,” she said.

H&M, which has 18 stores in South Africa, currently imports all its clothing into the country, so a decision to produce clothes locally would be a big boost for the domestic textile industry, which competes with rivals such as Ethiopia and Swaziland.

“If H&M were to source garments in South Africa, it would be a huge vote of confidence in the sector. We definitely have the capacity locally to supply them and it can be turned on particularly quickly with basic commodity items such as underwear,” a textile industry source said.

The source said discussions were also underway with Australian no-frills chain Cotton On and Zara, the world’s biggest fashion retailer owned by Inditex, to source products locally.

Travellers hit by hidden currency fees

UK travellers are paying thousands in hidden fees when buying foreign cash, according to three technology companies including currency firm Transferwise.

Their survey of 8,000 customers has highlighted failings in the foreign exchange market that were flagged up by the government's own research unit in a recent report.

Fewer than half of those surveyed were able to pick the best of four foreign exchange deals using the information typically provided by suppliers such as banks, post offices and bureaux de change.

That finding comes from analysis by the Behavioural Insights Team - better known as the government's "nudge unit".

Most suppliers provide a fee or commission charge as well as an exchange rate. Most of the money they make does not come from commissions or fees but by offering a poor exchange rate.

Where can I find the cheapest travel money?

What they fail to reveal is the rate at which they purchase the currency sold to customers - the market or wholesale rate.

While this number can be found online at sites such as xe.com, most customers fail to do so. The difference between the two essentially represent hidden costs to the consumer - and hidden profits for the providers.

The report found that many providers stressed features like 0% commission or zero fees, which deflect consumer attention from the actual exchange rate they are being offered.

Capital Economics estimate that individuals and businesses are being charged nearly £6bn a year in fees without realising it.

Elisabeth Costa from the government's Behavioural Insights Team said: "Small businesses and consumers in the UK are charged billions each year in hidden foreign exchange transaction fees. We found that adding clearer information, particularly total costs in pounds, greatly increased consumers' ability to identify the best value deal."

The Behavioural Insights trial found that more information led to better decision making. When all fees were broken down and expressed in a total amount paid in pounds, the number of people who identified the best deal rose from less than half to two thirds.

But hang on a minute: consumers are not used to paying wholesale prices for bread milk or cheese - so is it unrealistic to expect to pay wholesale prices for foreign currency?

That may be true, says Kristo Käärmann from Transferwise, which matches buyers and sellers of currency online and competes with banks and bureaux de change for foreign exchange business.

However, he says customers are not getting the same level of transparency that users of other financial products, such as loans or credit cards, are presented with to make an informed choice. Even utility bills show the wholesale cost of the energy and breakdown other charges.

"It's fine to charge a fee for the service but people should know what that fee is rather than hiding it from customers who think they are paying zero or negligible fees," Käärmann says.

Worst rates

Transferwise is one of three tech companies that commissioned research by Yougov and Consumer Intelligence. It calculated that the average Brit will pay more than £5,000 in hidden fees over their lifetime, with people who retire abroad or own holiday homes paying far more.

When inflation is factored in over a lifetime of travel, that figure rises to nearly £17,000.

Transferwise clearly has an interest in disrupting the traditional suppliers, but the problem is real according to the government's own analysis.

A snapshot of foreign exchange fees from a variety of suppliers show that banks offer some of the worst rates. That is important because many businesses will routinely use their banks to complete transactions in foreign currency.

Holidaymakers will also often tend to use card payments or take money out of ATMs abroad rather than take large amounts of cash.--BBC

Manchester United 'remains most valuable club in Europe'

Manchester United has again been named most valuable European football club, being worth about €3.25bn (£2.9bn) says business services group KPMG.

The English club tops KPMG's study of top sides' "enterprise value", ahead of Real Madrid and Barcelona.

The study, based on the 2015-16 and 2016-17 seasons, studied profitability, broadcasting rights, popularity, sporting potential and stadium value.

Champions League finalists Liverpool are in eighth place in the rankings.

Man Utd quarterly sales up 8%

Man Utd remain top revenue generator

Man Utd receive more than champions Man City

In the analysis of 32 major teams, Premier League clubs fill six of the top 10 places.

Andrea Sartori, KPMG's global head of sports and the report's author, said the overall value of the football industry had grown over the past year.

"Overall growth is driven by different factors, one of these being the increase of operating revenues of the top 32, at 8%," he said.

"Eye-catching transfer deals and spiralling staff costs have not prevented such clubs from registering a striking upward trend, as the profits before taxes increased by some 17 times in comparison to the previous year."

Top 10 European clubs by 'enterprise value'

Manchester United - €3.255bn

Real Madrid - €2.92bn

Barcelona - €2.78bn

Bayern Munich - €2.55bn

Manchester City - €2.16bn

Arsenal - €2.10bn

Chelsea - €1.76bn

Liverpool - €1.58bn

Juventus - €1.30bn

Tottenham - €1.29bn

Source: KPMG

Mr Sartori added: "One of the reasons for this growth can be found in the significant influence exercised by English clubs, as well as the improved financial health of many mid-size clubs within the ranking, which also reflects compliance with the Uefa financial fair play regulation."

As well as dominating the top 10, there were a further three English teams - West Ham United, Leicester City and Everton - in the top 20 places.

Meanwhile, SSC Napoli (17th placed) became the second most valuable club in Italy, behind Juventus and ahead of the Milan giants.

This year, 12 clubs were valued in excess of 1bn euros, two more than in 2017.

And six clubs reported an "enterprise value" above 2bn euros: three from the English Premier League, two from Spain, and one from Germany.

During the 2015-16 and 2016-17 seasons, Manchester United won the FA Cup, League Cup and Europa League, but have ended the recent campaign trophyless.--BBC

Trump faces backlash over possible $1.3bn ZTE fine

US President Donald Trump has said he may lift a crippling export ban on Chinese technology firm ZTE and levy a $1.3bn fine instead.

His willingness to strike a deal has stirred controversy in the US, where the company has raised alarms related to national security.

Mr Trump said the current penalty, which led ZTE to halt major operations, has hurt US firms that sell to it.

Democratic Senator Chuck Schumer called the proposal "a wet noodle".

He said it was a punishment "in name only" and warned the president against taking a softer stance on ZTE in exchange for promises of increased Chinese purchases of US goods.

He said: "Putting our national security at risk for minor trade concessions is the very definition of short-sighted. And frankly, it would be a capitulation on the part of the Trump administration."

Negotiations about the alternative punishment are ongoing and come amid broader trade negotiations with China. The president also wants China's help to curb North Korea and its nuclear ambitions.

Is the Trump administration losing the China trade war?

US weighs plans to curb Chinese investment

Mr Trump said there was no deal yet but at the request of Chinese President Xi Jinping he is revisiting last month's ban, which blocks US companies from exporting to ZTE.

He later added he is not satisfied with the current state of trade talks with China.

"I think that they're a start, but we need something," he said.

The export ban is punishment for the ZTE's failure to comply with a settlement reached over its violations of sanctions against North Korea and Iran.

The president outlined the possible alternative while speaking to reporters in Washington on Tuesday at a meeting with the president of South Korea.

In addition to the fine, he envisions new management, a new board of directors, and requirements for significant purchases of US products, he said.

Going easy?

In a show of disapproval, the Senate Banking Committee voted overwhelmingly to amend a piece of legislation to prevent the president from being able to change sanctions unilaterally.

Maryland Senator Chris Van Hollen, who sponsored the measure, said it was "deeply troubling" that the president was "fighting to protect jobs in China" tied to a company that has been flagged as a security risk by US defence officials.

Congress is also considering other measures to block changes.

Mr Trump on Tuesday addressed his critics, who come from both parties, noting that his administration had imposed the ban initially.

He said: "For those who say, 'Oh gee, maybe the president is getting a little bit easy ... It was this administration that closed it."

He added that he also had to think about the US companies that do business with ZTE, which employs about 80,000 people and relies on parts from US tech companies to make its smart phones and telecommunications equipment.

"Don't think we didn't hear from them," he said.--BBC

US to ease crisis-era Dodd-Frank banking rules

A move to relax US banking rules approved after the financial crisis has cleared its final stage in Congress.

The House of Representatives voted 258-159 to approve the measure, sending it to the president to sign into law.

The bill, which won some bipartisan support, reduces the oversight requirements for banks with less than $250bn in assets, among other measures.

Supporters say it will help banks grow, but critics say it could mean a return to reckless behaviour among lenders.

Republicans, including President Donald Trump, have repeatedly pledged to repeal 2010 financial regulations known as Dodd-Frank.

They argued that the law was overly complex and costly, putting smaller banks at a disadvantage and inhibiting economic growth and lending.

Among other things Dodd-Frank required large financial institutions:

To hold more money to use in the event of a financial shock

To have increased protections for consumers such as those taking out mortgages

And to use improved stress tests aimed at measuring their ability to withstand a severe economic downturn.

It also made banks with more than $50bn in assets automatically subject to strict levels of oversight.

Following the amendments, only about a dozen financial institutions will be automatically subject to the strictest rules.

But supporters argued it would not gut crisis-era protections.

"The House just voted to free our economy from overregulation," Paul Ryan, the House Speaker and Wisconsin Republican, wrote on Twitter after the vote.

"Main Street banks are engines of growth, and now it will be easier for these banks to lend to #SmallBiz and families."

However, critics of the changes said they would lead the US down a "dangerous road".

They also pointed to record profits on Wall Street, saying banks did not need further relief from the rules.

According to official figures, profits at the country's roughly 5,600 federally insured financial institutions totalled a record $56bn in the first three months of the year.

That was a more than 27% rise from the same period in 2017.

"It's a bad bill under the guise of helping community banks," Nancy Pelosi, the Democratic minority leader said earlier this week.

"The bill would take us back to the days when unchecked recklessness on Wall Street ignited an historic financial meltdown."

Republicans, who wanted the reforms to go further, said they were working on other deregulatory proposals.

According to the New York Times, later this month, regulators are also expected to publish a plan to water-down the Volcker Rule, which bans banks from making risky bets with depositors' money.--BBC

Amazon defends providing police facial recognition tech

Amazon has defended working with US police forces to provide facial recognition technology, amid concern from civil rights groups.

The American Civil Liberties Union (ACLU), and others, said the retail giant's Rekognition software guide "read like a user manual for authoritarian surveillance".

But Amazon said "quality of life would be much worse" if technologies were blocked because of how they could be used by others.

It said the tech had in the past been used to find lost children or other people of interest - and had great potential for fighting crime in future.

Through a freedom of information request, the ACLU was able to obtain emails sent back and forth between Amazon staff and law enforcement agencies in the states of Oregon and Florida.

In Oregon, the tech was powered by a 300,000-person database of mug shots that powered a mobile app. Officers could use the app to cross reference people's faces with any criminal record.

The emails also discussed the integration of this technology with body cameras used by police.

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"Applying facial recognition to body cameras would absolutely transform those devices," argued Matt Cagle, technology and civil liberties attorney for the ACLU in California, speaking to the BBC.

"They were you know many departments adopted body cameras with the purpose of officer accountability.

"This would turn those devices into surveillance machines aimed at the public."

Cloud-powered

The system makes use of Amazon's cloud computing platform, Amazon Web Services (AWS).

The technology was not a secret - Amazon had published details of its work with police on its AWS blog.

The system makes use of Amazon's cloud computing platform, Amazon Web Services (AWS).

The technology was not a secret - Amazon had published details of its work with police on its AWS blog.

But in response to a joint letter sent by the ACLU and 33 other groups, Amazon defended its partnerships with law enforcement agencies. It said fears over misuse of the technology should not inhibit use of facial recognition to fight crime.

"Our quality of life would be much worse today if we outlawed new technology because some people could choose to abuse the technology," Amazon said in a statement.

"Imagine if customers couldn't buy a computer because it was possible to use that computer for illegal purposes?"

The ACLU's Mr Cagle said he believed Amazon was entering the surveillance industry without proper consideration about how this technology could be used in future.

"When powerful surveillance technologies are deployed it is difficult and often impossible to undo the harms once those technologies are deployed in communities.

"And so we're very concerned that Amazon appears to be rushing into this surveillance market with and with no meaningful restrictions to limit how governments can use this and local governments themselves and local law enforcement are not adopting their own restrictions."

The debate over the implantation of facial recognition software is happening all over the world. In China, three wanted criminals have been arrested while at pop concerts after facial recognition spotted them as they entered the venue.

Some point to the technology's limitations as a reason not to use it for law and order, including its shortcomings when accurately identifying people of colour.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Zimplow

AGM

Head Office, 36 Birmingham Road, Southerton

23/05/2018 10am

Proplastics

AGM

Ophir Room, Monomotapa Hotel

24/05/2018 10am

NMB

AGM

Head Office, 4th Floor, Unity Court, Corner 1st Street/Kwame Nkrumah Ave

24/05/2018 3pm

Africa Day

Africa Day

Africa Day

25/05/2018

FMP

AGM

Royal Harare Golf Club

29/05/2018 2.30pm

Unifreight

AGM

Royal Harare Golf Club

30/05/2018 10am

Barclays

AGM

Stewart Rooms, Meikles

30/05/2018 3pm

Masimba

AGM

Head Office , 44 Tilbury Road, Willowvale

31/05/2018 13.30pm

Edgars

AGM

Edgars Training Auditorium, 1st Floor, LAPF House, 8th Ave/Jason Moyo St, Bulawayo

07/06/2018 9am

Turnall

AGM

Jacaranda Room, Rainbow Towers

07/06/2018 9am

FMHL

AGM

Royal Harare Golf Club

11/06/2018 2:30pm

RioZim

AGM

Head Office, 1 Kenilworth Road, Highlands

21/06/2018 10:30am

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

 <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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