Major International Business Headlines Brief::: 02 October 2018

Tue Oct 2 07:32:50 CAT 2018

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw> Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts        <http://www.twitter.com/BullsBears2010> Twitter         <https://www.facebook.com/BullsBearsZimbabwe> Facebook           <http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn          <mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Major International Business Headlines Brief::: 02 October 2018

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

*  Zimbabwe's economic reform plan to push GDP growth to 5 pct - cenbank

*  Marriott International to increase its Africa hotels by 50 pct by 2023

*  South African state pension fund's assets grow 8.6 pct

*  Ugandan shilling trades steady amid flat appetite for hard currency

*  South African rand dips as dollar dominates, stocks inch up

*  Passengers stranded as airline collapses

*  South Africa looks to kickstart its biofuels industry

*  Zambia to introduce sales tax next year to boost revenues

*  Sudan to print 100-pound banknotes to ease liquidity crunch

*  Donald Trump says new trade deal is 'most important ever'

*  GE chief executive departs amid profit warning

*  Will Facebook be fined after hack attack?

*  Chancellor warns over 'stalling' digital tax talks

*  Can Trump really cut the US trade deficit?

*  Tesco Bank fined £16.4m over cyber-attack

 <mailto:info at bulls.co.zw> 

Zimbabwe's economic reform plan to push GDP growth to 5 pct - cenbank

HARARE (Reuters) - Zimbabwe’s economy will grow faster than expected in 2018, from an estimate of 4.5 percent to 5 percent, the central bank said on Monday as the new government implements reforms to kick-start growth that has languished for more than two decades.

Reserve Bank Governor John Mangudya, in his first post-election monetary policy statement, said rebalancing the economy would require “painful measures”.

He announced a plan to separate local and foreign currency bank accounts and a new tax on goods trucks as part of measures to ease the shortage of U.S. dollars since the country dumped its own currency in 2009.

 <mailto:info at bulls.co.zw> 

Marriott International to increase its Africa hotels by 50 pct by 2023

NAIROBI (Reuters) - Marriott International plans to increase its hotels in Africa by 50 percent in the next five years, opening new facilities in markets where it already operates and venturing into new ones like Mozambique, the company said on Monday.

Global hotel chains have been increasing their investments in Africa in recent years to take advantage of fast expanding economies and improving transport links.

Marriott said it had signed deals with partners which will see it increase its hotels in Ghana, Kenya, Morocco, South Africa, and mark its entry into Mozambique.

“The signings put Marriott International on track to increase its portfolio by 50 percent with over 200 hotels and 38,000 rooms by 2023 estimated to generate 12,000 new job opportunities,” the company said in a statement.

Other chains which have recently announced African expansion plans include AccorHotels, which has more than 100 hotels in Africa and has earmarked $1 billion for expansion on the continent.

The Bethesda, Maryland-based company has a portfolio of 6,700 properties in 130 countries, including 21 countries in Africa.

South African state pension fund's assets grow 8.6 pct

JOHANNESBURG (Reuters) - The value of assets managed by South Africa’s state-owned pension fund rose by 8.6 percent in the year to March 2018, supported by a diversified investment strategy, the fund said in its latest annual report on Monday

The Public Investment Corporation (PIC), which manages pensions of civil servants and is Africa’s biggest pension fund, said assets under its custody grew to 2.08 trillion rand ($147 billion) from 1.91 trillion rand the year before.

“Through prudent investment decision-making, underpinned by diversification, robust investment process ... the PIC portfolio performed brilliantly in the midst of domestic and global economic and political challenges,” Chief Executive Dan Matjila said in the report.

During the year, 9.5 billion rand was approved for impact investments, which provide capital to address social and environmental issues, 5.8 billion rand for unlisted properties and 3.25 billion rand for investing in private equity and structured investment products, the report showed.

The PIC, which has major stakes in some of South Africa’s largest companies as well as other investments in sub-Saharan Africa, has come under fire this year after an opposition party alleged its CEO had misused funds and made careless investment decisions. The PIC and Matjila have denied any wrongdoing.

In August, President Cyril Ramaphosa agreed to set up a commission of inquiry into the alleged shortcomings at the PIC as ordered by the treasury in July. [nL5N1V742E]

($1 = 14.1523 rand)

South African rand dips as dollar dominates, stocks inch up

JOHANNESBURG (Reuters) - South Africa’s rand weakened on Monday as a recent rally gave way to a resurgent dollar boosted by climbing U.S. treasury yields and a dip in risk demand, as trade war concerns resurfaced.

Stocks began the week marginally higher, buoyed by general retailers.

At 1515 GMT the rand was 0.23 percent weaker at 14.1825 per dollar, having traded as firm as 14.0675 early in the session before dollar bulls came online in New York and were lured into long positions.

The greenback was up 0.2 percent against a group of major currencies.

A poor purchasing managers’ index print also put the skids on the rand as worries about the economy after its recent slide into recession kept buyers on the sidelines.

South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell slightly in September, to 43.2 from 43.4 in August, a 14-month low.

Bonds were weaker, with the yield on the benchmark government bond due in 2026 rising 2 basis points to 9.045 percent.

On the bourse, the blue chip top 40 index was 0.13 percent higher at 49,587 points and the all share index was 0.15 percent firmer at 55,789 points.

Aspen Pharmacare rose 3.1 percent, a slight recovery from its share price tumble of more than 35 percent last month after it posted full-year results and announced the baby milk disposal to French dairy group Lactalis.

“I did say it was probably overdone and the market reacted a bit harshly. It is still down 40 percent in the last month so it’s hardly a bounceback,” said Ricco Friedrich, portfolio manager at Denker Capital.

Bullion miners took a knock as gold prices slipped on the back of a firmer dollar.

South Africa looks to kickstart its biofuels industry

CAPE TOWN (Reuters) - South Africa hopes to finalise its biofuels regulatory framework by March next year, the energy minister said on Monday, almost a decade after the policy to promote biofuels like ethanol and biodiesel was first approved.

A net importer of crude, Africa’s most industrialised economy wants biofuels initially to meet two percent, or about 400 million litres, of the country’s annual fuel consumption to wean itself off oil imports and improve the trade balance.

However, regulatory uncertainty centred on financial support incentives to manufacturers has choked investment since the approval of a national biofuels strategy in 2007.

“The department will be tabling this biofuel framework to cabinet for its consideration and approval before end of March 2019,” said Jeff Radebe in a speech prepared for an energy conference in Cape Town.

The framework deals with, among other things, the mandatory purchase of biofuels by licensed manufacturers and feedstock plans that do not compromise food security, said Radebe.

Zambia to introduce sales tax next year to boost revenues

LUSAKA (Reuters) - Zambia will abolish Value Added Tax (VAT) and replace it with a non-refundable sales tax in April, Finance Minister Margaret Mwanakatwe said on Monday, a move likely to help the government boost revenue collection and bring down mounting debt.

Mwanakatwe said the Zambia Revenue Authority (ZRA) would finalise audits of all outstanding VAT refund claims and collect any unpaid taxes before making the change.

“Sales tax is coming on April 1. We do not have a manufacturing base. There is no value addition,” Mwanakatwe said at a post-budget meeting with business people.

In her budget speech on Friday, Mwanakatwe said Zambia will introduce new mining duties and increase royalties to help tackle debt.

The International Monetary Fund has put on hold talk about an aid package due to Zambia’s debt levels which it describes as unsustainable.

ZRA said in July it had paid out 4.2 billion kwacha ($338.7 million) in VAT refunds, including 2.5 billion kwacha to the mining companies in Africa’s second-largest copper producer.

Analyst Chibamba Kanyama of the Economics Association of Zambia said the introduction of sales tax would boost revenue collection.

“The major thing is that it will stop the refunds. The government will also collect more revenue because there will be less cheating as tax will be on the final product,” Kanyama said.

Mwanakatwe said the government remained committed to settling the verified VAT refund claims accumulated before changing the law.

Zambia has been withholding some money owed to mining companies in tax refunds because the correct documentation has not been provided.

Mwanakatwe also said a study to determine the cost of providing electricity by state-owned Zesco Ltd, which was due to be completed this year, would finish in April next year.

“We are currently procuring somebody from the UK to come and do the study. We have said it must be done by April,” she said.

($1 = 12.4000 Zambian kwachas)

Ugandan shilling trades steady amid flat appetite for hard currency

KAMPALA (Reuters) - The Ugandan shilling traded unchanged on Monday partly drawing support from flat appetite for hard currency.

At 0932 GMT commercial banks quoted the shilling at 3,820/3,830, same level as Friday’s close.

Sudan to print 100-pound banknotes to ease liquidity crunch

KHARTOUM (Reuters) - Sudan’s central bank will start printing 100 pound bank notes for the first time to ease a liquidity crisis exacerbated by rampant inflation, state news agency SUNA said on Sunday.

Sudan’s economy has been struggling since the south of the sprawling northeast African country seceded in 2011, taking with it three-quarters of oil output and depriving Khartoum of a crucial source of foreign currency.

In recent months local currency liquidity at commercial banks has dried up, with long queues outside of banks and daily withdrawal limits falling to as low as 500 Sudanese pounds ($17.06) in some places.

The previous largest banknote in Sudan was 50 pounds.

“Printing the 100-pound banknote is a step in the right direction, because the high inflation rate has dropped the value of the 50-pound banknote,” Abdullah al-Ramadi, a Sudanese economist, said.

The decision “will help solve the liquidity shortage that harmed the Sudanese economy and the central bank has to increase the money supply to overcome the liquidity crisis,” al-Ramadi added.

Restrictions on how much cash is available to commercial banks are among measures aimed at curbing rampant inflation and addressing an economic crisis that could derail President Omar al-Bashir’s plan to extend his nearly three decades in power.

Early in September, 11 months after the United States lifted 20-year-old trade sanctions, Bashir dissolved his government, citing Sudan’s “state of distress and frustration”, and slashed a third of ministries to cut costs.

At over 60 percent, Sudan’s inflation rate is among the world’s highest, while its currency buys fewer than half as many dollars on the black market — which has effectively replaced the formal banking system — as it did a year ago.

Sudan’s central bank has devalued its pegged currency from 6.7 to about 29 pounds per dollar in the last year, but the black market rate is still lower, at about 45 pounds on Sunday.

Donald Trump says new trade deal is 'most important ever'

Donald Trump said the new trade deal struck with Canada and Mexico was "the most important" ever agreed by the US.

The president said the United States-Mexico-Canada Agreement (USMCA), which replaces Nafta, would bring thousands of jobs back to North America.

Speaking at the White House, Mr Trump said the new pact vindicated his threats over trade tariffs.

The new deal covered trade between the three countries worth $1.2trn and was "truly historic", he said.

It was also "the biggest trade deal in the United States history", he told a press conference.

Can Trump really cut the US trade deficit?

Who gets what from new Nafta deal?

Mr Trump spoke after earlier posting tweets claiming the new trade pact solved the "deficiencies and mistakes" in Nafta, which has governed trade between the three countries since 1994.

He said the new deal was "much more reciprocal" than Nafta, which he described as "perhaps the worst trade deal ever made".

The measures in the new deal - which Mr Trump dubbed "US MCA" - "will support many - hundreds of thousands - American jobs".

The president has adopted an "America First" policy and launched a trade war against China, as well as imposed tariffs on steel and aluminium imports from Mexico and Canada.

"Without tariffs we wouldn't be talking about a deal," Mr Trump said.

Canadian Prime Minister Justin Trudeau said the trade deal was "profoundly beneficial" to Canadians.

"We had to make compromises, and some were more difficult than others," he said. "We never believed that it would be easy, and it wasn't, but today is a good day for Canada."

However, Mr Trump said it was too soon to talk to China, on which the US has imposed three rounds of tariffs this year, about a trade deal.

"China wants to talk, very badly ... [we] can't talk now because they're not ready," Mr Trump said.

Other trading partners had been tough on the US, he said, including the European Union, which introduced retaliatory tariffs on US goods in June.

The president said he was having a "successful negotiation" with the EU.

US and Canada reach new trade deal to replace Nafta

US-China trade row: What has happened so far?

Trump and EU's Juncker pull back from all-out trade war

He said it was "privilege" for other countries to trade with the US: "So we have negotiated this new agreement [with Mexico and Canada] based on the principle of fairness and reciprocity - to me it's the most important world in trade, because we've been treated so unfairly by so many nations all over the world."

The new deal was "terrific" for all three countries, he added.

Hundreds of pages of the agreement released early on Monday contain updated arrangements for Canada's dairy industry and measures aimed at shifting lower-paid car manufacturing jobs from Mexico.

US farmers will gain access to 3.5% of Canada's dairy market worth $16bn a year, while another requirement stipulates that 40% of components for vehicles produced in the USMCA area must be made in areas paying wages of $16 an hour.

'More jobs'

Meredith Crowley, international trade economist at the University of Cambridge, said the agreement on dairy appeared be a "cosmetic concession", suggesting Canada had done well out of the pact.

She said the insertion of a minimum wage level for car parts workers could lead to similar clauses in other trade deals: "If it turns out to be very politically popular in the US it could [be used again]."

Mr Trump said the deal was a victory for farmers, car workers and the US manufacturing industry: "It means far more American jobs, and these are high-quality jobs."--bbc

GE chief executive departs amid profit warning

General Electric has ousted its chief executive, installing new leadership for the second time in two years as it struggles to return to growth.

Larry Culp, a GE board member who ran US manufacturer Danaher for more than a decade, is to replace GE veteran John Flannery, effective immediately.

Shares surged almost 10% on the news, although the firm also warned it would fall short of its profit forecasts.

Mr Flannery had been in the role for less than two years.

He took over from veteran chief executive Jeff Immelt, who had led the US industrial giant since 2001.

Last year, Mr Flannery announced a turnaround plan aimed at simplifying the business model of the conglomerate, which had grown to encompass everything from light bulbs to loans.

Since then, GE has announced the sale of several divisions, including its rail and health technology units.

However, the disposals have failed to rebuild investor confidence and shares have almost halved in the past 12 months.

In June, the Dow Jones Industrial Average cut the company from its 30-company stock index - a move that reflected its shrinking position in the US economy.

General Electric faces fines over French jobs pledge

General Electric drops out of Dow index

Mr Culp, 55, who will be chairman as well as chief executive, said GE "remains a fundamentally strong company with great businesses and tremendous talent".

It remains committed to its spin-off strategy, he added. That will leave it focused on areas such as jet engines, power plants and renewable energy.

"We have a lot of work ahead of us to unlock the value of GE. I am excited to get to work," Mr Culp said.

Power problems

GE has been dogged by problems at its power division, which makes machinery for power plants and has struggled amid tepid demand.

On Monday, the firm said it expected to write down $23bn in impairment charges on its power division.

The company has also appointed former American Airlines chief executive Thomas Horton as lead director on its board.--bbc

Passengers stranded as airline collapses

A budget airline that began offering long-haul flights from UK airports earlier this year, including Stansted to the US, has collapsed.

Primera Air said it was ceasing all operations at midnight on Monday after 14 years of operations.

Flights to Washington and New York due to leave Stansted on Monday night were grounded and passengers have been told not to go to the airport on Tuesday.

One flight from Birmingham to Malaga arrived on Monday evening.

The airline, which had 15 planes, began offering low-cost flights from Stansted and Birmingham to the US and Canada earlier this year.

Flights from Manchester to Malaga were due to start later this month.

Most of the airline's business involved taking Scandinavian holidaymakers to destinations such as Spain, Greece, Italy, Egypt and Turkey.

Canadian Angela Dorau was in a queue to board a plane from Paris to Toronto with her husband when there was an announcement saying the flight had been cancelled.

She said: "Everybody was stranded. Currently my husband and I are in a dumpy motel by the airport trying to frantically scrounge together the funds to pay for another way home."

They are yet to find an alternative flight home - and she says what was supposed to be a budget trip looks like costing them an extra €2,000.

The Danish-registered airline - which started in 2003 as a charter provider - is not part of the Civil Aviation Authority's ATOL Protection scheme, which covers only passengers booked on package holidays.

The regulator has advised passengers who have travelled on an outward Primera flight they will need to make their own arrangements to return to the UK.

People who had booked directly with the airline on future flights will not be covered either, the CAA advises.

Passengers who paid by credit card may be protected by Section 75 of the Consumer Credit Act 1974 and are advised to check with card issuers. Similar cover may apply if a Visa debit card was used.

'A horrible experience'

Stranded in Malaga as our flight has now been cancelled for Monday 8 October. Will have to try and get other flights home. Sally James

My daughter Catherine is now stuck in Spain. She flew out on Saturday and was due to come back this Thursday. Antony Meadley

I was on a flight back to Newark (New Jersey) that was meant to depart at 5:55...an announcement went out at around 5:30. No one was given any plans, and everyone was just asked to leave...a horrible experience. Nickolaus Lachman

The airline said it had failed to secure long-term financing, meaning it had "no choice" but to file for bankruptcy.

Primera's decision to start competing with other low-cost long-haul operators such as Norwegian and Wow appears to have led to its demise.

Signs that the airline was in trouble came in August, when it said short-haul flights from Birmingham to seven European destinations would end on 3 September.

It also blamed the late arrival of new aircraft from Airbus that forced it to cancel flights and lease planes.

When it began long-haul operations from Stansted in May, Primera was offering flights to New York's Newark airport, Boston, Washington DC and Toronto starting at £149 each way.

It had planned to start flying from Madrid to New York, Boston and Toronto next month from €149 each way.--bbc

Will Facebook be fined after hack attack?

Following the revelation that up to 50 million Facebook accounts may have been accessed in an attack due to a weakness in the platform's code, many questions remain about the breach.

In theory Facebook could be fined if it is found to be in breach of GDPR, Europe's data protection rules.

It has not revealed whether other services which people use their Facebook log-ins for - such as Tinder and Spotify - have also been affected.

Facebook has now fixed the issue.

People potentially affected were logged out of their accounts on Friday and those definitely affected were notified.

Facebook says it has identified 50 million accounts which were certainly involved in the breach, with an extra 40 million also warned as a precautionary measure.

It is also unknown whether networks of friends were also affected, as their data would have been visible to anyone with access to an individual's account.

Up to 50m Facebook accounts attacked

Will Facebook be fined?

The Wall Street Journal reports that Facebook could face a fine of up to $1.63bn (£1.25bn) - 4% of its annual global turnover - which is the absolute maximum that could be imposed by the Irish Data Protection Commissioner if the firm is found to be in breach of Europe's GDPR privacy legislation.

As Facebook Europe is based in Ireland, this is the authority it will deal with.

There are rules regarding the reporting of such a breach and so far Facebook has stuck to them.

An information breach is supposed to be reported within 72 hours of discovery and this is what Facebook appears to have done - it says it discovered the breach on Tuesday, notified the commissioner on Thursday and alerted the public on Friday after fixing the vulnerability.

The Information Commissioner says it recognises that firms may not have all the answers regarding an incident within 72 hours, and that information can be shared as it is discovered - and Facebook has admitted it is "at the very start" of its investigation.

Data protection adviser Jon Baines from the law firm Mishcon de Reya LLP told the BBC it was impossible to know how likely a fine is at this early stage.

"No matter how good an organisation's response is to a personal data breach, it is what went before that will count against it," he said.

"So, if Facebook is found not to have taken sufficiently robust measures [to prevent the vulnerability], it may be held to have infringed GDPR, even if its response since has been exemplary."

Could it face legal action from its two billion members?

A class action lawsuit has already been filed in California by two Facebook users who claim the firm was negligent in allowing accounts to be compromised, reports Bloomberg.

The action represents all Facebook users in the US, the paperwork says.

It accuses Facebook of a "continuing and absolute disregard" in its treatment of account holders' personal information.

Who did it?

Facebook said it doesn't know who was behind the attacks or where they are based.

It also said it doesn't know what - if any - personal information was accessed.

However it did acknowledge that the weakness in its code dates back to a change that was made in July 2017, meaning the accounts were vulnerable from that time.

While it was quite a complex process, it has been reported that there were videos on YouTube explaining how to hack the platform.

Are other platforms affected?

The BBC has asked Spotify and Tinder, both of which can be accessed via a Facebook log-in, whether their services have been affected as a result of the breach.

"It appears it could very well affect other platforms if you have used Facebook as your means of logging in," said prof Alan Woodward, a cyber-security expert from Surrey University.

"Some password managers have been issuing warnings today to go change your passwords for that very reason."

Prof Woodward advised creating individual log-ins for each service.--bbc

Chancellor warns over 'stalling' digital tax talks

Urgency is needed in talks to reform the way big technology firms are taxed, the Chancellor of the Exchequer, Philip Hammond, has warned.

Google, Facebook, Apple and Amazon have been criticised for paying only modest amounts of tax in the UK on huge sales.

The chancellor said international agreements were needed to tackle the problem, but "the time for talking is coming to an end".

The next step would be a Digital Services Tax, he said.

Technology firms have argued they follow tax rules and have an obligation to shareholders to be tax efficient.

Their tax affairs sometimes involve complicated, but legal, arrangements that divert sales and profits to lower tax nations.

Should tech firms pay more tax?

Amazon tax bill falls despite profit jump

The OECD, which co-ordinates economic policy among rich nations, is trying to tackle the problem, but is struggling to reach a consensus among its 36 members.

The European Commission is also trying to come up with a common policy and has proposed an EU-wide 3% digital tax, but has faced opposition from some member states.

'Stop stalling'

Smaller EU states have argued that the EU measures should be part of a global reform.

However, during his speech at the Conservative Party Conference, the chancellor said action was needed.

"The time for talking is coming to an end," he said.

"The stalling has to stop. If we cannot reach agreement the UK will go it alone with a 'Digital Services Tax' of its own."--bbc

Can Trump really cut the US trade deficit?

President Trump has finally got a three-way agreement to change Nafta, the North America Free Trade Agreement.

Canada and Mexico have agreed to reform the deal that originally came into force in 1994.

He certainly got some specific provisions in the new trade agreement with Canada and Mexico that he will regard as important achievements.

To name a few:

Cars will have to be 75% made in North America if they are to be transported cross borders duty-free - an increase from 62.5%

70% of the steel and aluminium will have to be North American, and 40% of the labour content will have to be paid at $16 an hour or more

Those provisions will make it harder to source components or materials outside North America. China is the obvious, though not the only, country likely to be affected.

There will be better access for American farmers to Canada's highly protected dairy market.

Trump says new trade deal is 'most important ever'

Who gets what from new Nafta deal?

Politically, this is an important achievement for President Trump. Renegotiating Nafta was a priority for him when he took office.

He has described it as "the single worst trade deal ever approved in this country". The new one is "wonderful", he tweeted.

With the mid-term Congressional elections only a few weeks away, it is clearly helpful for to have something specific to show to the voters.

But there is a wider objective behind his trade policy.

The US has a trade deficit. It imports more than it exports and Mr Trump wants to change that. He wants to reduce the deficit with individual trade partners and with the rest of the world as a whole, or preferably eliminate these imbalances altogether.

He sees those imbalances as the result of unfair trade practices by other countries - notably China - and of trade agreements that are unfair to the US.

That has been behind many of his trade initiatives: pulling out of the Trans-Pacific Partnership; new tariffs on aluminium and steel imports; and tariffs on a wide range of imports from China.

It is impossible to judge the success or otherwise of this new agreement against the benchmark of whether it has changed the trade balance. It hasn't even had Congressional approval yet and will be several years before all the provisions come into effect.

But the approach begs a fundamental question: are trade imbalances the result of trade policies? It seems obvious that they would be, but that is not the view of most economists.

A report from the Congressional Research Service put it like this: "The Trump Administration's approach contrasts with the views of most economists, who argue that the overall US trade deficit stems from US macroeconomic policies that create a savings and investment imbalance in which domestic sources of capital are not sufficient to meet domestic capital demands."

Or to put it another way, the counterpart to the trade deficit is that the US saves less than it invests.

Yet another way of putting it would be a country that spends more than it produces will have a trade deficit.

One way that a country can spend more (or save less) is if the government reduces taxes, or increases spending. If there is no offsetting change in private sector spending or investment, then lower tax revenue would mean a larger trade deficit.

Another way of looking it: if people have more money to spend because they are taxed less, they will spend some of it on imported goods.

President Trump has cut tax rates on incomes and company profits. He expects the move to strengthen economic growth so much that it will generate more tax revenue. Views are divided on how realistic that hope is, but many economists doubt that it will work.

If he does end up increasing government borrowing, it would tend to boost the trade deficit. That is exactly the opposite of what he is trying to do with his assertive approach to trade policy.

The economic relationships - the questions of what causes what - are complex. So it is not necessarily the case that what he is doing is counterproductive by his own objectives. But it might turn out to be.--BBC

Tesco Bank fined £16.4m over cyber-attack

Tesco Bank has been fined £16.4m by the UK financial regulator for failings surrounding a cyber-attack on its customers in November 2016.

The Financial Conduct Authority said the bank had failed to exercise due skill, care and diligence in protecting its personal current account holders.

The fraudsters got away with £2.26m. Tesco Bank said all the money had been refunded to account holders.

It added it was "very sorry" for the impact the attack had had on customers.

'Too little, too late'

The FCA said that the attack had been largely avoidable and that Tesco had not responded to it with sufficient rigour, skill nor urgency.

Mark Steward, executive director of enforcement and market oversight at the FCA, said the regulator would not put up with such behaviour.

"The fine the FCA imposed on Tesco Bank today reflects the fact that the FCA has no tolerance for banks that fail to protect customers from foreseeable risks," he said.

"In this case, the attack was the subject of a very specific warning that Tesco Bank did not properly address until after the attack started. This was too little, too late. Customers should not have been exposed to the risk at all."

The FCA said cyber attackers had exploited deficiencies in Tesco Bank's design of its debit card, its financial crime controls and in its financial crime operations team.

Apology

Tesco Bank said it been the victim of a "sophisticated criminal fraud".

While it did not lead to the theft or loss of any customers' data, there were 34 transactions where funds were debited from customers' accounts. The bank added that other customers had their normal service disrupted.

Gerry Mallon, Tesco Bank's chief executive, said:-"We are very sorry for the impact that this fraud attack had on our customers. Our priority is always the safety and security of our customers' accounts and we fully accept the FCA's notice.

"We have significantly enhanced our security measures to ensure that our customers' accounts have the highest levels of protection. I apologise to our customers for the inconvenience caused in 2016."

Tesco Bank's co-operation with the FCA's inquiry, and its agreement to an early settlement, meant the fine was reduced from £33.6m.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

 <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.

(c) 2018 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:  <mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77 344 1674

Invest Wisely!

Bulls n Bears 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AFQjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:            <http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:      <http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181002/61b271f9/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181002/61b271f9/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 45474 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181002/61b271f9/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29391 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181002/61b271f9/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181002/61b271f9/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29420 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181002/61b271f9/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181002/61b271f9/attachment-0011.jpg>