Major International Business Headlines Brief::: 21 November 2018

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Major International Business Headlines Brief::: 21 November 2018

 


 

 


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*  Tanzanian exchange bureaus raided on suspicion of money laundering

*  South Africa's rand edges weaker in cautious early trade

*  Ivory Coast inflation rises to 0.8 pct year-on-year in October

*  Gold steady in slow trading, muted dollar supports

*  Uganda to make new telecoms investors share infrastructure

*  IMF says optimism in South Africa's economic recovery fading

*  Steinhoff promotes commercial director to CEO, shares leap

*  Zimbabwe to let gold, platinum mines retain higher dollar earnings

*  Carlos Ghosn : Renault names interim chief executive

*  Markets drop as tech slowdown fears grow

*  US says China has 'not altered' unfair trade practices

*  Glamour magazine to go online only in the US

*  US adviser hints at evicting China from WTO

*  Sugar tax on soft drinks raises £154m

*  Brexit fears fail to dent EasyJet bookings

*  Migrant workers send home £8bn to families

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

Tanzanian exchange bureaus raided on suspicion of money laundering

DAR ES SALAAM (Reuters) - Tanzania’s central bank conducted a surprise
inspection of foreign exchange bureaus in a crackdown on black market
currency trading and money laundering, it said on Tuesday.

 

Soldiers and other security forces took part in Monday’s operation in the
northern town of Arusha, a tourism and gemstone trading hub, so different
bureaus could be inspected at once, a statement said.

 

“There has been an increase in illegal foreign exchange bureaus and money
laundering activities that have been conducted through foreign exchange
bureaus,” central bank Governor Forens Luoga said, adding that it was a
“vast and powerful network”.

 

Tanzania has 110 licensed foreign currency bureaus, the bank said.

 

Opposition leaders accused the government of unduly involving the military
in the economy after it deployed the army earlier this month to collect the
cashew nut harvests after rejecting low prices offered by private buyers.

 

“I am deeply shocked by the deployment of soldiers at all foreign exchange
bureaus in Arusha,” Zitto Kabwe, the leader of the opposition ACT-Wazalendo
party, said on Twitter.

 

“The military should only be deployed in special emergencies, such as
defence of the constitution and the country’s borders,” Kabwe said.

 

The central bank suspended issuance of new licenses for foreign exchange
bureaus over the past three months to conduct thorough inspections of
existing foreign exchange retail bureaus, Luoga said.

 

“All those found to be operating illegally will have their licences
revoked,” said the governor.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa's rand edges weaker in cautious early trade

JOHANNESBURG (Reuters) - South Africa’s opened weaker on Tuesday in tetchy
overnight trade as caution ahead of inflation data and a lending rates
decision by the central bank later in the week curbed big bets.

 

* At 0650 GMT the rand was 0.11 percent weaker at 14.0500 per dollar, edging
down after briefly breaking to a 1-1/2 week best of 13.9200 overnight.

 

* The rand has battled to hold below the psychological 14.00 resistance
level after a rally last week spurred by a dollar plunge and political chaos
in Britain that boosted most emerging market currencies.

 

* With consumer price-growth figures on Wednesday expected to tick higher
and the local central bank’s rates decision the day after set to be a close
call, the rand has been caught in a thin range with traders resisting big
calls.

 

* “Although risk sentiment favours EM-currency gains, the rand seems to lack
the short-term momentum to push meaningfully lower against the majors, as
the local market prices for two-way risk ahead of Thursday’s MPC decision,”
RMB Nema Ramkhelawan-Bhana said in a note.

 

* In a Reuters poll conducted last week, 16 of 26 economists said the
Reserve Bank would keep its repo rate at 6.50 percent while the rest
forecast a 25 basis-point hike.

 

* Bonds were also weaker, with the yield on the benchmark 2026 government
bond up 1 basis point to 9.12 percent.

 

* Stocks were set to open higher at 0700 GMT, with the JSE securities
exchange’s Top-40 futures index up 1.14 percent.

 

 

 

Ivory Coast inflation rises to 0.8 pct year-on-year in October

ABIDJAN (Reuters) - Consumer price inflation in Ivory Coast rose to 0.8
percent year-on-year in October, up from 0.5 percent in September, data from
the National Statistics Institute showed on Monday.

 

Food and soft drink prices in the world’s top cocoa producer rose 0.5
percent year-on-year, while housing and utilities prices jumped 3.1 percent.
Transport costs rose 1.2 percent.

 

Ivory Coast’s economy accounts for around 40 percent of the eight-nation
West African CFA franc currency zone.

 

 

Gold steady in slow trading, muted dollar supports

BENGALURU (Reuters) - Gold prices were steady on Tuesday, after moving in a
tight range in holiday-thinned trading, holding above the 1,220 level as the
dollar was pressured by weak U.S. economic data and a clouded interest rate
outlook.

 

Spot gold was little changed at $1,224.45 per ounce at 0735 GMT.

 

U.S. gold futures were flat at $1,224.8 per ounce.

 

“The market is very quiet today and appears to be in a holiday mood ahead of
the U.S. Thanksgiving,” said Peter Fung, head of dealing at Wing Fung
Precious Metals in Hong Kong.

 

“The dollar has come under some pressure giving some support to gold.”

 

The dollar index, which measures the greenback against a basket of six major
currencies, was trading near an over one-week low that it hit in the
previous session. [USD/]

 

The currency came under pressure as U.S. Federal Reserve officials cautioned
on the global growth outlook and weak data at home, pointing to a
potentially slower pace of rate hikes.

 

The Fed is still expected to raise interest rates again next month and three
times next year, but a strong majority of economists polled by Reuters over
the past week say the risk is it will slow that pace down.

 

“The Feds have changed the landscape to a more dovish terrain suggesting
that they too are turning a little bit risk-averse,” Stephen Innes, APAC
trading head at OANDA in Singapore, said in a note.

 

Higher U.S. interest rates tend to boost the dollar and also push up bond
yields, reducing the appeal of non-yielding bullion.

 

“Trade tensions remain heightened between the U.S. and China, global
equities are under pressure, while Brexit negotiations continue to create
uncertainty across markets, keeping gold’s safe-haven status intact,”
traders at MKS PAMP said in a note.

 

In a veiled criticism of Washington that further sours the tone of
China-U.S. ties ahead of a G20 meet, a top Chinese diplomat said on Monday
that the APEC summit’s failure to agree on a communique resulted from
certain countries “excusing” protectionism.

 

Spot gold may test a support at $1,211 per ounce, a break below which could
cause a loss to $1,202, said Reuters technical analyst Wang Tao.

 

Meanwhile, holdings at SPDR Gold Trust, the world’s largest gold-backed
exchange-traded fund, rose 0.16 percent to 760.86 tonnes on Monday.

 

Among other precious metals, silver was down 0.2 percent at $14.40 an ounce.

 

Palladium climbed 0.6 percent to $1,169.10 per ounce, while platinum rose
0.2 percent to $854.60 per ounce.

 

 

 

Uganda to make new telecoms investors share infrastructure

KAMPALA (Reuters) - Uganda will force new investors in telecommunications
services to rent capacity from existing fibre optic cables, rather than lay
their own, to stem infrastructure duplication and lower internet access
costs, the sector regulator said on Tuesday.

 

The East African nation’s telecoms sector has attracted foreign investors in
recent years due to rapid economic growth, a young population and general
political stability.

 

The requirement for infrastructure sharing is part of a new national
broadband policy that seeks to boost efficiency and extend high speed
internet access to the population.

 

“We need infrastructure sharing, if we already have cables in an area, don’t
put there another one so that we don’t duplicate these things,” Godfrey
Mutabazi, CEO of regulator Uganda Communications Commission (UCC), told
Reuters.

 

Exemptions will be made for investors willing to lay cables in sparsely
populated rural areas to boost the spread of internet access, he said.

 

Uganda has about 12,000 kilometres of fibre-optic cable laid, according to
the government, and new investors will rent capacity at agreed commercial
rates, Mutabazi said.

 

But the laying of separate cables by different firms has resulted in high
costs for erecting and maintaining the infrastructure, under-utilisation of
capacity on the cables and high internet costs, Mutabazi said.

 

The largest telecoms operator, MTN Uganda, a unit of South Africa’s MTN
Group has a cable network that lies alongside those of Bharti Airtel, and
American technology giants Google and Facebook.

 

The government also operates a national broadband internet cable network
developed with a Chinese loan.

 

There are about 24 million mobile phone subscribers in Uganda and an
estimated 17 million internet users, UCC said.

 

Kyle Spencer, executive director of Uganda Internet Exchange Point (UIXP), a
non-profit organisation that interconnects data from one operator’s cable to
others, told Reuters the new policy stance was retrogressive and would
create infrastructure monopolies, hampering the sector’s development and
cutting jobs.

 

He said bandwidth costs in Uganda had declined from $5000 per megabyte per
second in 2009 to the current $10 per megabyte per second.

 

“The system is not broken and the reason that (price decline) has happened
is because there’s been significant amounts of competition in infrastructure
and service,” he said.

 

“The market has worked.”

 

 

 

IMF says optimism in South Africa's economic recovery fading

JOHANNESBURG (Reuters) - South Africa’s economic recovery plans face serious
constraints with growing debt of state firms domestically and capital
outflows as a result of global trade tensions, the International Monetary
Fund (IMF) said on Monday.

 

In October the global lender said it saw Africa’s most industrialised
economy expanding by 0.8 percent in 2018, down from a prior forecast of 1.5
percent. South Africa’s Treasury predicts growth of 0.7 percent.

 

The recession-bound economy and a bleak budget in October have piled
pressure on President Cyril’s Ramaphosa.

 

“Some of the initial optimism has dissipated as growth remains stuck in low
gear and reform implementation has faced constraints,” the IMF said, naming
the state power firm Eskom as a key risk.

 

The president’s work is made harder by cash-strapped state-owned firms,
including debt-ridden Eskom, which is struggling to supply the nation’s
power.

 

The IMF said the proposal to amend property laws to allow for expropriation
without compensation should be carefully considered and be guided by lessons
of international experience.

 

“Land reform should focus on enhancing agricultural productivity and
strengthening tenure security,” said the IMF.

 

A parliamentary team has recommended a constitutional amendment to make it
possible for the state to expropriate land without compensation. The
recommendation will now go to the national assembly for a vote.

 

 

 

Steinhoff promotes commercial director to CEO, shares leap

JOHANNESBURG (Reuters) - Steinhoff has appointed commercial director Louis
du Preez, a key figure in its attempts to recover from a financial crisis,
as its permanent chief executive, sending shares in the South African
retailer as much as 15 percent higher on Monday.

 

Du Preez will replace acting CEO Danie van der Merwe, who will step down at
the end of December, a year after the retailer revealed a
multibillion-dollar hole in its finances.

 

“It is not too surprising who they have gone for given his role in driving
the restructuring and this would be seen as a positive,” said Mark Hodgson,
equities trader at Avoir Capital Markets.

 

At 1355 GMT, Steinhoff’s shares were up 8.7 percent at 1.99 rand, after
earlier trading a higher as 2.14 rand.

 

Du Preez joined the Steinhoff group in mid-2017 and was nominated as
commercial director and member of the management board on Dec. 19. He has
jointly led negotiations in the restructuring of the group, the retailer
said.

 

Steinhoff’s former permanent CEO Markus Jooste, who resigned after the
scandal broke, is being investigated by South African authorities over the
crisis that wiped more than 90 percent off the company’s market value and
forced it to sell assets.

 

Creditors agreed in July to hold off on their debt claims for three years,
throwing the company a lifeline and giving it three months to start
restructuring its debt.

 

Steinhoff in October asked creditors for a one-month extension while it
negotiates documents required for the restructuring.

 

“He is the ideal candidate to lead the company through the final stages of
the restructuring and into the next phase of its development,” Chairperson
Heather Sonn said of du Preez.

 

Steinhoff also said it planned to launch a so-called company voluntary
arrangement (CVA) in relation to its Steinhoff Europe AG (SEAG) business.

 

CVAs allow retailers to avoid insolvency or administration by offloading
unwanted stores and securing reduced rents on others. They have been adopted
by British groups including fashion chain New Look.

 

The SEAG business includes home furnishings chain Conforama, Pepco and
variety store chain Poundland among others.

 

 

 

Zimbabwe to let gold, platinum mines retain higher dollar earnings

HARARE (Reuters) - Zimbabwe will allow gold and platinum mining companies to
retain up to 55 percent of their earnings in dollars, government and central
bank officials said on Monday, as authorities in the southern African nation
move to ensure operators remain viable.

 

Mining accounts for more than two-thirds of Zimbabwe’s export earnings but
the sector has seen some companies close due to a dollar crunch that has
hobbled imports of spare parts and other consumables.

 

Deputy mines minister Polite Kambamura said gold producers that sell their
output to a central bank refining subsidiary would now keep 55 percent of
their sales in dollars, up from 30 percent previously.

 

The threshold should gradually increase to 70 percent, he said.

 

Central bank governor John Mangudya said the U.S. dollar retention levels
for platinum and chrome miners had been increased to 50 percent from 35
percent.

 

“We have made a decision that there is viability in mining by making sure we
don’t kill the goose that lays the golden egg,” Mangudya said during the
publication of the results of a survey on the state of mining.

 

Mangudya, without giving details, said the central bank would create a
special fund to help mining companies with extra U.S. dollar requirements.

 

The survey results showed that although mining executives were positive
about the industry’s prospects in 2019, they were pessimistic about the
government’s ability to maintain predictable and consistent mining policies.

 

 

Carlos Ghosn : Renault names interim chief executive

Renault has appointed a temporary deputy chief executive to take over the
running of the French car firm following the arrest of Carlos Ghosn.

 

Renault said its chief operating officer, Thierry Bolloré, would step up to
the role because Mr Ghosn was "temporarily incapacitated".

 

Following an emergency board meeting, Renault said Mr Ghosn would remain as
its chairman and chief executive.

 

But it said Mr Bolloré would lead the firm with the same powers as Mr Ghosn.

 

Mr Ghosn was arrested in Japan on Monday after allegations of financial
misconduct.

 

Simon Jack on the rise and fall of Ghosn

Carlos Ghosn: The driven 'cost killer'

The corporate scandals that rocked Japan

As well as Renault, he is also chairman of both Nissan and Mitsubishi Motors
and leads an alliance of the three carmakers.

 

Japanese prosecutors say Mr Ghosn under-reported his income from running
Nissan by 5bn yen (£34.5m) over five years.

 

On Tuesday evening, Renault said: "At this stage, the board is unable to
comment on the evidence seemingly gathered against Mr Ghosn by Nissan and
the Japanese judicial authorities."

 

Meanwhile, the Financial Times reports that Mr Ghosn was planning a merger
between Renault and Nissan but that the Japanese company was opposed to a
deal.

 

Mr Bolloré is already in charge of many day-to-day activities at Renault.

 

The company said its decision to name him as deputy chief executive was a
"transitional governance" measure "to preserve the interests of the group
and the continuity of its operations".

 

Earlier, French Finance Minister Bruno Le Maire said Mr Ghosn was "no longer
in a position" to lead the carmaker in which the French state has a 15%
stake.

 

He also said Renault's partnership with Nissan remained in the interests of
both France and Japan and of both companies.

 

Nissan and Mitsubishi are both preparing to remove him from his posts.

 

But Mitsubishi Motors chief executive Osamu Masuko said the alliance would
be difficult to manage without Mr Ghosn.

 

Nissan has a 34% controlling stake in the smaller Japanese carmaker.

 

What has happened so far?

In a press conference on Monday, Nissan said an internal investigation
prompted by a whistleblower had revealed "significant acts of misconduct"
including "personal use of company assets".

 

The announcement sent shockwaves through the automotive industry where Mr
Ghosn, 64, is seen as a titan, responsible for a dramatic turnaround at
Nissan in the early 2000s.

 

Nissan chief executive Hiroto Saikawa said "too much authority was given to
one person in terms of governance".

 

"I have to say that this is a dark side of the Ghosn era which lasted for a
long time," he said, adding he was still debating whether Mr Ghosn was "a
charismatic figure or a tyrant".

 

What are the accusations?

Prosecutors later said in a statement that Mr Ghosn and senior executive
Greg Kelly had conspired to understate Mr Ghosn's compensation, starting in
2010.

 

Mr Ghosn is accused of filing annual securities reports containing fake
statements, which could mean up to 10 years in prison, or a fine of 10m yen,
or both.

 

>From 2010, Japanese firms have been required to disclose the salaries of
executives who earn more than 100m yen.

 

Japanese prosecutors also said they had already raided Nissan's Yokohama
headquarters, near Tokyo, as part of their investigation.

 

There has been no comment from Mr Ghosn or Mr Kelly.

 

How will this affect the Alliance?

As misconduct revelations emerged, the future of the car alliance led by Mr
Ghosn remained unclear.

 

He has been credited with turning around both Nissan and Renault before
becoming the linchpin of the alliance the companies later formed.

 

The Renault-Nissan-Mitsubishi Alliance sold 10.61 million passenger cars and
light commercial vehicles in 2017, making it the number-one automotive group
worldwide.

 

Nissan chief executive Mr Saikawa insisted the partnership would "not be
affected by this event".

 

 

Markets drop as tech slowdown fears grow

A sell-off on Wall Street continued on Tuesday, amid steep declines in oil
prices and losses among technology shares.

 

The Dow Jones Industrial Average shed 550 points to close 2.2% lower,
weighed down by Apple, whose share price plunged by nearly 5%.

 

The broader S&P 500 dropped 1.8%, while the tech-heavy Nasdaq index fell
1.7% to its lowest level since February.

 

Meanwhile, benchmark oil prices sank nearly 7%, close to one-year lows.

 

Apec: A family feud with no end in sight

A quick guide to the US-China trade war

What's driving the drop?

Connor Campbell at Spreadex described the sell-off as a "macro-car crash,
with Brexit fears, the post-Apec pre-G20 US-China trade war flare-up and the
continuation of a nasty US tech sell-off resulting in absolute carnage".

 

It also reflects underlying concerns about slowing global growth, according
to Nariman Behravesh, chief economist at IHS Markit.

 

In the US, a robust economy had so far largely shielded stock markets from
some of those worries.

 

However, Mr Behravesh said investors now expect a boost from tax cuts and
increased government spending to fade.

 

"This stimulus will wear off by late 2019 and early 2020, and the US economy
will join the others in seeing a significant loss of speed," he said.

 

 

What spooked investors on Tuesday?

US retailers were punished for weak results and forecasts, with shares in
Target sinking 10%, while Kohl's tumbled 9% and Walmart was dragged almost
3% lower.

 

Analysts at Goldman Sachs cut their price target for Apple shares from $209
to $182, blaming very weak demand from China in the late summer as well as a
stronger US dollar.

 

Michael O'Rouke at Jonestrading said retailers as well as big technology
firms such as Amazon and Facebook had pushed the market higher for most of
this year.

 

"Now that's fading, so people are more apt to take profit and de-risk going
into the year-end. There are the headwinds of the trade war out there. The
fiscal stimulus from tax cuts is starting to fade ... we don't have many
positive catalysts," he said.

 

The balloons will soon be inflated for the Thanksgiving Day parade just as
the air seems to be coming out of the US markets.

 

Tuesday's sell-off seemed to be sparked by disappointing earnings from
several retailers.

 

Aside from that, Wall Street traders offered up several reasons for the
recent volatility.

 

One was President Trump's trade war with China. Any escalation could hurt US
and Chinese companies by raising production costs and the price for
consumers.

 

Another was the prospect that America's central bank could raise interest
rates to combat inflation and stop the economy from overheating. This makes
it more expensive for companies to borrow and invest.

 

Whatever is behind the latest stock market gyrations, it's worth remembering
that the current bull market is the oldest in history.

 

For months some have warned that the US market is overvalued. In which case
what you may be witnessing is a shift as investors move from chasing yield -
financial jargon for the return on their investment - to managing risk.

 

 

What impact will this have globally?

The US market falls extended declines in Europe.

 

In London, the FTSE 100 index slipped back below 7,000 points. The DAX index
in Frankfurt fell 1.5%, while in Paris, the CAC 40 was 1.2% lower.

 

IHS Markit said the market swings are starting to hurt business sentiment
and capital spending.

 

But analysts at Oxford Economics said they think the effect on consumer
spending - the biggest economic driver in the US - is likely to be
relatively muted.

 

The firm wrote: "This doesn't mean the economy is insulated from stock
market movements, but rather that so long as those movements don't
excessively weigh on confidence, employment and income, consumers can be
expected to continue spending."

 

What will stop the fall?

Since market turmoil emerged in earnest in October, all three major US
indexes have largely given up the gains made earlier in 2018.

 

Oil prices for the major benchmarks are also down about 30% since last
month.

 

On Tuesday, Brent crude fell by 6.5% to $62.58 a barrel while West Texas
Intermediate shed 6.8% to $53.41 a barrel.

 

Hans Redeker at Morgan Stanley commented: "For the US equity market to
stabilise, either the rest of the world will have to show better growth or
the Fed will have to moderate its stance."--BBC

 

 

 

US says China has 'not altered' unfair trade practices

The Trump administration has accused China of not changing its "unfair"
practices, inflaming a trade dispute between the world's two largest
economies.

 

In an update to a March report, the US said China had failed to alter its
"unreasonable" practices.

 

The US has, along with other countries, long criticised Beijing over its
trade policies.

 

The move raises tensions ahead of a high-stakes leaders meeting this month.

 

US hints at evicting China from WTO

US President Donald Trump and Chinese President Xi Jinping are due to meet
on the sidelines of the G20 summit in Argentina. Their meeting will be
closely watched for any progress on resolving the bitter trade dispute.

 

But the latest comments from the US could make negotiations more difficult.

 

'Strengthened monitoring'

"China has not fundamentally altered its unfair, unreasonable, and
market-distorting practices," US Trade Representative (USTR) Robert
Lighthizer said in a statement on Tuesday.

 

The findings are part of an investigation into Beijing's intellectual
property and technology transfer practices, which has prompted tariffs on
billions of dollars worth of Chinese goods.

 

Mr Lighthizer said the updated report was part of the Trump administration's
"strengthened monitoring and enforcement effort".

 

The report said despite the relaxation of some foreign ownership
restrictions, "the Chinese government has persisted in using foreign
investment restrictions to require or pressure the transfer of technology
from US companies to Chinese entities".

 

A quick guide to the US-China trade war

China vs the US: Not just a trade war

What is a trade war?

So far, the US has imposed three rounds of tariffs on Chinese goods,
totalling more than $250bn (£195.5bn).

 

Beijing has struck back. It's accused the US of starting "the largest trade
war in economic history" and imposed tariffs on $110bn worth of American
goods.

 

Comments from both sides have frustrated the hopes of easing tensions at the
upcoming G20 meeting.

 

For the first time in its history, an Asian economic summit last weekend
failed to conclude with a joint leaders statement because of US-China
divisions over trade.

 

A top Chinese diplomat said the failure of Apec officials to agree on a
communique was a result of certain countries "excusing" protectionism, a
veiled threat at Washington, Reuters reports.

 

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

 

 

Glamour magazine to go online only in the US

Media giant Condé Nast has said it will stop printing monthly editions of
its 80-year-old Glamour magazine in the US and move entirely online.

 

Editor in chief Samantha Barry said the fashion and lifestyle magazine would
target audiences "on the platforms they frequent most".

 

The magazine will print a "collectible, glossy" issue twice a year.

 

The print media industry globally faces dwindling advertising sales and
tough competition from online publications.

 

Last year, the UK edition of Glamour also said it was going "digital first".

 

A spokesperson told the BBC then that the publication was taking its lead
from its readers, largely women aged 20 to 54.

 

Wintour staying at Vogue 'indefinitely'

'Doubling down on digital'

The last monthly publication of Glamour in the US will be its January 2019
edition.

 

The magazine said it was "doubling down on digital, expanding video and
social storytelling with new and ambitious projects".

 

Barry, who became editor in chief last January, said: "Our storytelling and
service will continue to reach Glamour's audience on the platforms they
frequent most - which means we're going to use print the way our audiences
do - to celebrate big moments with ambitious special issues rather than on a
monthly basis."

 

Johnston Press runs out of paper

How digital publishers are shaking up the book industry

Condé Nast, which publishes a host of magazines including Vogue and GQ, has
also shut down its regular print publications of Self magazine and Teen
Vogue.

 

The US group, owned by Advance Publications, lost around $120m (£93.8m) last
year, the Financial Times reported, citing sources.

 

The firm plans to continue publishing print editions of several other
magazines, however, including Vogue, Vanity Fair, Wired and the New Yorker,
said American entertainment trade magazine, Variety.--BBC

 

 

US adviser hints at evicting China from WTO

One of President Trump's top economic advisers has suggested there could be
a case for "evicting China" from the World Trade Organisation (WTO).

 

In a BBC interview, Kevin Hassett chairman of the president's Council of
Economic Advisers said China had "misbehaved" as a member of the WTO.

 

He also claimed that the US had been failed by the organisation.

 

But Mr Hassett said that what he called the President's hardball strategy on
international trade is working.

 

On the WTO, President Trump's administration has taken an approach that many
others see as disruptive.

 

It poses a significant challenge to the WTO's ability to settle disputes
between member countries about alleged breaches of its rules.

 

A key element in the WTO disputes system is a body which considers appeals
against initial rulings by dispute panels. The US has obstructed new
appointments when members' terms expire and that is making it increasingly
difficult for the body to function.

 

Damage

Dr Hassett said the WTO played a very important historic role in helping
modernise the world. But he also thought that it had failed the US in many
ways.

 

He said the US generally wins the cases it brings to the WTO but "it takes
five or six years and then the damage is done".

 

He said the WTO needs to be better able to deal with countries that don't
obey the rules and are willing to lose at the WTO because the penalties are
so low.

 

One country has featured prominently in President Trump's trade agenda, and
Kevin Hassett continued with that theme: "We never really envisioned that a
country would enter the WTO and then behave the way that China has. It's a
new thing for the WTO to have a member that is misbehaving so much."

 

Removing China

The question he argued is whether that can fixed through bilateral
negotiation, by reform of the WTO or even, by removing China from the WTO.

 

The last of those is a not official US policy. It was the final, least
preferred, of three options that Dr Hassett listed and he expressed it as a
question: "Should we pursue evicting China from the WTO?"

 

It might not even be possible. But it is a startling suggestion to hear from
a senior figure in the US administration.

 

It is certainly in keeping with a general approach to international trade
has been much more assertive- many say confrontational - than that of
President Trump's predecessors.

 

Protectionism

In his first two years he has imposed tariffs - import taxes - on steel and
aluminium and on a swathe of goods from China. He pulled the US out of one
trade agreement, the Transpacific Partnership, and embarked on the
renegotiation of another, the North American Free Trade Agreement, (NAFTA),
which concluded earlier this year.

 

Many of President Trump's critics see much of this as protectionism.

 

But Dr Hassett says that President Trump wants to see barrier-free trade
with every country on earth.

 

Hardball

When he took office, the US had opened up to other countries "no questions
asked". The US, he said, found itself in a situation where it has lower
barriers to trade than its partners.

 

He said Presidents Clinton, Obama and the two Bushes had all wanted to
improve that situation and had failed.

 

President Trump came into the White House with what Dr Hassett called a very
hardball strategy, but he said "I think it is clearly working".

 

He pointed to the replacement for NAFTA and said the US is in negotiations
with virtually all its trading partners now. "That's an enormous amount of
progress".

 

He didn't accept the idea that the new tariffs are bad for Americans.
Another former economic adviser to President Trump, Gary Cohn, has described
them as a tax on consumers

 

Dr Hassett said that on China specifically the tariffs have been designed to
cause minimum harm at home and put maximum pressure on China.

 

He said that has been very effective and the Chinese are now coming to the
table. He said he was very hopeful that President Trump and President Xi
would have productive talks when they meet at the forthcoming G20
summit.--BBC

 

 

 

Sugar tax on soft drinks raises £154m

The new sugar tax on soft drinks has raised £153.8m since it was introduced
in April, the government has said.

 

The figure, which covers the period to the end of October, means the tax is
on track to raise the estimated proceeds of £240m for the full year.

 

The new tax is applied to soft drinks with a certain amount of sugar per
litre.

 

Health officials have warned that more action could be taken against the
food industry unless it cuts sugar further.

 

Public Health England (PHE) says if the food industry has not made enough
progress on sugar reduction it could face further measures.

 

PHE has been working to cut sugar and calories in everyday foods, such as
breakfast cereals, yogurts, pizzas and ready meals, by 20%.

 

Its latest survey found 90% of the public said they supported the government
working with industry to make food and drinks healthier.

 

But most think the responsibility for tackling obesity lies primarily with
individuals themselves and families.

 

The clampdown on sugar use has seen certain leading brands, including Fanta,
Ribena and Lucozade, cut the sugar content of their drinks.

 

The introduction of the levy means the UK joins a small handful of nations
that have introduced similar taxes, including Mexico, France and Norway.

 

How does the tax work?

The levy is applied to manufacturers - whether they pass it on to consumers
or not is up to them. There are 457 producers registered for the levy.

 

Drinks with more than 8g per 100ml face a tax rate equivalent to 24p per
litre.

 

Those containing 5-8g of sugar per 100ml face a slightly lower rate of tax,
of 18p per litre.

 

Pure fruit juices are exempt as they do not carry added sugar, while drinks
with a high milk content are also be exempt due to their calcium content.

 

Originally, the Treasury forecast it would raise more than £500m a year, but
that has now been reduced to £240m because some manufacturers have reduced
the sugar content in their products.

 

In England that income is being invested in school sports and breakfast
clubs.

 

Products such as cakes, biscuits and other foods are not covered by the tax,
although a separate initiative is encouraging manufacturers to reduce the
sugar content of those items voluntarily.--BBC

 

 

 

Brexit fears fail to dent EasyJet bookings

Fears of Brexit disruption have failed to deter passengers from booking
flights next summer with EasyJet.

 

Bookings were "promising" and slightly ahead of summer this year, with half
its seats sold for the first half of 2019, the airline said.

 

Pre-tax profits soared 41% to £578m for the year to 30 September.

 

Chief executive Johan Lundgren said the airline had been preparing for
Brexit for the past two years by considering "every possible scenario".

 

He was adamant that flights would continue operating in April even if there
was a no-deal scenario.

 

The company has established EasyJet Europe, headquartered in Vienna, which
will enable EasyJet to continue to operate flights both across the EU and
domestically within EU countries regardless of the Brexit outcome.

 

EasyJet's profits rose despite it spending £40m on expansion at Tegel
airport in Berlin after buying parts of Air Berlin and £65m on IT costs.

 

The airline flew a record 88.5 million passengers in the past year, up
10.2%, and revenues rose 16.8% to £5.9bn.

 

EasyJet plans to increase capacity by about 10% for the 2019 financial year.

 

The company said revenues per seat - a key metric for airlines - would fall
in the first half of the current financial year due to factors including the
timing of Easter.

 

Mr Lundgren said he had no interest in buying FlyBe, the struggling regional
airline seeking a buyer.

 

Investor caution

Shares in Easyjet fell 3.7% to £11.29 - far below the near-£18 they were
trading at in June - making them the biggest faller on the FTSE 100.

 

Analysts at Liberum maintained their "hold" recommendation at £12.50 a
share, warning: "The uncertainty faced by EasyJet in the short term remains
substantial, with the outcome and implications of Brexit no clearer than two
years ago, cost pressure from sterling weakness and the risk that fuel
prices could reverse their recent declines and resume an upward path."

 

Bernstein analyst Daniel Roeska agreed that EasyJet's outlook for 2019
"continues to look challenging" due to fuel and other costs.

 

The full-year dividend will rise 43% to 58.6p a share.--BBC

 

 

 

Migrant workers send home £8bn to families

Migrant workers in the UK, many in low-paid jobs, are sending £8bn a year to
support families in their home countries, says a report from the United
Nations' education agency.

 

This is often used to help relations in poorer countries to stay in school.

 

But Unesco warns too much of this "hard-earned money" is being taken in
transfer charges by finance companies.

 

It says that people wiring money should only have to pay 3% in charges - but
the global average is 7%.

 

The Association of UK Payment Institutions says prices would be lower if
regulators allowed more companies to compete in this market.

 

The remittances sent home by migrants can be a lifeline for families in
poorer countries - sent back by people working in wealthier parts of the
world.

 

'Skimming off'

Such cash has become an informal and often unseen subsidy for educating
families in less affluent countries.

 

The UK is in the top 10 countries for overseas workers sending back money -
with billions of pounds sent to the three biggest recipients - Nigeria,
India and Pakistan.

 

Hundreds of millions are sent to Poland, China, Kenya, Philippines,
Bangladesh and Ghana each year.

 

>From the US, remittances have been particularly important to countries in
Central America and South America.

 

But Unesco, in its annual report on education, says too much is being taken
in fees by finance firms.

 

"Companies should not be allowed to continue skimming off so much of the
money that migrants are sending back home," says Manos Antoninis, director
of the Global Education Monitoring report.

 

"Such transaction costs are highest for the poorest migrants."

 

Family help that's bigger than aid budgets

Where remittances are a 'lifesaver'

Remittances 'propping up the economy'

Getting fees down to 3% across the world would save migrant families $25bn
(£20bn) per year - which the UN's education estimates would lead to an extra
$1bn being spent on education.

 

Boosting education spending

Although the average commission is 7% - the UN says many charges can be much
higher, with some costs for sending money to Africa rising about 20%.

 

Unesco's report shows the dependency on remittances and the positive impact
of the extra cash.

 

In 18 countries across Africa and Asia, remittances increased education
spending by 35% - and in Latin America by over 50%.

 

In India, rural families receiving remittances spent 17% more on education
than neighbours who did not have such cash being sent back by relations.

 

In the Philippines, this extra income from overseas was seen as a way of
reducing child labour, allowing children to remain in education.

 

Keeping children in school

In Ecuador, money from remittances has become important to keeping girls
enrolled in school.

 

There has been growing recognition of the scale of remittances in a
globalised economy.

 

As well as migrant workers in low-paid jobs, there are also well-qualified,
professional workers who go to wealthy countries and then send money home to
help with others in their family wanting to study.

 

The £8bn sent back from migrant workers in the UK compares with about £13bn,
which a House of Commons library report said was the UK government's total
overseas aid.

 

According to the Pew research group in the US, more than £500bn per year is
sent worldwide in remittances.

 

Such payments are a "vital resource in the countries where migrants have
come from," says Unesco's Mr Antoninis.

 

"These migrants have left everything, often following a dream. They then
send their hard-earned money back home to support those they left behind,
only to find they are charged extortionate fees for the service."

 

A spokesman for the Association of UK Payment Institutions says fees might
appear "unnecessarily high" - but it reflected the high levels of regulation
and restrictions in a market which mostly handled cash, rather than
electronic transfers.

 

He also said that even if some firms appeared to have low charges, there
could be other costs added through the exchange rate.

 

A spokeswoman for Western Union said they believed that about 30% of
transfers were intended for education.

 

She said that her firm's overall average fee for moving money was between 4%
and 6% - and that reflected the cost of a service that could immediately
transfer cash around the globe.--BBC

 

 

 

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


Finance minister Mthuli Ncube presents 2019 National Budget

Parliament

22/11/2018

 


Simbisa Brands

AGM

Standards Association of Zimbabwe, Northend Close, Borrowdale

23/11/2018 (8:15am)

 


Axia

AGM

Chapman Golf Club, Eastlea

27/11/2018 (8:15am )

 


Econet

AGM

Econet Park, Msasa

29/11/2018  (9am )

 


Econet

EGM

Econet Park, Msasa

29/11/2018  (10am )

 


GetBucks

AGM

Conference Room 1, Monomotapa Hotel

04/12/2018 (10am )

 


Innscor

AGM

Royal Harare Golf Club

05/12/2018 (8:15am)

 


Truworths

AGM

Boardroom, Prospect Park, 808 Seke Road

06/12/2018 (9am)

 


TSL

EGM

Head Office, 28 Simon Mazorodze Road, Southerton

07/11/2018 (10am )

 


Cassava shares list on the ZSE

 

11/12/2018

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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