Major International Business Headlines Brief::: 27 November 2018

Tue Nov 27 08:38:33 CAT 2018

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Major International Business Headlines Brief::: 27 November 2018

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

*  South African bourse fines Pepkor for breaching listing requirements

*  New Barrick CEO eyes miners' alliance to fix Tanzania tax row

*  Airtel Africa appoints global banks for IPO

*  Ghana central bank keeps policy rate at 17 percent

*  South Africa's rand firms in early trade

*  S&P keeps South Africa credit ratings below investment grade

*  South Africa to invest $1 bln in South Sudan's oil sector

*  Energy revenues cut Algeria trade deficit in Jan-Oct - customs

*  Egypt on track to achieve its financial targets - finance minister

*  Mobile faster than wi-fi in many countries

*  Trump likely to go ahead with China tariff hike

*  GM to slash jobs and close eight plants

*  Trump populism a 'shout of pain', says Greenspan

*  Italy budget: Rome vows to stick to plans, despite EU concerns

*  Can the 'broken' fashion industry become more sustainable?

 <mailto:info at bulls.co.zw> 

South African bourse fines Pepkor for breaching listing requirements

JOHANNESBURG (Reuters) - South Africa’s Johannesburg Stock Exchange (JSE) has fined retailer Pepkor Holdings Ltd for breaching its listing requirements, it said on Monday.

Pepkor failed to disclose the Domestic Medium Term Note (DMTN) Programme guarantee for Steinhoff Services Limited, Business Ventures Investments (BVI) and loans to directors or key management personnel in its pre-listing statement and 2017 financial results, the JSE said in a statement.

Pepkor, previously known as Steinhoff Africa Retail, said in a statement it “acknowledged that inadequate disclosures were made during the process of its listing and the publication of its annual financial statements in 2017.”

The JSE said Pepkor had cooperated with the bourse during its investigation and promised to address the breaches.

“Notwithstanding this fact, the JSE has decided to impose this public censure against the company with a fine in the amount of five million rand ($364,000) of which one million rand is suspended for a period of two years.”

The JSE said that at the time of the listing, Pepkor’s wholly-owned subsidiary formed part of a group of companies which unconditionally and irrevocably guaranteed the Steinhoff Services Limited 15 billion rand DMTN programme.

It also, through its subsidiaries, provided loans to directors or key management personnel in terms its management investment scheme through an entity called Business Ventures Investments, which amounted to 9 million rand as of Sept. 30 2017 and 18 million rand as of Sept. 30 2016.

Through its subsidiaries, it was also party to a guarantee of third party debt related to BVI and its exposure there equated to 440 million rand as of March 31 2018.

($1 = 13.7848 rand)

 <mailto:info at bulls.co.zw> 

New Barrick CEO eyes miners' alliance to fix Tanzania tax row

LONDON/TORONTO (Reuters) - Barrick Gold’s incoming chief executive said he wants to pull together Tanzania’s mining industry to tackle a “desperate” tax dispute that has snared several companies, including the firm’s Acacia Mining unit.

    In an increasingly acrimonious conflict that has lasted almost two years, the government has torn up mining contracts, hiked taxes and royalties, and banned raw minerals exports.

President John Magufuli, nicknamed “The Bulldozer”, swept to power in 2015 pledging to secure a bigger share of resource wealth and cut corruption. Acacia was later handed a $190 billion tax bill - about four times the country’s gross domestic product - for underreporting output.

The miner, 63.9 percent owned by Barrick, now faces dozens of criminal charges, from tax evasion to money laundering, with three employees arrested on related accusations

Randgold founder Mark Bristow, Barrick’s new CEO after its $6.1 billion acquisition of Randgold closes on Jan. 1, says fixing Barrick’s mounting problem in Tanzania could require a collective strategy that has not been used there before.

“Tanzania has got a broader (mining) industry and the importance of the industry itself getting together with government is not a bad idea,” Bristow told Reuters in an interview earlier this month.

While there is as yet no agreement to coordinate, “I don’t think it’s a bad place to start”, he said.

Mining accounted for 4.8 percent of Tanzania’s GDP in 2016, the last year for which figures are available. Acacia dominates the industry, followed by AngloGold Ashanti, Petra Diamonds and Shanta Gold.

AngloGold said it would consider allying with Acacia on the issue. A source at another mining company, who did not want to speak publicly, said it may be challenging to unite Tanzania’s mining industry, which may “not want to inherit” Acacia’s issues.

The collective approach is not assured to succeed.

A new code in the Democratic Republic of Congo, which scrapped a stability agreement while hiking royalties and taxes, was enacted despite vigorous opposition from miners led by Randgold and Glencore.

    But Bristow, who says he plans to intervene in Tanzania before the takeover closes, is confident he can break the impasse.

    “Barrick is concerned about the situation in country at the moment. It’s desperate,” he said.

Executive Chairman John Thornton, who last October struck a framework deal with the government that is still not enacted, said Bristow has “great standing” in Tanzania.

    Under the October deal, Acacia was to pay the government $300 million, give it 16 percent ownership and split the economic benefits of its mines.

    Acacia, which has lost more than two-thirds of its value since early 2017, was blindsided by the deal, a source said. The biggest hurdle to its enactment is disagreement over the $300 million pay-out schedule and whether it settles the long-standing tax dispute, the source said.

One of Barrick’s two lead negotiators, special envoy to Tanzania and former chief operating officer Richard Williams, recently left the company.

    Barrick’s head of strategy Kevin Thomson will now work on the matter with Barrick’s new Africa and Middle East COO Willem Jacobs, who will take up Williams’ responsibilities.

    Jacobs, formerly Randgold’s head of Central and East African operations, ran talks for the miner in Congo.

Airtel Africa appoints global banks for IPO

(Reuters) - Airtel Africa, a unit of Indian telecom operator Bharti Airtel Ltd, said on Monday it had appointed eight banks for an intended initial public offering (IPO) on an international stock exchange.

The company has appointed JP Morgan, Citigroup Inc, BofA Merrill Lynch, Absa Group Limited, Barclays Bank PLC, BNP Paribas, Goldman Sachs International and Standard Bank Group Ltd.

Ghana central bank keeps policy rate at 17 percent

ACCRA (Reuters) - Ghana’s central bank kept its benchmark interest rate unchanged at 17 percent on Monday to cushion the West African economy against possible global pressures on emerging economies, governor Ernest Addison said.

The decision, the third hold this year, also helps to stabilise the local currency which has come under marginal pressure in recent weeks, Addison told reporters in Accra.

“The latest assessment shows that there are underlying pressures including risks in the continuing escalation of global trade pressures, steady rise in global inflation, further hike in U.S interest rates and a strong U.S dollar,” Addison said.

Ghana, which exports cocoa, gold and oil, is in its final year of a $918 million aid programme with the International Monetary Fund to narrow fiscal deficit, reduce debt and cut inflation to 8 percent, plus or minus 2 percentage points by the end of year.

The local currency depreciated 7.8 percent since January, above the bank’s end-year projection of less than 5 percent while public debt rose to $35.8 billion or 57.2 percent of gross domestic product at the end of September from $31.6 billion or 54.3 percent.

Addison said majority of commercial banks operating in the country were close to meeting the central bank’s new minimum capital requirement of 400 million cedis before the start of 2019.

South Africa's rand firms in early trade

JOHANNESBURG (Reuters) - South Africa’s rand firmed against the dollar in early trade on Monday, even though risk sentiment remained fragile as investors looked to the G20 meeting this week for signs of a thaw in the Sino-U.S. trade spat.

At 0621 GMT, the rand traded at 13.8150 per dollar, 0.31 percent firmer than its close on Friday.

Currency traders are looking to the upcoming G20 meeting in Buenos Aires on Nov. 30, where U.S. President Donald Trump and Chinese President Xi Jinping are expected to discuss contentious trade matters.

On the local front, the focus was on business and consumer confidence reports and October trade data due this week.

“While the rand is expected to remain under the 14.00 level, we can expect some pressure to the downside as sentiment swings in favour of the dollar and sterling,” said Bianca Botes, treasury manager at Peregrine Treasury Solutions.

In fixed income, yield on the benchmark government bond due in 2026 was down 4.5 basis points at 8.89 percent.

S&P keeps South Africa credit ratings below investment grade

JOHANNESBURG (Reuters) - S&P Global Ratings kept South Africa’s foreign-currency and local-currency credit ratings at below investment grade on Friday.

“Anaemic economic growth in 2018 and sizable contingent liabilities continue to weigh on South Africa’s fiscal prospects and debt burden,” S&P said, adding that it had a “stable” outlook on the ratings.

The long-term foreign-currency rating stayed at ‘BB’, while the local-currency rating stayed at ‘BB+’.

S&P and Fitch rate South Africa in “junk” status, driving its cost of borrowing higher.

South Africa to invest $1 bln in South Sudan's oil sector

JUBA (Reuters) - South Africa will invest $1 billion in South Sudan’s oil sector, including in the construction of a refinery, the South African minister for energy and his South Sudanese counterpart for petroleum said on Friday.

South Sudan’s oil industry is dominated by Asian firms including China National Petroleum Corporation (CNPC), Malaysia’s Petronas and India’s Oil and Natural Gas Corporation (ONGC Videsh).

The two ministers signed a memorandum of understanding which will also involve South Africa taking part in the exploration of several oil blocks, the ministers said.

“When this refinery is complete, it will have the capacity of producing 60,000 barrels of oil per day,” said Jeff Radebe, South Africa’s minister of energy.

Ezekiel Lol Gatkuoth, petroleum minister for South Sudan, said the deal also offers avenues for cooperation in the construction of a pipeline to serve fields located in the south of the country.

South Sudan exports its crude through another pipeline that goes to a port in neighbouring Sudan to the north.

“It is instrumental to have a new a pipeline,” Gatkuoth said.

Energy revenues cut Algeria trade deficit in Jan-Oct - customs

ALGIERS (Reuters) - Algeria’s energy earnings rose 18.21 percent in the first 10 months of this year from the same period in 2017, pushing down the trade deficit by 58.65 percent, official figures showed on Sunday.

Oil and gas exports, which accounted for 93.17 percent of total sales abroad, reached $31.795 billion, up from $26.896 billion in January-October last year, according to customs data.

The overall value of exports reached $34.126 billion, against $28.424 billion in the first 10 months of 2017, while imports fell 0.35 percent to $38.240 billion.

The North African country has imposed import restrictions in an attempt to cut spending after a fall in energy revenues since 2014.

Egypt on track to achieve its financial targets - finance minister

CAIRO (Reuters) - Egypt’s state revenues grew by 35.5 percent in the first quarter of this fiscal year, putting the government on track to achieve its targeted primary budget surplus of 2 percent, the finance minister said on Friday.

Government investment rose 85 percent while tax collection increased by 39.8 percent, Finance Minister Mohamed Maait said in a statement.

“These positive results for the first quarter of the current fiscal year affirm Egypt’s ability to achieve its financial targets for the budget for the current fiscal year,” the minister said.

Egypt’s fiscal year runs from July to June.

Primary budget figures do not factor in interest payments on government debt.

Maait attributed the positive results to Egypt’s economic reforms programme, part of an IMF loan deal signed in 2016.

Under the IMF deal Egypt devalued its currency and has been gradually cutting fuel subsidies, putting the finances of tens of millions of Egyptians under strain.

Egypt is pushing ahead with the economic reforms which it sees as essential in attracting foreign investment.

The budget deficit in the first quarter of the current fiscal year was down slightly to 1.9 percent from 2 percent last year, the minister previously said.

Egypt’s economy was hit hard in the turbulent years that followed a 2011 popular uprising which toppled autocrat Hosni Mubarak. The political unrest scared away many tourists and foreign investors, but recently the economy has showed signs of recovery.

Mobile faster than wi-fi in many countries

Download speeds across mobile networks are now faster than wi-fi in many countries, research suggests.

Speed tests in 80 countries revealed wi-fi was left lagging in 33 nations, according to wireless coverage mapping company OpenSignal.

Mobile data should also get a further speed boost when 5G networks arrived, it said.

Wi-fi remained the fastest way to go online in most countries surveyed, including the UK and Ireland.

But OpenSignal noted that because anyone could set up a wi-fi network in a location already used by others, performance could suddenly lag due to "congestion" of the airwaves involved.

By contrast, mobile networks have to license the spectrum they use, so in theory, the company said, they should deliver a more consistent experience.

"The perception that mobile networks are inferior to wi-fi has persisted, wrongly," wrote analyst Ian Fogg in the report.

Australians enjoy the greatest advantage over wi-fi, with mobile download speeds being on average 13Mbps faster. Other nations in a similar position included Qatar, France, Mexico, Turkey and South Africa.

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When can I buy a 5G phone and how much will it be?

Places where wi-fi was on average more than twice the speed of mobile data included Hong Kong, the US, Thailand, Israel and Russia.

In the UK, wi-fi was about 60% faster than mobile because, said the report, its mature fixed network helped data get to hotspots and on to users quickly.

The differences in network speeds were more pronounced when only the latest 4G networks were taken into account.

Countdown to 5G

In 63% of the 50 nations where 4G was available, mobile networks were quicker, said Mr Fogg.

And the gap would only widen once fifth-generation (5G) networks were turned on, because most improvements to wi-fi speeds were set to come from work to upgrade fixed broadband networks, which would take much longer to accomplish.

However, another data speed-measuring company cautioned that it could take a while for the benefits to be shared by all.

"The infrastructure deployed for 5G will likely not extend into remote areas," Kevin Hasley, head of product at RootMetrics, told the BBC.

"Wi-fi will remain an important tool for the provision of fast internet connections for a segment of the populous."

Even so, OpenSignal said phone-makers needed to "ensure they do not accidentally push consumers' smartphones on to a wi-fi network with a worse experience than the mobile network".

Technology news site The Register said Huawei now made phones that performed tests to find the fastest network.

The report also noted efforts by Samsung to make phones that joined to both wi-fi and mobile networks to send data and boost browsing speeds.--bbc

Trump likely to go ahead with China tariff hike

US President Donald Trump says he is likely to go ahead with a hike on tariffs currently imposed on Chinese goods.

The comments to the Wall Street Journal come as he is expected to meet China's Xi Jinping on the sidelines of this week's G20 summit.

The tariffs would be raised from 10% to 25% on $200bn (£156bn) worth of goods.

Mr Trump also said he would hit the rest of China's imports to the US with tariffs if talks did not go well.

The US president said it was "highly unlikely" that he would agree to Beijing's request to hold off on the planned tariff rise, the newspaper said.

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US-China trade war in 300 words

If negotiations were unsuccessful, Mr Trump said he would act on a previous threat to target additional Chinese goods with tariffs.

"If we don't make a deal, then I'm going to put the $267 billion additional on," Mr Trump was also quoted as saying. That additional amount would be targeted with a tariff of 10% or 25%, he told the Wall Street Journal.

He said Apple iPhones and laptop computers imported from China could also be subject to tariffs.

'Classic Trumpism'

In a war, always keep your opponent guessing. That's the first rule of negotiation. And the more publicly you can declare your position, the better.

That's exactly how you should read President Trump's comments to the Wall Street Journal about going ahead with fresh China tariffs if Beijing doesn't play ball.

This is classic Trumpism. Show strength so you can scare your opponent into doing what you want. But the Chinese aren't like anyone the president has dealt with before.

Mr Trump's upcoming meeting with President Xi at the G20 was meant to help dissipate tensions between the two sides. But with these comments, President Trump has left very little room for China to walk away from the table with a deal and save face: something Beijing will need to do to satisfy its domestic audience.

So it's highly unlikely we will get a successful deal between the two at the G20 - and that means the rest of us will be the poorer for it.

'Deeply disappointing'

Mr Trump launched a trade war with China this year, which has seen the US hit about half of all Chinese imports into the US with tariffs.

China has retaliated but has less room to manoeuvre as the US buys much more from China than it exports there.

Analysts say failure by the US and China to find common ground at the G20 could lead to a deterioration in the trade war, which is already hurting industries, and poses risks to the global economy.

"It is deeply disappointing the president wants to undermine his opportunity to create meaningful progress before the discussions even begin," said Jose Castaneda, spokesperson for the US-based Information Technology Industry Council.

The US president has signalled he wants to continue with this "short-sighted" trade war despite "the pain" Americans have felt as a result of tariffs, Mr Castaneda said.

"Imposing a new round of tariffs would cause a shock that will reverberate across America and the globe," he said.--bbc

GM to slash jobs and close eight plants

General Motors (GM) plans to halt production at five factories in North America and cut more than 14,000 jobs.

The US carmaker has also announced it will close three plants outside North America by the end of 2019.

The moves follow rising costs and slower car sales and come as the firm focuses on its line-up of trucks, electric and self-driving vehicles.

But the restructuring drew swift criticism from politicians, including President Donald Trump.

"I am not happy about it," he said of the plans, which undercut his claims that his policies are spurring a revival in the US auto industry.

"They better put something else in."

The production cuts come as buyers in North America have turned away from smaller cars to bigger vehicles such as SUVs and trucks, which now make up nearly 70% of total US car purchases.

Ms Barra said GM wants to invest in electric and autonomous vehicles, which are expected to drive future industry growth.

She is also responding to rising costs - including from new tariffs on materials such as steel - while preparing the firm for the next downturn, after US car sales peaked in 2016.

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The company said the plan would help it save about $6bn (£4.7bn) by the end of 2020.

"The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future," said GM chair and chief executive Mary Barra.

"We recognise the need to stay in front of changing market conditions and customer preferences to position our company for long-term success."

What are the details?

GM said it is cutting production of the Buick LaCross, Chevrolet Impala and Cruze, as well as the Cadillac CT6 and XTS - all sedans - as well as the Chevrolet Volt and older versions of the Silverado and Sierra.

The closures in North America include an assembly plant in Oshawa, Canada; facilities in Detroit and Warren in Michigan; a plant in Warren, Ohio and a site near Baltimore in Maryland.

It is also closing a factory in South Korea, as announced in February, as well as two other international facilities that were not specified.

GM said it expects the cuts in North America to affect more than 6,100 shift workers at the five plants, as well as more than 8,000 salaried employees.

Globally, the firm, which employed about 180,000 salaried and shift staff at the end of last year, is aiming to reduce the number of salaried employees by 15%, including 25% fewer executives.

The firm had signalled some of its plans previously, offering voluntary buyouts to up to 18,000 workers in October.

GM boss Marry Barra said the firm was embarking on the cuts to "keep ahead of changing market conditions".

Some of those changing conditions have little to do with the White House.

But others do.

Take the tariffs on steel - a key component in the production of cars. They have pushed up GM's costs by an estimated $1bn.

Then there are shifting trade agreements and the president's proposal to raise tariffs on imported cars.

New tax cuts passed last year were designed to encourage companies like GM to invest at home, but today's announcement signals the lower tax rates are not enough to offset rising expenses.

So while investors may cheer today's moves as a boost to GM's bottom line, they're a blow to President Trump and his many boasts about bringing car industry jobs back.

What is the response?

Shares in the company jumped almost 5% after the announcement, but the firm faced attacks outside of Wall Street.

Canadian Prime Minister Justin Trudeau said he called Ms Barra to express his "deep disappointment" in the closure of the Canadian GM plant, which has been in the province of Ontario for a century.

US Senator Sherrod Brown, a Democrat who represents Ohio, called the decision "corporate greed at its worst", while Republican Senator Rob Portman, also of Ohio, said he was "deeply frustrated".

Mr Trump, whose threats have frequently singled out the car industry, said he thought the pressure on GM would lead it to direct new work to the plants, at least in Ohio.

"I was very tough when I spoke to [Ms Barra]," he said. "They say the Chevy Cruise is not selling well. I said well get a car that is selling well and put it back in."

Labour unions in the US and Canada also said they would press the company to allocate more work to the factories, instead of closing them.

"To be clear, [we do] not accept the closure of the plant as a foregone conclusion," labour leaders at the Oshawa factory in Canada wrote to their members.

"Remember, our plant has been in this situation before with no product on the horizon and we were able to successfully campaign for continued operations."--bbc

Trump populism a 'shout of pain', says Greenspan

The populism of Donald Trump is a "shout of pain" but it won't improve the living standards of ordinary Americans, former head of the Federal Reserve Alan Greenspan has said.

The economist, who led the bank from 1987 to 2006, said Mr Trump's trade war with China would hurt US workers.

In a BBC interview, he also called Brexit the "worst outcome".

However, he rejected claims that his free market policies at the Fed were a cause of the 2008 financial crisis.

"I did not forecast the 2008 crisis but then again nobody did," he told BBC Radio 4's Today programme.

The perils of a political Federal Reserve

Trump sharpens attack on Federal Reserve

Since 2017, Mr Trump has left or sought to renegotiate international trade deals and imposed steep import tariffs on goods like steel.

He says he wants to stop US jobs being lost to countries with lower labour costs, like Mexico or China, while addressing decades-old trade imbalances.

But Mr Greenspan compared the president's approach to that of populist leaders in Latin America in the late 19th and early 20th centuries.

"We have one major so-called leader saying 'I feel your pain and I am here to help you'," he told Today.

"People like the sound of it but the facts are he is lowering the standard of living of the average American."

'Chagrined by Brexit'

Mr Greenspan said that during a trade war, tariffs acted like a tax on both sides, meaning that no one emerged better off.

"You add excise tax and suffer accordingly - but if your suffering is less than your opponent's then you have won the war," he said.

He said Britain's decision to leave the EU had "chagrined" him and would also leave UK citizens worse off.

"Let's remember the purpose of the EU is to get the division of labour so structured that you maximise the value-added of the production of the society.

"And to the extent that you impair that, which is what a tariff does, you lower the standard of living in England."

During his tenure at the Fed Mr Greenspan oversaw the world's longest post-war boom, encouraging growth through low interest rates and deregulation.

But some say he failed to stop the excesses that led to the subprime mortgage crisis of 2007 - the precursor to the global financial crisis.

Mr Greenspan has in the past admitted he was "partially wrong" in his hands-off approach, but he told the BBC that populists like Mr Trump did not have the answer.

"They can promise to protect people from the market but we should remember the rate of increase in productivity in both the UK and the US is going down."--bbc

Italy budget: Rome vows to stick to plans, despite EU concerns

Italy's government says it will stick to its high-spending budget plans, setting up a potential stand-off with the European Union over its deficit.

PM Giuseppe Conte, who held talks with deputies Matteo Salvini and Luigi Di Maio on Monday, said the objectives for 2019 had already been fixed.

However, Mr Di Maio hinted earlier that the government might be willing to cut the deficit target a little.

The European Commission has threatened fines unless Italy revises its plans.

The Italian government has vowed to "end poverty", trebling the previous government's planned budget deficit.

Italian media were on Monday morning reporting that the deficit could be slashed from a planned 2.4% to 2.2% of GDP - but government sources quoted by Reuters suggested the deficit could be reduced to as low as 2%.

Deputy Prime Minister Luigi Di Maio suggested the government might be willing to reduce the deficit target to end the stand-off with the EU saying: "If, during the negotiating process, the deficit has to be reduced a bit, that's not a big deal."

But in a joint statement later on Monday, the three men appeared to take a tougher line, saying: "The objectives that have already been fixed are confirmed."

Italy's draft budget contains expensive measures for introducing a guaranteed basic monthly income of about €780 (£700) for poor families, and scrapping extensions to the retirement age.

Monday's statements followed a weekend meeting in Brussels between Mr Conte and European Commission President Jean-Claude Juncker.

Italy's populists agree new budget

Italy defies EU demand to cut budget

EU rejects debt-hit Italy's budget

It was not clear how any reduction in spending would be financed if key election promises made by the ruling populist League and Five Star parties remained untouched. Nor was it certain that the changes would be enough to satisfy the European Commission.

'Sleepwalking into instability'

The Commission announced last Wednesday that Italy was "sleepwalking into instability" and that opening a case under the eurozone's "excessive deficit procedure" was now on the cards.

Fines under that procedure could start at 0.2% of Italy's entire GDP - which would measure in the billions of euros.

The reason for Europe's concern is that while Italy is the third-largest economy in the eurozone, with a GDP of more than two trillion euro, it also has a large amount of debt.

Eurozone rules say that countries should both keep their deficit to less than 3% of GDP - which Italy's plans do - but also keep national debt to 60% of GDP or less.

Many countries exceed that debt limit without any action being taken. But at almost 132% of GDP, Italy has the second highest rate in the bloc.

When Brussels received Italy's draft budget, it said the country's refusal to deal with its debt and essentially triple the planned deficit was unacceptable.

Italy, meanwhile, maintained that investment was needed to kick-start the sluggish Italian economy and reduce the suffering of its citizens.--bbc

Can the 'broken' fashion industry become more sustainable?

The business model used by the fashion industry is broken and firms need help to adopt more sustainable practices, MPs have been told.

The warning, from a London College of Fashion academic, comes as the UK's biggest fashion retailers prepare to answer questions about their industry.

Representatives from firms including Marks & Spencer, Primark, Boohoo and ASOS will appear before MPs on the Commons environmental audit committee.

The hearing takes place on Tuesday.

At another hearing earlier this month for the committee's inquiry into the sustainability of the fashion industry, Dilys Williams, director of the college's centre for sustainable fashion, said legislation and government support was needed.

In response to a question from Green MP Caroline Lucas about whether a T shirt can be produced sustainably for £5.99, Professor Williams said: "If a business is built on fair wages and living within environmental limits then, no, we cannot sell t-shirts at the price that we currently are.

"We are buying 400% more pieces than we were less than 20 years ago ... we are spending the money on stuff that we are chucking away. The system is broken and it cannot continue as it is. Most businesses know that, but it is about helping them to make that transition to a new form of business."

This era should be seen as a "blip in fashion history", Prof Williams told MPs.

Fast fashion is harming the planet, MPs say

The fight to end the silence on fashion waste

Stella McCartney and Ellen MacArthur call for fashion sustainability

Phoebe English, a south London-based designer, told the hearing that high street retailers know "their business models are just not sustainable" because young people's shopping habits are changing.

"They will not be going into Primark and coming out with five bags of clothes where garments have cost them five or six quid to purchase and buying multiple clothes - the same clothes in different colours. It is just not how people will be shopping in the future and they know their time is coming up," she said.

One way of reducing the amount of disposable fashion could be renting clothes, Ms English suggests.

Her label has been experimenting with putting pieces that cost close to £1,000 on a hiring website, which she says allows consumers to enjoy exciting designs without paying huge sums only to have clothes sit in a wardrobe after being worn once or twice.

"With hiring you get that endorphin high constantly because you can have a new thing within your purchasing power, which can help transform you as a person and make you feel better and make you look stronger and more positive, and you can do it more regularly," Ms English told MPs.

"It is a really exciting business plan that could absolutely be implicated within the high street and it definitely should be."

Claire Bergkamp, director of innovation and sustainability at Stella McCartney, said reselling and rental are ways of disrupting the fast fashion model: "There is a generation now that has probably never seen anything outside of lower-quality product."

The members of the environmental audit committee have written to the UK's biggest fashion retailers asking how they can reduce the environmental harm.

"Three-in-five garments end in landfill or incinerators within a year ... half a million tonnes of microfibres a year enter the ocean. Doing nothing is not an option," chair Mary Creagh told the BBC last month.

Their questions to retailers include whether they pay the living wage and ensure child labour is not used in factories; whether they recycle materials and encourage recycling; how they are reducing the flow of microfibres into oceans and whether they incinerate unsold or returned stock.

Earlier this year it emerged that Burberry destroyed unsold clothes, accessories and perfume worth £28.6m in 2017 to protect its brand and maintain its exclusivity.

Orsola de Castro, co-founder of activist group Fashion Revolution, has called burning and sending stock to landfill as fashion's "dirtiest open secret".

Burberry is unusual in disclosing the practice, however. Just six of the 35 high-end designers and high-street retailers contacted by the BBC earlier this year gave breakdowns or further information. The rest said they could not help or did not respond at all.

The fashion industry is taking steps to reduce the environmental impact of clothing, according to the British Retail Consortium. It says members are now designing products that are made to last and encouraging customers to return unwanted clothes for reuse.--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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