Major International Business Headlines Brief::: 22 November 2018

Thu Nov 22 07:36:10 CAT 2018

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Major International Business Headlines Brief::: 22 November 2018

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*  Stanbic sees June 2019 close for $2.5 bln debt deal for Uganda's oil pipeline

*  South African rand edge higher in early trade

*  South Africa inflation meets forecasts as food prices fall

*  Zambia's copper output up 10.4 year/year in September

*  Kenyan shilling stable against the dollar, horticulture inflows help

*  Tanzanian exchange bureaus raided on suspicion of money laundering

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

*  Mr Price promotes corporate finance director to CFO

*  Is Carlos Ghosn's arrest a ‘hatchet job’?

*  Carlos Ghosn: Custody 'extended by 10 days'

*  Investment boss in tearful video apology over losses

*  Italy budget 'sleepwalking into instability' - Commission

*  Facebook appeals against Cambridge Analytica fine

*  Ikea eyes bigger city centre stores as shopping habits change

*  Bombardier to cut 490 more Northern Ireland jobs

*  Bet365: UK's best-paid boss sees pay rise to £265m

 <mailto:info at bulls.co.zw> 

Stanbic sees June 2019 close for $2.5 bln debt deal for Uganda's oil pipeline

KAMPALA (Reuters) - Stanbic Bank Uganda, lead arranger for the East African nation’s $2.5 billion debt for a crude oil pipeline, expects the deal to conclude in June next year, its chief executive said on Wednesday.

Uganda and Tanzania signed an agreement in May last year to jointly develop a pipeline that has been described as the longest electrically heated crude oil pipeline in the world.

Stanbic Uganda, a unit of South Africa’s Standard Bank Group, secured the role of joint arranger and adviser together with Japan’s Sumitomo Mitsui Banking Corp.

The pipeline will cost a total of $3.5 billion, with the balance coming from shareholders in equity.

Patrick Mweheire, Stanbic’s CEO, said it had engaged in talks with other lenders in Europe, Japan and China and that “they have all been extremely positive”.

“People like the project ... the economics of the pipeline make a lot of sense. I think we are looking at some time in June next year for financial close,” he said in an interview.

Covering a distance of 1,445 km, the 24-inch diameter pipeline will start near the oilfields in western Uganda and terminate at Tanzania’s Indian Ocean seaport of Tanga.

Landlocked Uganda discovered crude oil reserves estimated at 6.5 billion barrels more than a decade ago.

France’s Total, owns the fields alongside China’s CNOOC and Britain’s Tullow.

Uganda’s government hopes production will start in 2020 after repeated delays but Total and CNOOC, joint developers of the fields, have said output is likely to start a year later. Mweheire said Stanbic, which is Uganda’s largest lender, would create a unit to chase deals in financial technology, also known as fintech, to be unveiled in January. “The fintech (unit) ... will allow us to have relationships with other fintechs, potentially buy into some of those fintechs that bring some value propositions that we need,” he said.

Stanbic, he said, was already in talks to with Africa e-commerce firm Jumia for a potential partnership, he said without offering more details.

 <mailto:info at bulls.co.zw> 

South African rand edge higher in early trade

JOHANNESBURG (Reuters) - South Africa’s rand rose in early trade against a softer dollar on Wednesday, in line with a rise in local bonds and stocks as investor appetite for riskier assets was boosted.

At 0650 GMT, the rand traded 0.25 percent firmer at 14.0600 per dollar, after closing at 14.0950 in New York.

The currency is expected to trade in a range of 13.9500 to 14.2000 to the dollar on Wednesday, NKC African Economics said in a note.

Investors remain skittish on the rand as escalating worries about slowing global growth and the U.S.-Sino trade war tensions continue to be the focus.

South Africa-focused investors were awaiting the release of the country’s headline consumer inflation data for October, due at 0800 GMT, with the market expecting a 5.1 percent increase year on year from 4.9 percent in September.

Government bonds were firmer early on Wednesday, with the yield on the benchmark instrument due in 2026 down 2.5 basis points at 9.110 percent.

Stocks were set to open higher at 0700 GMT, with the JSE securities exchange’s Top-40 futures index up 0.72 percent.

South Africa inflation meets forecasts as food prices fall

JOHANNESBURG (Reuters) - South African inflation came bang in line with expectations in October with food prices edging lower while the impact of higher global oil prices was subdued, data showed on Wednesday.

South Africa’s headline consumer inflation rose to 5.1 percent year-on-year in October, data from Statistics South Africa showed on Wednesday. A Reuters poll had forecast price-growth at 5.1 percent.

Africa’s most industrialised economy is in a recession, upping pressure on the central bank to cut rates to support growth. The bank said at its last meeting in September it was more concerned about the deteriorating inflation outlook and that rates were already accommodative.

That has fed expectations of a rate increase at its policy meeting on Thursday, with 16 out of the 26 economists polled by Reuters last week predicting the Reserve Bank would keep its repo rate at 6.50 percent, while the rest forecast a 25 basis-point hike.

On Tuesday, forward rate markets were pricing in a near 50-50 chance of a 25 basis points rate increase, but on Wednesday that figure was down to a 30 percent probability.

Governor Lesetja Kganyago has said the bank wants inflation nearer 4.5 percent, the mid-point of its target range of 3 to 6 percent - leading to market expectations of a hike.

“Doves will think ‘Aha! So the SARB doesn’t have to hike after all’”, chief Africa economist at Standard Chartered Razia Khan said. “We however think the reasons for the tightening have more to do with the inflation outlook two years down the line, than the print for last month.”

Zambia's copper output up 10.4 year/year in September

LUSAKA (Reuters) - Zambia’s annual copper output rose 10.4 percent in September to 631,359 tonnes, the central bank in Africa’s second-biggest producer of the industrial metal said on Wednesday.

Some mining companies operating in Zambia include NFC Africa, majority owned by China Non-ferrous Metals Company Limited (CNMC), Canada’s First Quantum Minerals, Glencore, Barrick Gold and Vedanta Resources.

Kenyan shilling stable against the dollar, horticulture inflows help

NAIROBI (Reuters) - The Kenyan shilling was stable against the dollar on Wednesday due to inflows from remittances and earnings from horticulture exports meeting demand from general importers, traders said.

At 0700 GMT, commercial banks quoted the shilling at 102.70/90 per dollar, the same as Tuesday’s close.

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.

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.

Mr Price promotes corporate finance director to CFO

JOHANNESBURG (Reuters) - South African retailer Mr Price Group Ltd has appointed corporate finance director Mark Stirton as group chief financial officer effective Jan.1, it said on Wednesday.

Stirton’s appointment follows an announcement in October that current CFO Mark Blair will succeed Stuart Bird as chief executive.

Stirton, 39-year old, has been with the retailer since June 2014 and in his current position as group corporate finance director since April 2017.

Is Carlos Ghosn's arrest a ‘hatchet job’?

The arrest, detention and expected dismissal of Carlos Ghosn as chairman of Nissan has been described as a "clinically planned hatchet job".

That's according to sources close to the detained car industry executive.

Mr Ghosn was arrested on Monday night charged with under-reporting his income from Nissan and using company assets for his personal use.

The move has been seen by some as a bid to reset the balance of power in the Nissan/Renault/Mistubishi alliance.

Mr Ghosn, who is also chairman and chief executive of French car maker Renault, was the architect of this tie-up in which Renault was seen as the dominant partner due to its 43% shareholding in Nissan, despite selling fewer vehicles. Nissan's shareholding in Renault is only 15%.

While Nissan is expected to replace Mr Ghosn as chairman with chief executive Haroto Saikawa, Renault has held off sacking him from his Renault posts. It has instead handed his duties to chief operating officer Thierry Bollore on an interim basis.

While the governments of Japan and France insisted that the alliance of companies that manufactured 10 million cars last year should be preserved, it's widely thought that Nissan executives were uncomfortable at the power wielded over the company by Renault and concentrated in the hands of Mr Ghosn.

The Financial Times has reported that plans for a full merger of Renault and Nissan were advanced, but sources spoken to by the BBC insist that a full merger - to create a single company - "was never on the cards".

Despite Mr Ghosn being credited with rescuing Nissan from bankruptcy nearly 20 years ago, his hero status is said to irk some within Nissan, including Mr Saikawa. He refused to answer when questioned as whether Mr Ghosn had become a "dictator".

The charges against the Brazilian-born French citizen were levelled thanks to the help of internal staff at Nissan, who made use of a new Japanese law guaranteeing immunity against prosecution for whistleblowers.

Mr Ghosn's future at Nissan - or lack thereof - is expected to be announced after the Tokyo stock market closes at 0600 GMT on Thursday.

Clarity over his future at Renault and the fate of the alliance he almost single-handedly created may take considerably longer.--BBC

Carlos Ghosn: Custody 'extended by 10 days'

Japanese authorities have extended the detention of Nissan chairman Carlos Ghosn by 10 days, according to local media reports.

It follows his arrest on Monday after Nissan made allegations of financial misconduct.

Prosecutors had 48 hours after the arrest to press charges, release him or extend his custody.

Nissan accused Mr Ghosn of under-reporting his salary and using company assets for personal use.

In addition to his Nissan post, Mr Ghosn is also chairman and chief executive of Renault and chairman of Mitsubishi Motors.

The rise and fall of Carlos Ghosn

The driven 'cost killer'

The corporate scandals that rocked Japan

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

It appointed a temporary deputy chief executive to take over the running of the French car firm.

Nissan's board meets on Thursday and the carmaker, along with Mitsubishi, has said it is 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 made the allegation against the 64-year-old executive on Monday.

The carmaker said an internal investigation prompted by a whistleblower had revealed "significant acts of misconduct" including "personal use of company assets".

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

The announcement sent shockwaves through the automotive industry, where Mr Ghosn has been a huge figure.

The Brazilian-born businessman has been credited with turning around both Nissan and Renault before becoming the linchpin of the alliance the companies later formed.

Mr Ghosn is accused of filing annual securities reports containing fake statements, which carry a potential 10-year jail sentence.--bbc

Investment boss in tearful video apology over losses

The boss of a Florida-based financial firm has made a tearful video apology to clients after bad bets on oil and natural gas prices wiped out their investments.

James Cordier blamed a recent bout of market volatility for the losses, which are set to destroy his firm.

"I truly invested your funds like you were family," he said in the 10-minute video posted on YouTube.

"I'm sorry that this rogue wave capsized our boat."

Natural gas prices enjoyed their biggest one-day percentage gain in eight years on Wednesday last week, only to suffered their largest one-day loss in 15 years the very next day.

Meanwhile, oil prices have also fallen sharply.

Mr Cordier is president of OptionSellers.com, based in Tampa, and co-wrote a book called The Complete Guide to Option Selling.

The company managed money for wealthy investors and specialised in options, which give investors the right to buy or sell at a pre-determined price.

OptionSellers said the losses were its "clients' private business. We are in communication with them."

It was not clear how much money the firm managed or the size of the losses. Mr Cordier said in his video that he had 290 clients.

However, the losses could total more than $150m, according to Ohio lawyer Jason Albin, who has been in contact with about 80 clients.

Mr Albin said he thought the trades, which in some cases involved retirement accounts, should not have been permitted because of the risk involved.

He is looking at taking legal action against INTL FCStone, the brokerage that cleared the bets on behalf of Mr Cordier's company.

INTL FCStone declined to comment on the claims.

The firm said accounts managed by Optionsellers.com were liquidated after "unprecedented volatility" in the oil and gas markets last week.

"Although well collateralized, accounts managed by a commodities trading advisor, Optionsellers.com, had to be liquidated as a result of these moves," the company said.

"Liquidation of these accounts was in accordance with our customer agreements and our obligations under market regulation and standards."--bbc

Italy budget 'sleepwalking into instability' - Commission

The European Commission has taken the first step towards sanctioning Italy over its national budget in an ongoing row over the country's finances.

In October, the EU executive body rejected Italy's draft budget and told it to make changes - an unprecedented event in European politics.

Italy, however, said it would stick to its high-spending goals.

On Wednesday, the Commission said formal proceedings that could bring financial sanctions were "warranted".

Its report cited a "particularly serious non-compliance with the fiscal recommendation for 2019", and Commission Vice-President Valdis Dombrovskis said: "With what the Italian government has put on the table, we see a risk of the country sleepwalking into instability."

He said that the EU's disciplinary measure known as "excessive deficit procedure" (EDP) was now appropriate.

Italy's populist-led government had already been told by the Commission to revise its budget, because of the high level of national debt, which eurozone officials worry could cause instability for the entire bloc.

But the Rome government failed to make significant changes, putting the country on a collision course with Brussels.

Italy's populists agree new budget

Italy defies EU demand to cut budget

EU rejects debt-hit Italy's budget

Under the rules of the sanction procedure, potential consequences include a fine of 0.2% of GDP - which for Italy's economy would cost billions of euros - and a halt on the payment of any development funds.

However, the process could take a long time, and Mr Dombrovskis said he was still open to talks with Italy on how to address the disagreement.

Italy's deputy prime minister, Matteo Salvini, told reporters he remained convinced about his government's budget plans. Prime Minister Giuseppe Conte said he would meet Commission President Jean-Claude Juncker on Saturday to highlight the budget's "solidity and effectiveness".

How did we get here?

Italy's current government took office in June 2018 and is a coalition of the anti-establishment Five Star Movement and right-wing League.

Widely seen as a populist coalition, the first national budget of new government was hammered out in September,

The problem for EU officials was its high cost for a country facing massive debts. The government planned to rack up a budget deficit of 2.4% of GDP to finance its plans.

The Commission had hoped for a lower budget cost as the previous government's plans were for a 0.8% deficit.

Italy is the third-largest economy in the eurozone, but has more than two trillion euros in debt - which is 131% of the country's entire economic output.

To put that in context, it is second only to Greece (178%), and far higher than the UK (88%) or Germany (64.1%). The debt is equivalent to about €37,000 for every person in Italy.

The government argues that additional investment is needed to kick-start the sluggish Italian economy, which has still not recovered from the financial crisis of a decade ago.

Italy's statistics agency Istat forecast on Wednesday that the economy would grow by 1.3% in 2019, and 1.1% in 2018.

While it said the budget would help boost demand in the Italian economy, its 2019 estimate is below the government's figure of 1.5%.

Shortly before the League-Five Star government came to power, Istat forecast a growth figure of 1.4% for 2018, and it said on Wednesday that growth was slowing in comparison with 2017.

Why is Italy's budget so expensive?

Italy's government hailed the budget as one that would "end poverty".

The draft budget included the fulfilment of election promises, such as reversing plans to raise the retirement age and a guaranteed basic income of €780 (£700; $890) for poor families. Those two plans alone were expected to total about 0.7% of Italy's GDP.

It also included tax cuts and reforms.

Recent bad weather in Italy has also added major infrastructure projects to the government's priorities - including the aftermath of the Genoa bridge collapse in August, which raised concerns over the country's ageing public works.--BBC

Facebook appeals against Cambridge Analytica fine

Facebook has appealed against a fine imposed on it by the UK's data watchdog after the Cambridge Analytica scandal.

The social network says that because the regulator found no evidence that UK users' personal data had been shared inappropriately, the £500,000 penalty was unjustified.

Last month, the watchdog said Facebook's failure to make suitable checks on apps and developers amounted to a "serious breach of the law".

It has acknowledged the appeal.

This was the last day on which the US firm could challenge the Information Commissioner's ruling.

The affair stems from the discovery that an academic at the University of Cambridge - Dr Aleksandr Kogan - used a personality quiz to harvest up to 87 million Facebook users' details.

Some of this was subsequently shared with the political consultancy Cambridge Analytica, which used it to target political advertising in the US.

It was initially reported that about 1.1 million UK-based users had had their details exposed.

But Cambridge Analytica said it had only ever licensed data belonging to about 30 million people, and a probe by the Information Commissioner's Office found no evidence that UK citizens were among them.

Even so, the ICO imposed the maximum penalty possible on Facebook on the basis that UK members had been put at risk and the tech firm had not done enough to address this after learning of the problem.

"The ICO's investigation stemmed from concerns that UK citizens' data may have been impacted by Cambridge Analytica, yet they now have confirmed that they have found no evidence to suggest that information of Facebook users in the UK was ever shared by Dr Kogan with Cambridge Analytica, or used by its affiliates in the Brexit referendum," said a statement from Facebook's lawyer Anna Benckert.

"Therefore, the core of the ICO's argument no longer relates to the events involving Cambridge Analytica. Instead, their reasoning challenges some of the basic principles of how people should be allowed to share information online, with implications which go far beyond just Facebook, which is why we have chosen to appeal.

"For example, under the ICO's theory people should not be allowed to forward an email or message without having agreement from each person on the original thread.

"These are things done by millions of people every day on services across the internet, which is why we believe the ICO's decision raises important questions of principle for everyone online which should be considered by an impartial court based on all the relevant evidence."

An independent body, known as a General Regulatory Chamber tribunal, will consider the challenge.

If it is unhappy with the decision, Facebook can subsequently take the case to the Court of Appeal.

"Any organisation issued with a monetary penalty notice by the Information Commissioner has the right to appeal the decision to the First-tier Tribunal," said a spokesman for the ICO.

"The progression of any appeal is a matter for the tribunal. We have not yet been notified by the tribunal that an appeal has been received."

The appeal risks dragging out an affair that has undermined the public and politicians' trust in Facebook.

However, the BBC understands that the US firm was concerned that the ICO's ruling would form the basis for decisions taken by other regulators, which could prove more damaging still.

The ICO has itself noted that the £500,000 fine would be "significantly higher" had the EU's General Data Protection Regulation been in force earlier.

The move has not, however, changed chief executive Mark Zuckerberg's mind about rejecting an invitation to be cross-examined by MPs.

Facebook's decision to appeal against this fine is a move that Sir Humphrey, the civil servant in Yes Minister, would describe as "brave".

At a time when the social media firm is under fire and accused of using dodgy tactics to combat its critics, picking a fight with the UK regulator over an issue which was beginning to fade into the background seems reckless.

After all, the social media giant admits that it got a whole lot of things wrong in the Cambridge Analytica affair, in particular allowing the data of friends of people who took part in a personality quiz to be scraped.

But Facebook feels that the Information Commissioner's Office moved the goalposts halfway through its investigation, deciding that one million UK users had suffered harm and then finding that the researcher Dr Aleksandr Kogan did not pass their data on to Cambridge Analytica.

Some data protection experts think the company has a point.

Mark Zuckerberg and his company appear determined to fight back against what they see as a flawed process but the appeal is a gamble.

The stakes are also high for the Information Commissioner Elizabeth Denham. She made the unusual decision to go public with her intention to impose a fine before receiving representations from the company.

If Facebook's appeal succeeds, her authority as a regulator will be seriously undermined.--BBC

Ikea eyes bigger city centre stores as shopping habits change

Ikea may open large stores in city centres as it seeks to adapt to changing shopping habits.

Javier Quinones, UK boss of the Swedish furniture giant, said the stores would be "in between" the size of its new smaller city centre format and its big out-of-town stores.

"There are many formats we can try and will try," he said.

The retailer plans to add 4,000 staff to its global workforce over the next two years as part of a business revamp.

In total the company is creating 11,500 new posts, but eliminating 7,500 other jobs.

As many as 350 jobs are likely to go in the UK, mainly in head-office functions.

Ikea to open small stores in UK

Our love-hate relationship with Ikea

The new jobs will be created at smaller stores, called Touchpoints. About 30 are planned.

The first, described by Ikea as a planning studio, is already trading on Tottenham Court Road in central London.

Customers can visit these shops for more complicated purchases, such as kitchens and bedrooms, and then order them online.

But Mr Quinones said not all city centre stores would be as small as the Tottenham Court Road outlet.

The firm has been relatively slow to move to online shopping, but he said it had to respond to a fall in car ownership and consumers' desire for shopping to be convenient.

Ingka Holding, Ikea's parent group, attributed a 2% rise in sales to €34.8bn (£31bn) for 2017-2018 to stronger online sales and store openings.

The number of visitors to Ikea's website rose 10% to 2.4 billion, higher than the 3% rise in store customers to 838 million.

Jesper Brodin, Ikea chief executive, said: "The retail landscape is transforming at a scale and pace we've never seen before. As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and new ways."

'Full Ikea experience'

Ikea's city centre expansion is likely to be welcomed by struggling High Streets amid a tough trading climate.

About 14 shops closed every day in the first six months of the year, according to the most recent figures available from accountancy firm PwC.

Ikea also plans to open a new big store in Greenwich in southeast London next year, creating 500 new jobs, but has scrapped plans for another outlet, at Cuerden, Lancashire because the site was "no longer viable".

Mr Quinones insisted that the firm had not given up on its large store model, saying people still wanted the "full Ikea experience".--BBC

Bombardier to cut 490 more Northern Ireland jobs

Bombardier is to cut a further 490 jobs from its Northern Ireland operations, the aerospace firm has announced.

The Canadian aircraft manufacturer employs about 4,000 people across several locations in Northern Ireland.

The region's biggest high-tech manufacturer said it had to reduce its workforce after reviewing its "manpower requirements" in Belfast.

The Unite trade union said the job losses were a "bombshell, unjustified in the face of rising profits".

The company employs 69,500 worldwide, and most of its NI-based workforce are based at a wing-making plant in Belfast.

In February, Bombardier, which also manufactures trains, reported a 57% rise in profits.

'Impact on families'

The firm announced this month that it was cutting 5,000 jobs across its global operations.

At the time, it said 3,000 posts would be lost at its Canadian locations.

The company acknowledged that cutting the jobs in Belfast would have an "impact... on our workforce and their families".

"We continue to explore opportunities to help mitigate the number of compulsory redundancies," it added.

"However, we need to continue to cut costs and improve the efficiency of our operations to help ensure our long-term competitiveness."

Timeline: Bombardier job losses

May 2015: Firm announced a cut of at least 220 jobs due to a fall in demand for business jets.

February 2016: It said it would lose about 20% of its NI workforce, with 580 jobs to go in 2016 and 500 in 2017.

April 2016: Job cuts revised - from 580 to 630.

September 2017: Another 95 redundancies announced.

October 2017: Plan to cut another 280 jobs revealed.

The scale of the job losses exceeded the "worst fears" of Unite members, said Jackie Pollock, the union's Ireland secretary.

"Although these jobs will not go until February or March, this announcement is a cruel blow for the Bombardier workforce in the mouth of Christmas."

'High-quality jobs'

Wings for the A220 plane - formerly known as the CSeries - are made at a factory in Belfast, supporting about 1,000 jobs.

In July, Bombardier said it had to make more efficiency savings in Northern Ireland in an attempt to increase sales of the plane by making it cheaper.

The Belfast plant is based in the East Belfast constituency of Ulster Unionist MLA Andy Allen, who said the job losses were a "devastating blow" to workers.

"It is difficult to overestimate the importance of Bombardier to not just east Belfast but the economic wellbeing of Northern Ireland," he added.

"These are high-quality jobs that we simply cannot afford to lose."

The DUP's East Belfast MP Gavin Robinson said he hoped the company would do "everything possible to minimise the number of compulsory redundancies".

There have been several redundancy programmes at Bombardier in Northern Ireland in recent years.—BBC

Bet365: UK's best-paid boss sees pay rise to £265m

The UK's best-paid boss, co-founder of online gambling firm Bet365 Denise Coates, has received another bumper pay rise.

The firm's accounts show compensation, for the firm's "highest paid director" rising to £265m including dividends.

That was £48m higher than the total she received last year as the popularity of online gambling continues to grow.

However the industry is facing mounting criticism for not doing enough to deal with problem gambling and addiction.

The privately held company is owned jointly by Ms Coates and members of her direct family, including her brother John who is joint chief executive and her father Peter, the firm's chairman. Last year Ms Coates' pay and dividends were reported to total £217m.

In the year to the end of March her basic pay rose from £199m to £220m. The firm paid out £90m in dividends in the same year, half of which are thought to have gone to Ms Coates, as the owner of half of Bet365's shares.

Ms Coates earned a first class degree in econometrics - the application of statistical methods to economic data - from Sheffield University before joining the High Street betting firm, run by her father. 

She identified the potential of online gambling in 2000 and invested in the domain name Bet365.com so that she could drive the family business in that direction.

Bet365, now the largest private sector employer in Stoke, has millions of customers worldwide. It offers sports betting, poker, casino, games, and bingo. The accounts showed that the firm's revenues grew by 25% in the year to the end of March and operating profit was up by 31%.

Increasing criticism

While the online gambling sector has ballooned in recent years, it has also come in for increasing criticism over its impact on some customers who have become addicted or accrued large debts.

Labour's deputy leader Tom Watson recently described gambling as a "public health emergency".

Bet365 said it was continuing to develop strategies to identify gamblers at risk and to "help customers bet responsibly".

However, Luke Hildyard, spokesman for the High Pay Centre, which campaigns against excessive executive remuneration, said "betting companies are not exactly a force for good in the world".

"There is an increasing perception that big business only serves the interests of an elite few - a billionaire taking hundreds of millions more from a company that profits, in part, from other people's addictions does nothing to dispel that perception," he said.

Ms Coates, 51, lives in Cheshire with her husband, Richard Smith, who also serves as the firm's property director, and their children.

The group owns Stoke City Football Club, which made a loss of £21m and in 2017 the group paid £75m into its charitable fund, set up in Ms Coates' name.--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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