Major International Business Headlines Brief::: 28 May 2018

Mon May 28 11:29:29 CAT 2018

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Major International Business Headlines Brief::: 28 May 2018

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*  South Africa's Telkom to step up mobile push to counter revenue decline

*  Tongaat's FY profit falls 37 pct on higher sugar imports by South Africa

*  South Africa's rand rises after S&P leaves ratings unchanged

*  S&P affirms South Africa rating, keeps stable outlook

*  South Africa investigates $80 million bitcoin scam

*  Oil output at Libya's AGOCO back to 250,000 bpd after power problems -
official

*  India's Mahindra opens first assembly plant in South Africa

*  Food and farming sector makes post-Brexit demands

*  Business groups write to PM urging Heathrow expansion

*  UK engineer Smiths starts merger talks with US rival

*  Mining group Vedanta 'should be delisted'

 <mailto:info at bulls.co.zw> 

South Africa's Telkom to step up mobile push to counter revenue decline

JOHANNESBURG (Reuters) - Telkom SA, South Africa’s biggest landline
provider, will sharpen its focus on mobile and data services, its CEO said
on Monday after reporting an 18 percent drop in full-year earnings.

Telkom, which also provides information communications and technology
solutions, said headline earnings per share for the year to March 31 fell to
597 cents from 731.4 cents the previous year, hit by a higher tax rate and
labour costs..

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

Group earnings before interest, tax, depreciation and amortisation fell by
3.6 percent while profit after tax declined by 19.2 percent to 3.2 billion
rand ($257.25 million).

Telkom, in which the government plans to sell part of its 39 percent stake,
is also grappling with an economy that is barely growing and intense
competition amid political and policy uncertainty and sovereign credit
rating downgrades in 2017.

“We felt the impact of the weak economic environment, as the private and
public sectors respectively deferred and lowered their information
communications and technology (ICT) spend,” group CEO Sipho Maseko said in a
statement.

The star performer was the group’s mobile business, which Maseko now sees as
a key driver of growth. Mobile service revenue was up 47.2 percent.

Under Maseko, Telkom has been expanding its mobile business to offset
declines in traditional voice operations.

“Our focus going forward is to increase the contribution from the new
generation revenue streams (mobile and data),” he said. “Despite their lower
margin compared to traditional revenue streams, the new-generation revenue
streams will ensure Telkom’s long-term sustainability.”

Telkom declared an annual dividend of 355 cents per share, down 16.3
percent.

($1 = 12.4393 rand)

 <mailto:info at bulls.co.zw> 

Tongaat's FY profit falls 37 pct on higher sugar imports by South Africa

JOHANNESBURG (Reuters) - South Africa’s Tongaat Hulett posted a 37 percent
fall in full-year profit on Monday, weighed down by higher-than-expected
sugar imports by the country and low international prices of the sweetener.

Diluted headline earnings per share (HEPS) fell to 534.8 cents ($0.4296) in
the year ended March 31, from 852.7 cents in the previous year. This was in
line with the company’s guidance.

HEPS is the main profit measure used in South Africa which strips out
certain once-off items.

The company, which has also operations in Zimbabwe and Mozambique, said its
sugar operations in South Africa were hit by imports and its storage.

Also, exports of locally produced sugar in the latter part of the year when
global prices were low and the rand was strong, weighed on its performance,
the company added.

“The sugar operations were adversely affected by the dynamics of imports
into the South African market, low international sugar prices and the impact
of stronger local currencies on export realisations,” the company said.

Sugar production rose 10 percent to 1,171 million tonnes, reflecting a
slight recovery in drought conditions of the previous two seasons.

An El Nino-induced drought in southern Africa, which led to the driest year
on record in 2015, crippled production of maize, sugar and other
agricultural products.

Tongaat Hulett declared a final dividend of 60 cents per share, bringing the
annual dividend to 160 cents, compared with 300 cents in the previous year.

($1 = 12.4500 rand)

South Africa's rand rises after S&P leaves ratings unchanged

JOHANNESBURG (Reuters) - South Africa’s rand gained on Monday after Friday’s
late-night decision by S&P Global Ratings to keep the country’s debt
unchanged at sub-investment grade “BB’/‘BB+” with a stable outlook.

At 0630 GMT, the rand was up 0.42 percent at 12.4500 per dollar. It had
traded above 12.50 before the S&P’s decision.

S&P’s said the stable outlook reflected its belief that economic growth
would pick up in 2018, although public debt would remain worryingly above 50
percent of GDP.

In March, Moody’s kept Pretoria’s investment-grade credit rating and revised
its credit outlook to stable from negative. Of the big-three ratings
agencies, only Fitch has yet to give its rating update.

Traders warned that relief for rand may be short-lived, because dollar
strength and geopolitical uncertainty meant markets remained wary of riskier
assets.

Bonds rose, with the yield on benchmark debt due in 2026 down 2 basis points
at 8.43 percent.

Stocks were set to open higher at 0700 GMT, with the Johannesburg Stock
Exchanges’ Top-40 future’s index up 0.42 percent.

In early results releases, sugar producer Tongaat Hulett posted full-year
profit fell 37 percent. The country’s biggest landline provider, Telkom,
said full-year earnings declined 18.4 percent.

S&P affirms South Africa rating, keeps stable outlook

JOHANNESBURG (Reuters) - S&P Global Ratings affirmed South Africa’s
sub-investment grade credit rating and kept its stable outlook on Friday,
warning the country’s improved economic growth remained tentative and the
fiscal position was still weak.

Africa’s most industrialised economy has barely grown in the past decade
with fiscal missteps and government corruption contributing to weak business
and consumer confidence.

Investor sentiment has picked up after President Cyril Ramaphosa pledged to
clean up the graft and misgovernance that critics say bedeviled the
administration of his predecessor Jacob Zuma, who was forced from office in
February by the ruling African National Congress (ANC).

S&P rates South Africa’s foreign currency debt ‘BB’ and its local currency
debt ‘BB+’, having downgraded the country to “junk” status last year
following a deterioration in the economic outlook and public finances under
Zuma.

S&P said the stable outlook reflected its view that South Africa’s economic
growth would pick up modestly over the next year as the government pursues
economic and social reforms, but warned government debt would remain above
50 percent of GDP.

“South Africa’s fiscal position is still weak, with a large debt burden and
sizable contingent liabilities,” S&P said in a statement.

The Treasury said restoring the country’s investment grade credit rating
remained a top priority and that the government would engage S&P on their
concerns.

Ramaphosa has pledged that his government would reform state companies that
have plunged public finances into crisis in recent years, including heavily
indebted power utility Eskom and South African Airways (SAA).

S&P said the political transition as well as policy proposals could support
South Africa’s firmer economic growth and stabilizing of public finances
over the medium term.

South Africa investigates $80 million bitcoin scam

JOHANNESBURG (Reuters) - South African authorities are investigating an
alleged cryptocurrency scam that defrauded investors of 1 billion rand ($80
million) with promises of huge returns that never materialised, police said
on Friday.

The fraud investigation involves a company named BTC Global, which told
clients they would earn 2 percent per day, 14 percent a week and 50 percent
in a month, the police said.

A search for the company on the internet showed its services had been
suspended.

The website lists Steven Twain as the “primary trader”. A request for
comment by Reuters sent to an email address listed on the website as
belonging to Twain received no response.

“Members of the public are believed to have been targeted as part of the
scam and encouraged by agents of BTC Global,” the police said in a
statement.

“Some of the investors got paid in terms of the agreement. However, the
payments suddenly stopped.”

Local technology news website mybroadband.co.za had reported in March that
more than $50 million was lost by investors in BTC Global.

“This may prove to be the tip of the iceberg with potentially thousands more
yet to discover they’ve lost money,” police investigator Yolisa Matakata
said.

The investigation follows a case this week where kidnappers demanded a
ransom in bitcoin of nearly $120,000 to release a South African teenage boy.

On Thursday South Africa’s central bank said it was in the process of
determining whether cryptocurrencies complied with its financial
surveillance and exchange control regulations.

($1 = 12.4837 rand)

Oil output at Libya's AGOCO back to 250,000 bpd after power problems -
official

BENGHAZI, Libya (Reuters) - Production at Libya’s Arabian Gulf Oil Company
(AGOCO) has returned to normal levels at 250,000 barrels per day (bpd) after
output losses caused by power supply problems because of high temperatures,
an official from the company said on Sunday.

Production had fallen to less than 150,000 bpd on Wednesday after unusually
hot weather caused the power supply problem.

India's Mahindra opens first assembly plant in South Africa

CAPE TOWN (Reuters) - Indian automaker Mahindra and Mahindra has opened its
first assembly plant in South Africa, which it sees as a launchpad to export
vehicles to the rest of the continent, the chief executive of its local
business said.

The new modular assembly plant, which imports car parts and builds the final
product, is located in the east coast city of Durban. It will have an annual
capacity of 2,500 Pik Up trucks which could be increased to assemble up to
4,000 Mahindra vehicles each year.

India’s top-selling utility vehicle maker will compete against rivals with
existing plants in South Africa, whose export-focused auto manufacturing
sector has attracted billions of dollars of investment from the likes of
BMW, Ford, VW and Toyota to expand and upgrade factories.

“The last five years was a wonderful time for us,” said Rajesh Gupta, chief
executive of Mahindra SA.

“We could demonstrate growth which pushed us into the category of the top
five fastest-growing OEMs (original equipment manufacturers) in South
Africa,” he said.

Gupta said the company would push to meet government targets of sourcing 40
percent of its components, measured in value, from local suppliers and
thereby benefit from tax incentives.

The factory started trial production this month, with full production seen
in July.

Gupta said other models, such as the Bolero SUV, could eventually be
assembled in Durban and exported to sub-Saharan Africa.

Mahindra, which is the world’s largest tractor maker by volume, was also
considering introducing its tractors into the South African market.

“Anything that we try to do we will try to localise and assemble them,” he
said, adding that this could include construction equipment and heavy-duty
power generator systems.

($1 = 12.4621 rand)

Food and farming sector makes post-Brexit demands

The food and farming industry wants assurances from the government that it
will still be able to recruit enough staff from the EU after Brexit.

The demand came as part of a manifesto drawn up by more than 100
organisations across the industry and sent to the PM.

It urges the government to publish a white paper setting out its immigration
plans "as a matter of priority".

A government spokesperson said those in the sector would be able to recruit
EU citizens until December 2020.

Those in the farming industry have previously raised concerns about the
impact of leaving the European Union on agricultural labour, which is often
short-term, flexible and seasonal.

Environment Secretary Michael Gove said earlier this year that the case for
a seasonal agricultural workers scheme after the UK leaves the EU in 2019
was "compelling."

The Food Supply Chain manifesto was sent to Prime Minister Theresa May by
the National Farmers' Union president Minette Batters.

It said the "significant number" of EU nationals the sector employed meant
it was vital the government "ensures a continuing, adequate supply of
permanent and seasonal labour" before and after the UK leaves the EU in
March 2019.

The document said that recruitment difficulties from within the UK meant the
government needed to guarantee that "in the short- to medium-term, the
industry has access to the overseas labour market to help meet its
recruitment needs".

The other main issues raised in the manifesto, drawn up by organisations
representing farmers and their suppliers as well as manufacturers and
retailers, were:

*         Maintaining "frictionless" trade with the EU

*         Developing an agriculture policy which promotes food production
while maintaining existing high standards

*         Ensuring an "efficient and proportionate" regulatory system

*         NFU president Ms Batters said a Brexit that failed to champion UK
food producers "will be bad for the country's landscape, the economy and,
critically, our society".

She added: "The signatories to this manifesto will be looking to government
to ensure its objectives are aligned with ours, to ensure British food
production - something of which every person in this country enjoys the
benefits - gets the best possible deal post-Brexit."

In response to the manifesto, a government spokesperson said: "We have been
clear that up until December 2020, employers in the agricultural and food
processing sectors will be free to recruit EU citizens to fill vacancies and
those arriving to work will be able to stay in the UK afterwards.

"We are determined to get the best deal for the UK in our EU negotiations,
not least for our world-leading food and farming industry which is a key
part of our economic success."--BBC

Business groups write to PM urging Heathrow expansion

Theresa May has been urged to stick to the government's timetable for having
a vote on Heathrow expansion.

A number of business lobby groups have signed a letter saying the government
needs to "get on with expanding the UK's airport capacity".

The BBC understands that the idea for the letter came from Heathrow itself.

Transport Secretary Chris Grayling has also been asking business groups to
support the expansion plans, the BBC has learned.

The business organisations that signed the letter have all come out in
favour of Heathrow expansion in the past.

The letter sent to Number 10 said: "As Brexit approaches, Heathrow expansion
is crucial to making sure the UK remains an outward-looking trading nation
and is well-equipped to compete on the world stage.

"For British businesses, the benefits of expansion have always been clear:
connections to new markets and trading opportunities, with better links with
regional airports across the UK a boost to British exports, and a skills
legacy for future generations."

The letter adds that the UK is losing ground to competition from European
airports.

"There are many unknowns for businesses surrounding Britain's future trading
arrangements, but what is absolutely certain is that our economic success
depends on securing Heathrow's future as a leading international airport,"
it adds.

The groups that put their name to the letter were the Confederation of
British Industry, the British Chambers of Commerce, the Institute of
Directors, the Federation of Small Businesses, the EEF - The Manufacturers'
Organisation, the London Chamber of Commerce and Industry, and airport
expansion lobby group London First.

Letter impetus

The BBC understands that these organisations were asked by Heathrow to lobby
the government collectively via the letter.

The timing of the letter, which has been published by Heathrow, is
particularly important.

The government is due to timetable a vote on the Airports National Policy
Statement, which is going to set out its airport infrastructure policy -
including Heathrow expansion - in the first half of the year.

Heathrow regularly has meetings with the business lobby groups, and its
position is that the groups sent the letter out of a mutual desire to get
the vote tabled, the BBC understands.

It was expected that the vote would happen before the summer recess, which
runs from 24 July to 4 September.

The business lobby groups and Heathrow want the vote to go ahead as planned
before September because then MPs will be more pre-occupied with Brexit.

The terms for Britain to leave the EU need to be concluded by 30 September
2018 under a timetable set by the EU's chief negotiator Michel Barnier.

Grayling's effort

The UK vote on the Airports National Policy Statement will be tabled after a
process is set in motion by Transport Secretary Chris Grayling.

He in turn has been lobbying business groups for support for the
government's Heathrow expansion plans to try to get MPs to vote in favour.

Conservative MPs are likely to vote with the government. Unions and many
Labour MPs also support expansion, but the Labour leadership in the past has
come out against Heathrow expansion on environmental grounds.--BBC

UK engineer Smiths starts merger talks with US rival

UK engineering firm Smiths Group has begun talks with the US company ICU
Medical about merging the two firms' healthcare operations.

In a statement, Smiths said it was in "very early discussions" to combine
its medical unit with the rival US firm.

It added, the board "routinely reviews all options for the Group's portfolio
of businesses" to maximise value for shareholders.

However, Smiths stressed there was "no certainty" a deal would be concluded.

The UK engineering giant is also reported to be holding discussions with
other US companies.

The group's healthcare arm, Smiths Medical, makes hospital and emergency
supplies including respiratory equipment and catheters and has a global
workforce of 7,000 people.

In March, the parent company reported that Smiths Medical made revenues of
£451m ($600.8m) in the six months to the end of January.

Smiths Medical was the target of a previous takeover bid in 2011, worth
£2.45bn ($3.21bn), but it was rejected by the group.--BBC

Mining group Vedanta 'should be delisted'

John McDonnell has called for mining firm Vedanta to be delisted from the
London Stock Exchange after 13 people died in violent protests outside the
firm's southern Indian copper smelter.

The shadow chancellor said regulators must take action after the "massacre"
of protesters this week.

The people were killed in clashes when police opened fire on protestors.

Residents have been staging protests for months, saying that the smelter is
causing environmental damage.

Copper plant shut after deadly protests

India's Tamil Nadu state - where the copper smelter is based - has said it
wants it permanently closed on environmental grounds.

But Vedanta has said it plans to continue operations.

Mr McDonnell said removing Vedanta from the London Stock Exchange "would
prevent further reputational damage to London's financial markets from this
rogue corporation".

Vedanta has been contacted for a response to Mr McDonnell's comments and the
London Stock Exchange declined to comment.

Amnesty International said this week that police had "many questions to
answer" and "those responsible should be brought to justice".

P. Ramnath, chief executive of Vedanta's India copper business, said it was
not planning to set up a smelter elsewhere.

"We're confident that we will be able to overcome these issues. It will
certainly require a huge effort but I am sure we can hope to restart as
quickly as possible," he told Reuters.

The company said it was working with authorities to restore power to the
plant, which has been offline since late March.

Vedanta has previously denied that the smelter has been responsible for air
and water pollution.

Shares in Vedanta, which is controlled by Indian billionaire Anil Agarwal,
fell sharply on Wednesday following the deaths, and on Friday ended the day
0.5% lower at 728p, valuing the company at about £2bn.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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
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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
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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
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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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