Major International Business Headlines Brief::: 19 November 2018

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Major International Business Headlines Brief::: 19 November 2018

 


 

 


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*  South Africa's Eskom to cut 1,000 MW of power from grid on Sunday

*  Egypt's Pioneers Holding makes bid for Electro Cable Egypt -statement

*  Struggling Fastjet plans to raise at least $40 mln

*  Kenya central bank upholds fines against lenders for suspect transactions

*  Barrick Gold eyes assets, exploration as it plots new phase

*  Morocco’s Mutandis launches IPO to raise 400 mln dirhams in Casablanca

*  MTN Rwanda close to finalising a 50 bln franc syndicated loan

*  Nigeria raises $2.86 bln in Eurobonds to fund deficit

*  South Africa's Eskom revises coal contract strategy, seeks supply security

*  Australia's Fairfax gets green light to merge with Nine

*  Apec summit ends without statement over US-China division

*  Brexit turmoil: Small businesses 'fed up with the whole thing'

*  UK shares remain fragile amid Brexit turmoil

*  Xi Jinping: US-China trade war will produce no winners

*  Rolls-Royce boss says May's Brexit deal is better than no deal

*  Mark Zuckerberg, missing in inaction

*  EE and Virgin Media fined £13.3m for overcharging customers

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

South Africa's Eskom to cut 1,000 MW of power from grid on Sunday

JOHANNESBURG (Reuters) - South African power utility Eskom will cut 1,000 megawatts of electricity from the strained national power grid on Sunday after high unplanned outages, a company spokesman said.

 

The power cuts - locally known as load-shedding - will be implemented from 1015 GMT to 2000 GMT, Khulu Phasiwe said on Twitter.

 

 

“Eskom has had to implement stage 1 load-shedding. Apologies for the inconvenience that this will cause,” Phasiwe said.

 

Eskom implements controlled power cuts to prevent the grid from being overwhelmed. Stage 1 power cuts shed up to 1,000 MW from the grid.

 

Eskom, which supplies more than 90 percent of South Africa’s power, last week warned of potential outages amid low coal inventories after a major supplier cut supplies and sought insolvency protection.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Egypt's Pioneers Holding makes bid for Electro Cable Egypt -statement

CAIRO (Reuters) - Egypt’s Pioneers Holding said on Sunday it has made an offer to acquire all of Electro Cable Egypt through one of its subsidiaries at a price of 1.35 Egyptian pounds ($0.0754) per share.

 

Pioneers Holding owns 48.5 percent of Electro Cable Egypt, one of the oldest cable companies in the Middle East, and has bid to buy the rest of the company.

 

($1 = 17.9000 Egyptian pounds)

 

 

Struggling Fastjet plans to raise at least $40 mln

(Reuters) - Low-cost African airline Fastjet, which said in September it needed more cash within a month to continue operating, announced a fundraising and equity refinancing aimed at increasing its equity base by at least $40 million.

 

Fastjet, whose shares lost more than half their value after September’s announcement, said the steps would significantly reduce its debt and provide the company with working capital until the end of 2019.

 

The airline, which operates in Tanzania, Zambia, Zimbabwe, Mozambique and South Africa, announced soon afterwards that it had raised $11.5 million through a placing of 898.4 million shares.

 

“Business in our continuing operations in Zimbabwe and growth-markets of South Africa and Mozambique is on the right track”, CEO Nico Bezuidenhout said.

 

In addition to the placing, Fastjet’s largest shareholder Solenta Aviation agreed to subscribe 316.7 mln shares of Fastjet, raising $4.1 million and increasing Solenta’s stake in the company to 54.3 percent from 29.8 percent.

 

Fastjet will also issue 1.91 billion shares valued at $24.4 million to acquire four Embraer 145 aircraft from Solenta and to settle the majority of Solenta long-term loans to the company.

 

In addition, Fastjet also proposed an open offer to raise up to $5.3 million.

 

Fastjet, launched in 2012 and modelled on the likes of no-frills airlines easyJet Plc and Ryanair Holdings Plc, has been running short of cash for more than two years.

 

Easyjet founder Stelios Haji-Ioannou also helped found Fastjet.

 

 

 

Kenya central bank upholds fines against lenders for suspect transactions

NAIROBI (Reuters) - Kenya’s central bank has upheld the fines it imposed in September against five top commercial lenders for a failure to report suspicious transactions in connection with the theft of funds at a state agency, it said on Friday.

 

Penalties totalling 392.5 million shillings ($3.80 million)were imposed on Standard Chartered Kenya, Equity, Diamond Trust, Co-operative Bank and KCB Group.

 

The regulator said that the five banks had failed to report large transactions and to undertake proper due diligence on customers. It also accused them of approving large transactions without proper documents.

 

All the banks had been given the opportunity to respond to the findings of the investigation.

 

“CBK (Central Bank of Kenya) has reviewed each bank’s response to the penalty assessment and has concluded that the submissions were not sufficient to alter the findings of the investigations and the penalties assessed,” the bank said.

 

“Consequently, CBK has levied the penalties as assessed.”

 

The actions had been taken to safeguard stakeholders’ interests and to maintain a healthy financial sector, the central bank said in a statement.

 

Dozens of senior government officials and business people were charged in May with various crimes related to the theft of nearly $100 million from the National Youth Service, marking a new effort to crack down on widespread corruption.

 

($1 = 103.3000 Kenyan shillings)

 

 

 

Barrick Gold eyes assets, exploration as it plots new phase

TORONTO/LONDON (Reuters) - Barrick Gold Corp, soon to become the world’s largest bullion miner, is interested in adding more copper assets as long as the red metal is accompanied by bullion, executives said on Friday.

 

Barrick, which expects to complete its $6.1 billion takeover of Randgold Resources Jan. 1, outlined plans for exploration, expansion, streamlining and asset sales at an investor presentation in London.

 

Structured under regions in North America, South America and Africa and the Middle East, Barrick spent the last four days focusing on where to take the merged company, said Randgold Chief Executive Officer Mark Bristow, who will be Barrick’s new CEO.

 

Barrick is open to copper assets “as long as that copper is a component or co-product to the gold,” said Rod Quick, who heads Randgold’s projects and evaluation and will do the same in the merged company. “Or, unless that copper project will enhance our strategic partner network.”

 

In Africa, Barrick is open to exploiting its “substantial footprint” in the Democratic Republic of Congo to acquire world-class deposits, said Willem Jacobs, who heads Randgold’s operations in central and east Africa and becomes Chief Operating Officer of Barrick’s Africa and Middle East region.

 

In Zambia, Barrick aims to lower costs at its “relatively low-grade” Lumwana copper mine, he added, noting the country’s new mining code stands to materially affect margins.

 

Barrick said it is keen on exploration outside its operating base, flagging South America’s Guyana Shield, which crosses Suriname, Guyana and French Guyana. It also wants more exposure in Canada.

 

Rob Krcmarov, executive vice president of exploration, said Barrick is interested in “copper opportunities” within its operating regions that meet investment criteria.

 

To approve projects with potential for more than 5 million ounces of gold, Barrick will require a 15-percent rate of return, based on a $1,000 gold price, said Quick. Projects with more than 3 million ounces of gold, need a 20-percent return.

 

Barrick expects stronger operating cash flows, non-core asset sales and lower overhead and interest costs will help it increase future dividends, said Randgold Chief Financial Officer Graham Shuttleworth, who takes the same role at Barrick.

 

Talks are underway to sell Barrick’s Lagunas Norte mine, said Mark Hill, COO of Latin America. Barrick said in August the Peru mine was an example of the non-core mines it would look at selling. Reuters reported last year that Barrick was exploring options, including the sale of all or part of, Lagunas Norte.

 

 

 

Morocco’s Mutandis launches IPO to raise 400 mln dirhams in Casablanca

RABAT (Reuters) - Morocco’s Mutandis received a green light on Friday to launch an initial pubic offering (IPO) to raise 400 million dirhams ($42.1 million), only the second this year on the Casablanca stock exchange, bourse regulator AMMC said on Friday.

 

Founded in 2008, Mutandis is an industrial and commercial group specialising in consumer goods. It owns nine plants in Morocco that produce mainly detergents, canned fish, fruit juice and plastic bottles.

 

Through the IPO, Mutandis aims to enhance access to funding and boost investments through the acquisition of new industrial plants in Morocco and the setting up of others in sub-Saharan Africa, said a prospectus published on AMMC’s website.

 

“We export a third of our output. Half is sold in Africa and the other half in Western Europe,” Mutandis founder Adil Douiri told a news conference at Casablanca Stock exchange.

 

 

 

MTN Rwanda close to finalising a 50 bln franc syndicated loan

KIGALI (Reuters) - MTN Rwanda, the biggest telecoms operator in the East African nation, is close to sealing a deal for a 50 billion franc ($56.29 million) syndicated loan to be used to modernise its network, its chief financial officer said on Thursday.

 

Diatile Lily Zondo told Reuters that the company had no plans for an initial public offering, disputing a report by news agency Bloomberg earlier in the week.

 

($1 = 888.1812 Rwandan francs)

 

 

 

Nigeria raises $2.86 bln in Eurobonds to fund deficit

LAGOS (Reuters) - Nigeria raised $2.86 billion in Eurobonds on Wednesday across three maturities, to help fund its budget deficit, in a sale that was three times oversubscribed, the government said.

 

It priced the bonds with maturities of seven, 12 and 30 years at 7.625 percent, 8.75 percent and 9.25 percent, respectively.

 

Nigerian officials have been meeting investors at a roadshow organised by Citi and Standard Chartered in London this week prior to issuing the Eurobond.

 

The meeting led by Nigerian Finance Minister Zainab Ahmed, was attended by Budget Minister Udoma Udo Udoma, Central Bank Governor Godwin Emefiele and head of the Debt Management Office (DMO).

 

The government said demand for the dollar-denominated bond stood at $9.5 billion from global institutional investors. The bond would help Nigeria fund its budget deficit for 2018 and other financing needs, it said.

 

“Despite significant oil and wider macro market volatility, Nigeria has successfully raised its external debt requirements for the 2018 budget at a cost considerably lower than many of its peers across Sub-Sahara Africa,” the government said in a statement.

 

Nigeria sold $1.18 billion in seven-year tenor, $1 billion with 12-year maturity and $750 million for 30-years. The offer would close on Nov. 21.

 

The upper house of parliament last month approved the Eurobond issue but advised the government to limit foreign borrowing and boost revenue.

 

Wednesday’s issue is Nigeria’s sixth Eurobond sale.

 

Last year Nigeria sold $3 billion in Eurobonds, part of which it used to fund its 2017 budget. It then followed with a $2.5 billion Eurobond sale in February to refinance local currency bonds at lower cost.

 

Lawmakers said the new bond issue will raise foreign borrowing to 32 percent of Nigeria’s total debt, up from 30 percent at June 2018.

 

Nigeria, which emerged from recession last year, approved a three-year plan in 2016 to borrow more from abroad. It wants 40 percent of its loans to come from offshore sources to lower borrowing costs and help to fund record-high budgets.

 

President Muhammadu Buhari, who plans to seek a second term in next year’s election, signed 2018’s record 9.12 trillion naira ($29.8 billion) budget into law in June as part of efforts to foster economic growth.

 

Fitch upgraded the outlook on Nigeria’s sovereign rating to stable from negative prior to Wednesday’s issue, the statement said.

 

 

 

South Africa's Eskom revises coal contract strategy, seeks supply security

JOHANNESBURG (Reuters) - South Africa’s cash-strapped power utility Eskom said on Friday it had revised its coal strategy to focus on contracts that offer long-term, fixed prices and security of supply as it faces possible power outages and low stockpiles of the fuel.

 

“Eskom’s long-term coal strategy has been revised to revert Eskom’s coal supply to dedicated long-term coal contracts for the life of the stations, with a preference for conveyor-delivered coal,” an Eskom presentation showed.

 

Eskom, which supplies more than 90 percent of the nation’s power, has warned of potential power outages amid low coal inventories after a major supplier cut supplies and sought insolvency protection.

 

The utility also said it would extend its “cost-plus” mine contracts, through which it pre-pays mines to start up mining operations, pays the operating costs and a management fee and in return receives security of supply.

 

Africa’s largest public utility said it would in the short term buy 4 million tonnes of coal for immediate supply to bring all power stations above the minimum required level for stockpiles by the end of March 2019.

 

Eskom said it had 10 power stations with coal supplies of fewer than 20 days. Five of those had fewer than 10 days’ supply.

 

Eskom said it had concluded 27 new, short-term coal contracts between January and October for the supply of 15.8 million tonnes of coal in the current financial year.

 

In 2015 Eskom, whose generation capacity is around 45,000 megawatts, carried out controlled outages - known as load-shedding - as low cash flow and administrative problems affected operations.

 

The utility was also forced to cut power supplies for a few days in June due to a strike.

 

 

 

Australia's Fairfax gets green light to merge with Nine

Australia's Fairfax has got the green light from its shareholders to merge with television network Nine Entertainment in a massive shake-up of the nation's media industry.

 

Fairfax shareholders gave "overwhelming" support for the multi-billion dollar merger.

 

The deal was possible after Australia relaxed its media ownership laws last year.

 

The new business will be called Nine, losing the well-known Fairfax name.

 

Fairfax chairman Nick Falloon said the change was expected to be implemented on 7 December, subject to court approval.

 

The deal wraps in Nine's television network, one of the nation's biggest, and Fairfax newspapers including The Sydney Morning Herald, Melbourne's The Age and The Australian Financial Review.

 

It also includes Fairfax's many radio and digital assets, including news websites in other cities and property listings business Domain.

 

"Media consolidation provides significant potential by leveraging increased scale of audiences and marketing inventory to grow," Mr Falloon said in a statement.

 

Until last year's law changes, proprietors had been prevented from owning newspapers, radio and TV stations in the same city - a rule designed to protect media diversity.

 

Fairfax, which was founded in 1841, has struggled financially in recent years due to declining revenues.

 

Many current and former Fairfax employees had previously expressed sadness about the deal, with some raising concerns about whether it would compromise future journalism.

 

Fairfax chief executive Greg Hywood said on Monday: "Although it is the end of an era for the Fairfax corporate identity - independence is indelibly at the heart of our newsrooms and carries on into the future through our journalists."--BBC

 

 

 

Apec summit ends without statement over US-China division

An Asian economic summit has ended without a formal leaders' statement for the first time because of US-China divisions over trade.

 

Papua New Guinea's Prime Minister Peter O'Neill said "the two big giants in the room" had been unable to agree.

 

He said a chairman's statement for the Asia-Pacific Economic Cooperation (Apec) summit would be released later.

 

The US and China are engaged in trade war and revealed competing visions for the region at the summit.

 

In his closing comments, Mr O'Neill said Apec would try to ensure "free and open trade" in the region by 2020.

 

China v the US: Not just a trade war

What China wants from the Pacific

US to invest more than $100m in Asia

During the summit, the US said it would join Australia in developing a naval base in Papua New Guinea (PNG), in an apparent move to curb China's growing influence.

 

US Vice-President Mike Pence said the base would help "protect sovereignty and maritime rights in the Pacific islands".

 

On Saturday Chinese President Xi Jinping took a swipe at the US's America First policy by saying that countries that embraced protectionism were "doomed to failure".

 

Mr Pence later said he was prepared to "more than double" the tariffs imposed on Chinese goods.

 

He also criticised China's massive Belt-and-Road infrastructure programme, warning smaller countries that "opaque" Chinese development loans led to "staggering debt".

 

He urged countries to work with the US instead, saying the US did not "coerce, corrupt or compromise your independence".

 

Mr Xi insisted that there was no "hidden agenda" to the Belt-and-Road scheme.--BBC

 

 

 

Brexit turmoil: Small businesses 'fed up with the whole thing'

It's hard enough to run a small business at the best of times. But the Brexit talks are adding an extra level of stress for many entrepreneurs.

 

During the run-up to the referendum in June 2016, the BBC spoke to dozens of small business owners about the prospect of the UK leaving the European Union.

 

Almost two and a half years later, we got back in touch, to find out what they make of the show so far and the prime minister's draft Brexit agreement.

 

Stephen Britt's firm, Anchor Storage, organises warehousing and distribution for other companies. His Suffolk-based business employs 19 people.

 

Mr Britt voted to leave the European Union, but has become unhappy about the way the talks have been handled. "I'm getting increasingly sick and tired of the paucity of ambition of our Whitehall civil servants and the supine politicians who are in charge of them.

 

"I'm just really fed up with the whole thing, at how inadequate we've all been, in what should have been a relatively sensible, level-headed negotiation."

 

But despite his frustration, he would vote to leave again. The talks have proved, in his opinion, that the European Union is a "protectionist organisation" not interested in "making globalism work".

 

Kris Ingham is the founder and chief executive of Rejuvenation, a health drinks business. The London-based firm employs four people.

 

Kris, who voted to remain, says of the current situation: "It's carnage, but carnage from a political sense more than anything else.

 

"From a business perspective I still hold the same view, it's business as usual."

 

His company is planning to expand into Europe. "I'm more than happy to be involved in Europe, to have production in Europe and sales in Europe."

 

He always suspected the European Union would not make it easy for the UK to leave. "They kind of have to make this as protracted as possible to put off other nations doing this as well."

 

Shelley Lloyd's business sells staff relocation services. It was recently sold to a bigger organisation and is now called Celsium Powered by Brunel.

 

She voted to leave, but is having second thoughts. "Knowing what I know now, perhaps I would have voted to remain."

 

She thinks the negotiations have been managed badly and communication from the government has been poor.

 

"The government has repeatedly given the general public misinformation," she says.

 

Currently, she is helping clients work out how much extra it will cost after Brexit to keep EU nationals working in the UK, and UK workers in the European Union.

 

Ed Salt is managing director of dairy products firm Delamere Dairy. The Cheshire-based business employs 23 staff.

 

Mr Salt, who voted to remain, just laughs when asked what he makes of the current situation.

 

"We're still very hopeful of a deal going through," he says.

 

"A significant proportion of business owners and politicians really want to get a soft Brexit, rather than a hard Brexit and I think there was a will on both sides of the fence in Europe and the UK, but how we actually get there is unknown."

 

He has been making preparations in case a deal is not reached, including checking contracts, hedging against possible currency moves and perhaps switching some production to the European Union, so he can supply his clients there.

 

But his company has been unable to get extra warehousing space. "It's already pre-booked by people stockpiling," he says.

 

'Go backwards to go forwards'

Julie Price has been running her own insurance business, Julie Price & Co, for 30 years. The Hinkley-based firm employs five staff.

 

The Leave supporter expected negotiations to be difficult. "When you're negotiating anything you have to go backwards to go forwards."

 

She does not regret voting to leave, saying the European Union has "massive problems".

 

"When you've got 27 or 28 countries how are you all going to agree on something? It takes ages. Have you ever tried [to organise] a committee of over 10 people? You get nothing done," she says.

 

She is not worried by a hard Brexit, saying it won't be as bad as the 2008 financial crisis. "When the banks had that big wobble, that was massive."

 

Jennifer Brown runs her own luxury accessories business, Pampeano. The Oxford-based company has seven employees.

 

Ms Brown, who voted to remain, says about the latest turmoil: "It's very disappointing. There's still no clarity and it seems to be ever worse."

 

All of her raw materials are priced in dollars, so the weakness of the pound since the referendum has cut her profits by 30%.

 

"I had hopes earlier this week that there would be a definitive bounce in the pound, but no. It's still not happening. We seem to be in even more of a mess."

 

However, she is "delighted" that Theresa May's deal plans to keep the UK in a customs union in the short term, which is "essential" for her business.--BBC

 

 

 

UK shares remain fragile amid Brexit turmoil

The UK stock market has slipped lower amid the political fall-out from Theresa May's Brexit plan.

 

The FTSE 100 share index ended 0.3% lower at 7,013.88, with shares in UK-focused stocks such as banks and housebuilders continuing to slide.

 

However, the pound - which suffered its biggest fall for two years on Thursday - has stabilised.

 

Sterling was up 0.6% against the dollar at $1.2846, although it slipped 0.2% against the euro to €1.1258.

 

What has happened to the pound?

Despite the Prime Minister announcing on Wednesday that she had secured cabinet backing for the draft Brexit agreement with Brussels, the resignations of Brexit Secretary Dominic Raab and Work and Pensions Secretary Esther McVey on Thursday rattled markets.

 

On Thursday, the pound registered its highest volatility since the referendum in June 2016 as it fell 1.7% against the dollar and dropped 1.9% against the euro.

 

In the absence of any further resignations, the pound stabilised on Friday. But the stability may not last, analysts said.

 

"As long as 'no deal' remains as likely as it is, there is a risk of a sterling depreciation spiral that is self-intensifying," said Ulrich Leuchtmannan, a foreign exchange strategist at Commerzbank.

 

"Sterling volatility has woken up from its 100-year slumber and is likely to remain reactive."

 

May's deal 'better than no deal': Rolls boss

Brexit: Where we are in eight charts

Leading Brexiteers back PM amid Tory revolt

Why does sterling fall on Brexit nerves?

Laith Khalaf, senior analyst at Hargreaves Lansdown, said the pound was a barometer for the prospects of the UK economy.

 

"Every time we see a likelihood of a bad Brexit risk... the currency sells off," Mr Khalaf said.

 

The fall in the pound on Thursday which was the largest percentage fall in the currency since the vote to leave the EU in June 2016, when the pound slumped by 9.1% against the dollar.

 

That move was even greater than the slump on 21 October 2008, when the then governor of the Bank of England. Mervyn King, said the financial crisis meant the UK economy was heading into a recession.

 

James Bevan, chief investment officer at CCLA Investment Management, told the BBC's Today programme that there were some "interesting fundamentals" affecting the pound at present.

 

Among them are the slower economic growth in the UK than the EU and the US, which means that interest rates in the UK may not rise as quickly as those in other parts of the world. This makes the pound less attractive to investors.

 

What is happening to the stock market?

The FTSE 100 share index lost ground on Friday, ending 0.3% lower at 7,013.88, while the FTSE 250 - which is generally regarded as a closer barometer of the UK economy - also fell 0.4% to 18,589.09.

 

Mr Khalaf said the index of the biggest 100 companies on the stock market was protected from bigger falls by companies with large international operations.

 

"If you look at the headline performance of the market, the benchmark index, it hasn't really moved," said Mr Khalaf.

 

For instance, the biggest companies in the index, Shell and HSBC, both have large overseas operations that generate revenues in currencies such as dollars and euros which are worth more as the pound falls.

 

What is happening to individual share prices?

During Thursday, shares in companies that are heavily exposed to the UK economy saw the biggest falls, with housebuilders and banks being particularly hard hit. Royal Bank of Scotland fell over 3%, housing firms Persimmon and Taylor Wimpey fell over 2% and 1% respectively while Barratt Developments lost 0.5%.

 

Mr Khalaf calls such companies the "Brexit beasts" - ones which are more closely linked to the UK economy.

 

He gave the example of Lloyds Banking Group which was making a loss in 2011 and now makes billions of pounds of profits but is trading at a lower share price.

 

RBS is also being knocked by the possibility that if there was a general election and the Labour party took power, the bank could be fully nationalised.

 

What do businesses say?

Big businesses have been generally supportive of the draft Brexit agreement published on Wednesday.

 

The CBI's Chairs' Committee - the body's most senior policy-making committee - said it represented "hard-won progress".

 

It said the agreement had two essential economic benefits which must be achieved: avoiding a no deal cliff edge by delivering transition, and opening a route to a good long-term trade deal.

 

"The real life implications for people and regions across the UK are what really matter. Business urges all involved to assess the way forward on this basis," it added in a statement.

 

Earlier, Warren East, chief executive of engineering company Rolls-Royce, told the Today programme that time was running out and that any deal was better than leaving the EU without an agreement.

 

"I would, as a business leader, like to see politicians on both sides of the fence get on and negotiate a practical deal that works for business," he said.

 

Eyes are on businesses such as Rolls-Royce, which operate a "just-in time" model where parts arrive in the UK from across the EU as they are needed.

 

The head of the Co-operative Group has warned that availability of fresh food from both the UK and abroad could be hit by a no-deal Brexit.

 

Steve Murrells told BBC Radio 5 live that stockpiling was not an option as "there is not enough chilled capacity to do it".--BBC

 

 

 

Xi Jinping: US-China trade war will produce no winners

Countries which embrace protectionism are "doomed to failure", China's Xi Jinping has warned in a veiled swipe at the US's America First policy.

 

Mr Xi was speaking at the Asia-Pacific Economic Cooperation (Apec) summit, where US-Chinese tensions are likely to be centre stage.

 

US Vice-President Mike Pence later said he was prepared to "more than double" the tariffs imposed on Chinese goods.

 

The two countries have been engaged in a tit-for-tat trade war this year.

 

The White House says its tariffs are a response to China's "unfair" trade policies.

 

China v the US: Not just a trade war

What China wants from the Pacific

US to invest more than $100m in Asia

Both sides have said the tariffs, already totalling billions of dollars, can still be increased.

 

However, Mr Xi appeared to warn against any further escalation of tensions between the two countries.

 

"History has shown that confrontation, whether in the form of a cold war, a hot war or a trade war, will produce no winners," he told leaders gathered in Papua New Guinea's capital, Port Moresby, for the summit.

 

"Attempts to erect barriers and cut close economic ties work against the laws of economics and the trends of history.

 

"This is a short-sighted approach and it is doomed to failure," he added, warning that those who close their doors "will only cut himself off from the rest of the world and lose his direction".

 

But Mr Pence - who spoke at the forum directly after Mr Xi - said the tariffs were a response to the "imbalance" with China.

 

"The United States, though, will not change course until China changes its ways," he said.

 

His comments come a day after President Donald Trump told reporters he was confident a deal between China and the US "will be made".

 

However, he said a number of key issues had not been included on a list for negotiation ahead of next month's G20 summit in Argentina, meaning it was "not acceptable" yet to the president.

 

The president has made similar comments previously.--BBC

 

 

Rolls-Royce boss says May's Brexit deal is better than no deal

Politicians must get behind a "practical plan" for Brexit, the boss of engineering giant Rolls-Royce has said.

 

Warren East said time was running out and that any deal was better than leaving the EU without an agreement.

 

Rolls-Royce employs 22,300 people in the UK making aerospace, marine and submarine engines.

 

Mr East joined other business leaders in backing the draft plan put forward by Theresa May on Wednesday.

 

"The time since the referendum seems to have gone remarkably quickly and we're essentially [still] having a discussion we could have had the morning after the referendum," he told BBC Radio 4's Today programme.

 

"We are slightly running out of time and I would, as a business leader, like to see politicians on both sides of the fence get on and negotiate a practical deal that works for business."

 

May vows to see Brexit through

Pound and UK shares hit by Brexit turmoil

BBC correspondents on the draft deal

Like many other engineering firms, Rolls-Royce has supply chains that rely on smooth "just-in-time" delivery of thousands of parts from across the Channel.

 

Earlier this year Mr East called for "as little change as possible" from Brexit to minimise the impact on business. He said the firm would stockpile parts to protect against the risk of a no-deal Brexit that might interrupt the movement of supplies across borders.

 

He said Rolls-Royce would continue to pursue those contingency plans to ensure it could keep operating after 29 March.

 

Other business leaders have stepped forward to back Mrs May's draft Brexit plan following a conference call between executives and the Chancellor, Philip Hammond, on Wednesday aimed at rallying support within the business community.

 

But the pound came under pressure on Thursday as investors worried that Mrs May would not get the backing of parliament and that the stability of her government was at stake after a string of ministerial resignations.

 

In Friday trading in Asia the pound was slightly higher against the dollar at about $1.28.

 

Uncertainty around whether the draft deal will pass through parliament, whether the UK will fail to reach a deal at all, or whether further political upheaval will result in a general election, has left executives with no choice but to prepare for a range of scenarios.

 

BMW welcomed the draft document as a "positive step in the right direction" but also confirmed the carmaker would continue to prepare for "the worst-case scenario, which is what a no-deal Brexit would represent".

 

Mrs May's proposed deal would mean the UK would maintain roughly the same trading relationship with the EU until at least the end of 2020, while a more permanent arrangement is negotiated. That prospect is attractive to businesses eager to maintain trade without increased friction from border checks or tariffs.

 

"Most business people ultimately are pragmatists and this is about playing the cards we have been dealt rather than wishing for a better hand," Sir Roger Carr, chairman of BAE Systems, told the BBC.

 

'False choice'

However, Justin King, the former Sainsbury's chief executive who is now vice-chairman of private equity firm Terra Firma, argued it was not necessarily a binary decision.

 

"We've been presented with an entirely false choice: it's not a choice between this deal or no deal and crashing out of Europe. There's plenty of choice," he told Today.

 

"Business people are pragmatists, but they're also not fatalists. I think when you see that something is not going to be a good outcome, then you have to keep fighting for an alternative."

 

Mr King was one of some 70 business leaders who have called for a public vote on the UK's Brexit deal.

 

Meanwhile, the head of the Co-Operative Group has warned that availability of fresh food from both the UK and abroad could be hit by a no-deal Brexit.

 

Steve Murrells told BBC Radio 5 live that stockpiling was not an option as "there is not enough chilled capacity to do it".

 

The group, which also supplies chains such as Costcutter, would consider air freight or changing ports to to "keep the supply chain going as best as we can".

 

Mr Murrells also feared a lack of workers could affect supplies: "Farming relies on migrant labour and if the wrong outcome prevails there is going to be a real shortage of people to pick the crops."--BBC

 

 

Mark Zuckerberg, missing in inaction

Mark Zuckerberg is both chief executive and chairman of Facebook. In the wake of a damning New York Times report, he is facing renewed questions on whether he should relinquish at least one of those roles.

 

The Times’ report, which it said was based on interviews with more than 50 insiders, is extraordinary. Mr Zuckerberg is notable by his absence at times of major decision-making at the firm he founded as a college kid.

 

On the topic of whether Donald Trump, in calling for a ban on Muslims entering the US, had broken Facebook’s policies: “Mr Zuckerberg did not participate in the debate.”

 

On the issue of sharing data about to what extent the firm should share details of Russian meddling with the public, Mr Zuckerberg “did not participate in the conversations”.

 

And Alex Stamos, the firm’s now-departed head of security, is said to have been “alarmed” at Mr Zuckerberg’s lack of awareness of fake news. As Mr Zuckerberg brushed off the concern as a “crazy idea”, Mr Stamos knew very differently - but was reportedly later scolded for investigating without permission from his superiors.

 

(The company has now said in a blog post that it had never stopped Mr Stamos from looking into the issue. He asserted the same in a tweet.)

 

Fake news

In a conference call to journalists, Mark Zuckerberg laid out some concrete things the social network intends to do to improve how it deals with fake news and objectionable content, including:

 

tweaking the news feed algorithm to reduce distribution of sensational content

appointing an independent body to hear appeals about content that has been taken down

quarterly transparency reports on the amount and type of content that violates community standards

Sheryl Sandberg also responded to the criticisms in a blogpost.

 

But the revelations in the New York Times made for shocking reading - not least to Mr Zuckerberg, who repeatedly told journalists on Thursday that the first he had heard about most of these issues was by reading about it on Wednesday.

 

Mr Zuckerberg, who has spent the past two years filling his staff with Washington DC political veterans (and more recently, in Nick Clegg, European ones), said he was surprised to learn that his firm had employed underhand tactics to smear activists, put pressure on political opponents, and criticise rival firms.

 

That kind of behaviour "might be normal in Washington,” Mr Zuckerberg said, "but it’s not something I want Facebook to be associated with”. In 2017 Facebook spent $11.5m, and hired 11 lobbying firms, to push the company's interests in Washington.

 

Such efforts are now typical of Silicon Valley giants - Google spent $18m in the same period. But it was the actions of one firm, Definers, that took things a step further.

 

Mr Zuckerberg did not know, he said, that Definers was, on behalf of Facebook, allegedly pushing a narrative to journalists that an anti-Facebook campaign group, known as Freedom from Facebook, was secretly funded by George Soros. If you’ve ever been unfortunate enough to peer into the internet’s dirty basement, you’ll know conspiracies about Mr Soros, mostly with anti-Semitic undertones, are commonplace.

 

Mr Soros, as it turns out, is apparently not the wealthy backer behind Freedom from Facebook. His foundation denies it, calling the whole affair “reprehensible”.

 

According to Axios, the money is actually coming from David Magerman, a philanthropist and former hedge fund manager from Pennsylvania. He said he wanted to inform the public "about the risks of engaging with Facebook”.

 

Facebook accused of dark PR tactics

Prince William criticises social media

Facebook leaks take their toll

‘Someone on the communications team'

All this leaves us in a place where Mr Zuckerberg, who has repeatedly reassured us he is working hard to stop fake news, may have actually been responsible for funding some of it.

 

Facebook denied ever asking Definers "to pay for, or write, articles on Facebook’s behalf - or to spread misinformation". But the Times report draws a direct line between the PR firm and pro-Facebook articles appearing on the NTK Network, a "news" site with which it has direct ties.

 

During Thursday’s call with journalists, Mr Zuckerberg admitted he did not know the key details. He said he did not know what Definers’ activities were, or who at Facebook authorised that work. Probably “someone on the communications team,” he offered.

 

In answer to several questions - mostly along the lines of “how did you let this happen?” - he seemed to believe his ignorance was a defence, rather than an embarrassment.

 

“I learned about this relationship when I read The New York Times piece,” he repeated. “As soon as I read it, I looked into whether this is the type of firm that we want to be working with, and we stopped working with them.”

 

It’s apparent that Mr Zuckerberg’s team is keeping him out of the loop, or he’s choosing to remove himself from it. Either way, it isn’t entirely clear who is truly in charge at Facebook at this critical time for the company.

 

When asked if he considered stepping down as chairman of Facebook’s board, he said: "I don’t particularly think that that specific proposal is the right way to go.”

 

The decision would be his and his alone. Thanks to the firm's stock structure, he has absolute control over the company and its board.--BBC

 

 

 

EE and Virgin Media fined £13.3m for overcharging customers

EE and Virgin Media have been fined £13.3m by Ofcom for leaving customers who quit broadband and phone contracts early "out of pocket".

 

The regulator said about 400,000 EE customers who ended their contracts early were over-billed and paid up to £4.3m too much as a result.

 

Ofcom said about 82,000 Virgin customers were overcharged by almost £2.8m. Virgin said it would appeal.

 

Margot James, Digital Minister, said companies need "to play by the rules".

 

Gaucho Rasmussen, director of investigations and enforcement at Ofcom, said: "EE and Virgin Media broke our rules by overcharging people who ended their contracts early. Those people were left out pocket and the charges amounted to millions of pounds."

 

Fine 'not justified'

The fine for Virgin Media was £7m, Ofcom said, with an additional £25,000 for providing incomplete information to the regulator.

 

Ofcom found that Virgin Media had levied early-exit charges that were higher than customers had agreed to when signing up to their residential contracts. The regulator said this went on for almost a year.

 

However, Virgin Media said it "strongly disagrees" with Ofcom's decision and would appeal to the Competition Appeal Tribunal.

 

"This decision and fine is not justified, proportionate or reasonable. A small percentage of customers were charged an incorrect amount when they ended one or more of their services early and for that we are very sorry," said Tom Mockridge, chief executive of Virgin Media.

 

Virgin Media said it had mistakenly overcharged 1.5% of its 5.5 million cable customers between September 2016 and August 2017.

 

The company has reimbursed or made charity donations covering 99.8% of its overcharging.

 

John Jones, from Hatfield in Hertfordshire, a Virgin Media customer for seven years, arranged to terminate his account when he moved house and the firm said it did not service his new address.

 

Virgin told him he would have to pay a "breaking contract charge" of £240.

 

"That was in spite of the fact that I had been a customer of theirs for seven years, wanted to continue using their services, but could not do only because they did not service my new address," he says.

 

His attempts to get Virgin to remove the charge were unsuccessful and he agreed to pay as he did not want his credit rating to be affected.

 

The charge was due to be taken in January last year by direct debit, but Virgin did not take it until the 16 February. But on 9 February, Virgin Media made a so called "derogatory report" to credit reference agencies saying John had let his account fall into arrears.

 

John says this had "a devastating effect" on his credit rating.

 

His rating with Equifax fell from excellent to fair, whilst his rating with Experian dropped from excellent to poor.

 

"It took me 10 phone calls and emails over a period of 29 days to get Virgin Media's credit control section to agree to correct their error with the Credit Reference Agencies.

 

"Although they have recovered since, my credit ratings have yet to get back to the levels they were before this event happened," he says.

 

Customers yet to be repaid

EE apologised to customers after it was fined £6.3m following Ofcom's discovery that over a six-year period the firm did not set out the charges its mobile customers would have to pay if they left their contracts early.

 

Ofcom said that up to 15 million EE customers faced being over-billed by up to £13.5m as the company had miscalculated early-exit charges. However, not all affected customers had paid these excessive charges as EE had subsequently waived some of them, leaving £4.3m in excessive charges.

 

A spokesperson for EE said: "We've already refunded customers and changed the way we calculate early termination charges, and we will continue to focus on ensuring our policies are clear and fair for all customers."

 

However, Ofcom said that £1.6m of the £4.3m of the overcharged fees had not been repaid as EE did not have records covering the whole period. Customers who feel they may have been overcharged should contact EE.

 

'Play by the rules'

Digital Minister Margot James said: "We've strengthened Ofcom's powers to better protect consumers and these fines show the issue is being taken very seriously and strong action will be taken.

 

"Companies need to play by the rules and treat their customers fairly and honestly," the minister said.

 

Gillian Guy, chief executive of Citizens Advice, said: "Anyone who has been affected by this deserves a refund.

 

"This is another in a long line of failings in the mobile and broadband industry - we need an independent consumer champion to stick up for customers and stop this from happening."

 

Ofcom said the behaviour of both companies made customers less likely to switch provider, which was against its rules.--BBC

 

 

 

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


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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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