Major International Business Headlines Brief::: 11 October 2018

[Bulls n Bears]

 <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::: 11 October 2018

 


 

 


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

 


 

 


 

 

*  Dollar shortage "short-term problem" for miners in Zimbabwe- minister

*  South Africa should seek damages from KPMG over bank graft: central bank probe

*  IMF, World Bank endorse Zimbabwe's plan to clear arrears -finance minister

*  Angola secures $2 bln in infrastructure financing from China

*  South Africa's rand weakens, stocks hit three-month low

*  Buoyant Tunis bourse hopes for state IPOs to draw investors

*  South African business confidence index rises in September

*  Sarwa Capital IPO on Egyptian stock exchange covered 30 times - traders

*  Nigeria's cenbank head to meet MTN and banks over $8.1 bln repatriation row -sources

*  World's top traders divided on oil outlook as Iran sanctions loom

*  Wall Street beating takes down Asian stocks

*  BMW to spend $4.1bn to take control of its China venture

*  James Murdoch tipped to lead Tesla board?

*  Countdown on for world's longest non-stop flight

*  Chinese man charged with US aviation 'espionage'

*  EU pushes for new tax on tech giants 'by Christmas'

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

Dollar shortage "short-term problem" for miners in Zimbabwe- minister

(Reuters) - A dollar shortage that has sparked outrage from mining companies operating in Zimbabwe is a “short-term problem” that will be remedied by a stronger economy, the mines minister told Reuters.

 

Zimbabwe is suffering acute shortages of U.S. dollars, deterring foreign capital from helping the ailing economy recover after 20 years of economic hardship under former leader Robert Mugabe.

 

“The situation at the moment is demand for foreign currency is bigger than supply and essentially as the economy advances you will find that there will be interest in foreign currency generation,” Winston Chitando said in London.

 

“It’s a short-term problem and it’s going to work itself out as the economy grows.”

 

Companies are allowed to retain 30 percent of foreign currency they earn, Chitando said, and can make an application to the Treasury if they need more.

 

Zimbabwe holds the second largest deposits of platinum and chrome after South Africa and has the potential to be a major lithium supplier.

 

Foreign investor interest in the country is growing after Mugabe’s removal in a coup last November and President Emmerson Mnangagwa’s election in August but projects are constrained by lack of funding.

 

Zimbabwe needs up to $11 billion to modernise its mines, the head of the country’s Chamber of Mines said in May.

 

A Zimbabwe economic plan released on Friday said the government would back initiatives by mining houses operating in Zimbabwe to float syndicated bonds offshore, “as part of companies’ efforts to raise capital offshore to finance re-tooling of antiquated mines.”

 

“This will initially target raising US$1 billion, with the instrument guaranteed by Government,” the document said.

 

Mining investors have said they need regulatory certainty and the removal of foreign exchange restrictions that limit how much money companies can take out of Zimbabwe due to the dollar shortage.

 

For mining firms, dollar shortages are so severe that there is a risk of some mines shutting down, an industry source said.

 

Zimbabwe abandoned its own hyperinflation-hit currency in 2009 in favour of the U.S. dollar, but a widening trade deficit, lack of foreign investment and a decline in remittances by Zimbabweans abroad have helped to fuel foreign currency shortages.

 

Other forms of payment used in Zimbabwe are bond notes and dollars stored electronically in bank accounts, known as “zollars”.

 

On Tuesday, Zimbabwe’s gold miner RioZim said it would take legal action to force the central bank to pay it in dollars for part of its output.

 

Meanwhile, platinum miners will make a decision by the end of November on plans to jointly process platinum locally to avoid a 15 percent tax on exports of the raw mineral due to be in place by January 2019, Chitando said.

 

Platinum miners operating in Zimbabwe including Anglo American Platinum, the local unit of Impala Platinum , Zimplats and Sibanye-Stillwater currently send output to refineries in South Africa.

 

Impala Platinum spokesman Johan Theron said it was a “legitimate aspiration” for miners to process platinum in Zimbabwe, but added that “any expenditure in refining competes directly with expenditure in growing the production base”.

 

“Capital competes across the value chain and you can’t have it both ways,” he said.

 

Chitando also said a mining bill that was sent back to parliament by Mnangagwa should be reviewed by the national assembly by December following amendments. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa should seek damages from KPMG over bank graft: central bank probe

JOHANNESBURG (Reuters) - South Africa should seek damages from global auditor KPMG for the role it played in a corruption scandal that saw at least 1.9 billion rand ($130 million) stolen from local bank VBS, a central bank investigation published on Wednesday said.

 

The KPMG logo is seen at the company's head offices in Parktown, Johannesburg, South Africa, September 15, 2017. REUTERS/Siphiwe Sibeko/File Photo

The probe, carried out by a team of lawyers and forensic investigators on behalf of the South African Reserve Bank (SARB), is the latest headache for KPMG, which has lost more than a dozen clients as questions have been raised about its ethical conduct in the country.

 

The SARB commissioned the investigation into VBS after it was placed under curatorship in March.

 

KPMG, which audited the bank’s financial results, said it had noted the investigation’s publication. Earlier this year it announced changes to its corporate governance to try to restore the reputation of its South African business.

 

“We will only be in a position to comment once we have studied the full contents of the report,” the auditor said in an e-mailed response to questions.

 

KPMG South Africa has already cut jobs and lost business over work done for a company owned by the Gupta family, friends of scandal-plagued former president Jacob Zuma, who were accused of unduly influencing the award of billions of rand in government contracts. Zuma and the Guptas deny wrongdoing.

 

Advocate Terry Motau, who led the VBS probe, recommended that criminal charges be brought against the more than 50 individuals and entities who orchestrated and benefited from the VBS theft.

 

His investigation report, entitled “The Great Bank Heist”, was published by the SARB on its website, an unusual step which suggests the regulator wants action to be taken on its findings.

 

PUBLIC OUTCRY

“I recommend further that an auditor’s liability claim be instituted by the Prudential Authority, the curator and National Treasury against KPMG for recovery of their respective damages,” Motau wrote in the report.

 

He did not specify how much money the state should seek in damages from KPMG.

 

Two KPMG partners who had dealings with VBS, Sipho Malaba and Dumi Tshuma, resigned after failing to disclose financial interests in VBS.

 

Motau said the scale of the looting from VBS would not have been possible had KPMG not signed off on the bank’s financial results.

 

“Malaba was aware that there was a cash hole when, on 17 July 2017, he gave his audit opinion in respect of the annual financial statements for the year ended 31 March 2017,” he wrote in the report. “I accordingly find that Malaba committed fraud.”

 

Malaba did not respond to a request for comment sent via his LinkedIn social media account. During the investigation, Malaba blamed failures in the VBS audit on another auditor and said he could not be held responsible for reckless lending by VBS, according to Motau’s report.

 

The VBS saga has prompted a public outcry in South Africa partly because many municipalities had deposits with the bank.

 

Motau’s probe found that VBS actively sought to attract deposits from municipalities and other state entities and that bribes were paid to solicit the money. Bribes were also paid to people who became aware that money was being stolen for them to keep silent, it also found.

 

The finance ministry, which placed the bank under curatorship, did not immediately respond to a request for comment on Motau’s findings.

 

VBS was also in the spotlight when it gave Zuma a 7.8 million rand loan to reimburse the state for upgrades to his personal home.

 

($1 = 14.6445 rand)

 

 

 

IMF, World Bank endorse Zimbabwe's plan to clear arrears -finance minister

HARARE (Reuters) - The World Bank and IMF have endorsed Zimbabwe’s road map to clear more than $2 billion in foreign arrears at a meeting in Indonesia on Wednesday, the finance minister said, adding that the lenders had also backed his two-year economic recovery plan.

 

President Emmerson Mnangagwa has promised to revive the struggling economy, pay foreign debts that the country has defaulted on since 1999 and restore ties with West after becoming a pariah under Robert Mugabe’s near four-decade rule.

 

Finance Minister Mthuli Ncube, who is attending the International Monetary Fund (IMF) and World Bank meetings in Bali, Indonesia, said in a statement his plans to clear the arrears to the World Bank, African Development Bank and European Investment Bank had been accepted.

 

“All the cooperating partners and creditors present uniformly expressed their support for Zimbabwe and its arrears clearance Road Map,” Ncube said.

 

The lenders and Western donors also urged Ncube to “judiciously” implement his two-year economic recovery plan announced last Friday.

 

Ncube’s plan will see cuts on spending and the government’s wage bill and privatisation of loss-making state-owned firms.

 

Zimbabwe, which adopted the U.S. dollar after hyperinflation left its own currency worthless in 2009, is gripped by acute shortages of cash dollars. Prices of basic goods and medicines have risen in the last few days.

 

 

 

Angola secures $2 bln in infrastructure financing from China

LUANDA (Reuters) - Angola has secured $2 billion in Chinese financing from the China Development Bank for infrastructure projects on President João Lourenço’s first visit to Beijing, Angola’s state newspaper Jornal de Angola reported on Wednesday.

 

Details of the terms of the financing were not released. The finance ministry did not immediately respond to a request to confirm the information.

 

China is increasingly flexing its financial muscle in Africa, funding massive infrastructure projects across the continent.

 

Angola, Africa’s second largest oil producer, is in the process of trying to diversify its economy since a fall in the price of crude in 2014 plunged it into recession. Inflation is running at more than 20 percent per year and at least one in five of workers are jobless.

 

Lourenço, who took power a year ago after the 38-year rule of Jose Eduardo dos Santos, has promised to oversee an “economic miracle” by opening up the country to foreign investment and prioritising sectors such as agriculture and tourism. So far growth has remained sluggish.

 

Investors are increasingly concerned by Angola’s growing debt burden, which the government said earlier this year will rise to $77.3 billion, or 70.8 percent of GDP, by the end of 2018. Of that, around $21.5 billion was already owed to China before Lourenço’s visit there.

 

 

 

South Africa's rand weakens, stocks hit three-month low

JOHANNESBURG (Reuters) - South Africa’s rand weakened on Wednesday, giving back gains it made following Tito Mboweni’s appointment as fiance minister, with investors banking profits ahead of a ratings decision on Friday.

 

In the equities market, stocks were hammered by losses of market-heavyweight Naspers.

 

At 1643 GMT the rand was 0.81 percent weaker at 14.6725, having rallied as far as 14.5200 overnight on some investor relief over the appointment.

 

The currency breached the crucial 15.00 level on Monday on reports Nhlanhla Nene wanted to quit the Treasury, with selling pressure exacerbated by a stronger dollar and investor weariness ahead of an expected ratings review by Moody’s on Friday. With the Treasury impasse out of the way dollar longs quickly resumed supremacy, spurred by U.S. bond yields hovering at multi-year peaks, diminishing the carry trade appeal of currencies like the rand.

 

Bonds also paused their rally, with yield on the benchmark 2026 paper up 1 basis point to 9.23 percent

 

The Johannesburg All-Share index fell to a near three-month low and the Top-40 index declined to a six-month low.

 

The all-share index weakened 2.54 percent to 52,813 points, while the Top-40 index fell 2.8 percent to 46,625 points.

 

Naspers bore the brunt of China’s Tencent after the gaming and social media giant stumbled to its lowest level since July last year as JP Morgan cut its price target to HK$400 from HK$460.

 

Naspers, which owns a 31.2 percent stake in Tencent, tumbled 6.47 percent to 2,656.98 rand, the lowest since July 2017.

 

Weaknesses were also exacerbated by a general decline in global technology firms.

 

“The JSE All-share index is in the red again, thanks mostly to a further decline in Tencent which leads to further weakness in Naspers,” said equities asset manager Vestact in a note.

 

Some of the dual-listed companies mirrored global stocks, with jeweller Richemont down 4.23 percent at 108.30 rand and packaging and paper firm Mondi, which is also listed in London, down 6.99 percent to 353.03 rand.

 

 

Buoyant Tunis bourse hopes for state IPOs to draw investors

TUNIS (Reuters) - Tunisia’s stock index is up an impressive 20 percent this year, but is being held back by the fact that the biggest firms are all state-owned and unable to attract private investment, according to the head of the Tunis Stock Exchange.

 

A market capitalisation of just $10 billion makes the bourse one of the smallest in North Africa, yet it was the region’s strongest performer in the first nine months of 2018.

 

In an interview, Bilel Sahnoun said this growth had been driven by reforms including “parity between local and foreign investors and a strong IT management system”.

 

With its 81 listed small and medium-sized companies, the exchange accounts for only 10 percent of investment in the domestic economy.

 

The financial intermediary and investment manager Tunisie Valeurs is the only company to have conducted an IPO so far this year, and a second one will be listed by the end of this year.

 

“Between three and five other companies will be listed in textile and real estate next year, which will raise the number of listed companies to about 85-86 compared to less than 50 in 2011,” Sahnoun said.

 

But he hopes that privatisations could double this share within five years.

 

“The Tunis stock market is not on the radar of some big investors because it ... does not include large companies able to attract those who can create investment and help to promote economic growth and wealth creation,” he said.

 

But the path to securing those listings is a rocky one.

 

Prime Minister Youssef Chahed is committed to “reform” of the large state sector, as is the Islamist Ennahda party that is in coalition with his Nidaa Tounes, but the subject is highly sensitive.

 

In 2011, Tunisie Telecom cancelled plans for a joint IPO in Tunis and Paris after consultations with trade unions, who had been threatening industrial action if there were job losses.

 

Fearing new attempts at privatisation, the UGTT umbrella union has called a national strike for Oct. 24.

 

In any case, political posturing ahead of an election due in a year’s time has already cost Chahed the support of his own party and left his government hanging by a thread. The chance of any attempts at even partial privatisation before 2020 at the earliest appears slim or non-existent.

 

But Sahnoun is undaunted. “Listing shares in major state companies such as Tunisie Telecom or the tobacco company (Régie Nationale des Tabacs et des Allumettes), or AGIL (the fuel distributor Société Nationale de Distribution des Pétroles) would be very beneficial to the health of these companies, the economic recovery and the image of the stock market,” he said.

 

 

South African business confidence index rises in September

JOHANNESBURG (Reuters) - Business confidence in the South African economy rose in September, helped by higher export volumes, new vehicle sales and lower inflation, a survey showed on Wednesday.

 

The South African Chamber of Commerce and Industry’s monthly business confidence index rose to 93.3 from 90.5 in August.

 

The index struck a 2-1/2 year high in January, but it fell in six out of the subsequent seven months as the euphoria surrounding the election of Cyril Ramaphosa as leader of the ruling African National Congress was derailed by weak economic data.

 

Four of the 13 sub-indices surveyed in September improved compared with August, while five were unchanged and four were negative, showing that South African businesses are still under pressure on many fronts.

 

Ramaphosa is trying to revive the economy after a decade of stagnation under former president Jacob Zuma.

 

The former trade union leader unveiled a “stimulus package” last month and has called an investment conference to drum up investor interest in South Africa.

 

“The initiatives of the stimulus package, announced by the President, should be outlined in more detail over the coming months,” the chamber of commerce said. “It remains imperative to create and build institutional capabilities to implement and translate policy, plans and ideas into actual outcomes.”

 

 

Sarwa Capital IPO on Egyptian stock exchange covered 30 times - traders

CAIRO (Reuters) - Egypt’s Sarwa Capital’s initial public share offering on the Egyptian stock exchange was covered 30.1 times, traders said on Wednesday.

 

The sale of around 295 million shares was made in both public and private offerings.

 

 

 

Nigeria's cenbank head to meet MTN and banks over $8.1 bln repatriation row -sources

LAGOS (Reuters) - Nigeria’s central bank governor is to meet representatives of telecommunications company MTN and banks on Tuesday to discuss a dispute over the repatriation of $8.1 billion, two sources with direct knowledge of the matter said.

 

The dispute is over the transfer of $8.1 billion of funds which Nigeria’s central bank said the company had sent abroad in breach of foreign-exchange regulations. Nigeria, which accounts for a third of the South African company’s annual core profit, is MTN’s biggest market.

 

The people with knowledge of the matter, who did not want to be named, said executives from MTN and the four lenders involved in the case - Standard Chartered, Stanbic IBTC Bank, Citibank and Diamond Bank - would hold talks with Nigerian Central Bank Governor Godwin Emefiele on Tuesday.

 

MTN declined to comment and a central bank spokesman did not respond to a text message and phone calls seeking comment.

 

Shares in MTN, Africa’s biggest telecoms company, weakened more than 4 percent on Tuesday on uncertainty over the outcome of a meeting and by 1127 GMT were down 2.21 percent at 84.10 rand.

 

The stock has lost around 20 percent since the demand by Nigeria’s central bank on Aug. 29.

 

Nigeria’s central bank said the funds had been illegally moved abroad because the company’s bankers had failed to verify MTN had met all the foreign exchange regulations.

 

MTN has denied the allegations.

 

The talks in Nigeria come days after Emefiele said the bank may reduce the amount to be repatriated.

 

The money is more than half of MTN’s market capitalisation, and analysts have said the demand risked further undermining Nigeria’s efforts to shake off an image as a risky frontier market for international investors.

 

The banks involved have previously said they would engage with the country’s financial regulator.

 

 

World's top traders divided on oil outlook as Iran sanctions loom

LONDON (Reuters) - The world’s biggest trading houses said on Wednesday they saw oil prices not falling below $65 per barrel and possibly breaking above $100 next year as U.S. sanctions on Iran reduce crude exports from the Islamic republic.

 

The range of views illustrates deep uncertainty among top industry players over the outlook, given the reimposition of sanctions on Iran and forecasts of slowing economies and energy demand in 2019, potentially leading to choppy trading.

 

Oil has rallied this year on expectations the sanctions, coming into force on Nov. 4, will strain supplies by lowering shipments from Iran, OPEC’s third-largest oil producer. Brent crude last week reached $86.74, the highest since 2014.

 

Jeremy Weir, chief executive of Trafigura, said at the Oil & Money conference in London that he would not be surprised to see oil trade at more than $100 per barrel next year.

 

Among others with a relatively bullish view was Alex Beard, chief executive for oil and gas at Glencore, who forecast at the same event a mid-term oil price of $85-90.

 

“I think the sanctions will be very tough,” Beard said. “Waivers will be extremely limited if any, and I don’t see an end to it as the objective is regime change in 2019. I can’t see anything that will affect oil prices dramatically to the downside.”

 

A release of U.S. strategic oil stocks to ease the loss of Iranian supplies looked remote and would have limited impact anyway, and a plan by European nations aimed at maintaining trade with Iran was unlikely to help, he added.

 

“The European payment mechanism doesn’t shield you if you use the U.S. financial system ... you can pay but don’t expect to be on their Christmas card list,” he said.

 

Beard added that U.S. infrastructure limitations would limit U.S. crude exports that could otherwise compensate and new refining capacity coming online in 2019 would add further tightness.

 

WEAKER DEMAND

Some of the traders said, however, they expected some demand destruction in emerging economies to help cap prices.

 

In 2019, forecasters such as the International Energy Agency say emerging-market crises and trade disputes could dent global demand while rising production from outside the Organization of the Petroleum Exporting Countries adds to supply. [IEA/M]

 

The chief executive of Gunvor, Torbjorn Tornqvist, said he saw lower prices next year at $70-$75, citing a slowdown in demand growth and a well-supplied market.

 

“There will be some Iranian exports but the amount will depend on the price. If oil goes up to $100 a barrel then waivers, if it stays around $80 a barrel then no waivers,” Tornqvist said.

 

Vitol presented the most bearish views, with its chairman, Ian Taylor, forecasting a price of $65 a barrel.

 

“We’ve knocked down our demand growth forecast this year and for next year ... I think the only issue is: will the U.S. pipelines in the Permian (basin) manage to deliver a huge increase in the second half of 2019?,” Taylor said.

 

 

Wall Street beating takes down Asian stocks

Asian stocks slumped in early trade as concerns about higher US interest rates and a global trade war prompted investors to sell risk globally.

 

Markets in Asia took their cue from US stocks, which suffered their sharpest one-day falls in months on Wednesday.

 

Japan's benchmark Nikkei 225 dropped 3.9% - on course for its biggest daily drop since March.

 

In China, the Shanghai Composite fell to lowest since 2014. It was 3.9% lower and the Hang Seng dropped 3.8%.

 

The US Federal Reserve raised rates in September as the economy grows solidly.

 

US shares suffer sharpest drop in months

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

Federal Reserve raises rates again

Higher interest rates make borrowing more expensive, slowing economic activity and hurting investor appetite for risk.

 

A US-led trade war against China has also made investors worried about the outlook for global growth.

 

Elsewhere in Asia, South Korea's benchmark Kospi index fell 3.4% and Australia's S&P/ASX 200 index fell 2.4%.

 

Trump attacks 'crazy' Fed

US markets have done better than expected this year, bouncing back after turmoil early in the year to set new records over the summer.

 

But the Federal Reserve is raising interest rates, and more is likely to come.

 

The Fed last month abandoned its description of its policy as "accomodative", reflecting a view that the economy is strong enough not to need the kind of stimulus it received in the after-math of the financial crisis.

 

Asia benefited from low interest rates globally post-crisis, as investors sought to put their money in markets offering higher returns.

 

The prospect of dwindling US stimulus has been compounded by a trade war between the world's two largest economy - which the IMF has warned could harm growth.

 

US President Donald Trump has been particularly critical of the Fed's rate rises, breaking with tradition in the US where presidents are expected to respect central bank independence.

 

"The Fed is making a mistake," he told reporters on Wednesday. "I think the Fed has gone crazy."

 

The stock market fall came ahead of America's corporate earnings season, when companies will provide updates to investors about their outlook for the rest of the year.--BBC

 

 

BMW to spend $4.1bn to take control of its China venture

Carmaking giant BMW wants to take control of its joint venture in China and is set to pump billions more into its production capacity in the country.

 

The German firm will spend €3.6bn ($4.16bn; £3.14bn) to up its stake in Brilliance Automotive from 50% to 75%.

 

The Mini maker will also invest more than €3bn to expand its existing production capacity in China.

 

The move comes amid China's plans to relax rules for foreign car companies operating in its enormous market.

 

Currently, foreign firms that want to make cars in China must have a joint venture with a local firm, but they are not permitted to own more than a 50% stake in that firm.

 

This rule has been in place since 1994 and has left many foreign firms frustrated. It has also restricted big global brands from gaining full access to the world's biggest car market.

 

BMW said the deal with Brilliance Automotive, which is subject to regulatory and shareholder approval, would not close until 2022. That is when the 50:50 joint venture requirement for car manufacturing in China ends.

 

BMW to shut Mini plant for month post-Brexit

Electric Minis to be built in China

Car investment slumps on 'Brexit worries'

"The total yearly production capacity of the BMW Brilliance Automotive (BBA) plants [in China] will be gradually increased to more than 650,000 units in total from the early 2020s," BMW's chairman Harald Krüger said in a speech on Wednesday in China.

 

He said BBA was the cornerstone of BMW's ongoing success in China - its largest single market - and that with the increased investment the German firm wanted to make, it would be able to produce up to 100% electric vehicles.

 

The Chinese government has said it wants 20% of cars sold to be electric or rechargeable-hybrid vehicles by 2025.

 

In February, BMW said it would build electric-powered Mini cars in China with another firm, Great Wall Motor. Cars made under than partnership are aimed at the Chinese market.

 

Brilliance China Automotive Holdings are the whole owners of BMW Brilliance Automotive.--BBC

 

 

James Murdoch tipped to lead Tesla board?

James Murdoch joined the Tesla board last year.

James Murdoch could become the next head of Tesla's board of directors.

 

He is "the favourite" to replace Elon Musk, who currently serves as both board chairman and chief executive, the Financial Times has reported.

 

However, Mr Musk said on Twitter that the FT report was "incorrect" without providing any further detail.

 

Mr Musk agreed to give up the chairmanship last month to resolve claims of fraud brought by US financial regulators.

 

The settlement requires Tesla to install an independent chairman, among other penalties.

 

It is intended to create more oversight of Mr Musk, who provoked the charges when he claimed on Twitter that he had secured funding and might take the firm private.

 

The terms of the settlement with the Securities and Exchange Commission are awaiting court approval. A federal judge is due to review the settlement on Thursday.

 

The FT report cited two anonymous sources, but added that other names remain under consideration.

 

The New York Times had previously reported that Mr Murdoch's name had been discussed for the post.

 

Who is James Murdoch?

Mr Murdoch, the younger son of Rupert Murdoch, has served on Tesla's board since 2017.

 

He was one of two new members the firm appointed last year after criticism that the board - which includes Mr Musk's brother and a close business partner - needed to show more independence.

 

The appointment earned him $1.9bn in compensation, of which all but $10,000 came in the form of shares.

 

Mr Murdoch is currently chief executive of the US media giant 21st Century Fox, but he will step down after the firm completes the sale of much of its business to Walt Disney.

 

He resigned from the board of Sky this week, following Comcast's successful bid for the European satellite broadcaster.--BBC

 

 

 

Countdown on for world's longest non-stop flight

The battle to offer the world's longest non-stop flight steps up a gear on Thursday, when a new Singapore-to-New York service takes off.

 

Singapore Airlines is relaunching the service five years after they withdrew it because it had become too expensive.

 

It will cover more than 15,000km and is scheduled to take just under 19 hours.

 

Qantas launched a 17-hour non-stop service from Perth to London earlier this year, while Qatar runs a 17.5-hour service between Auckland and Doha.

 

Have passengers been snapping up the tickets?

The flight from Changi Airport to Newark's international airport in New Jersey will be taking off amid much fanfare and with barely a seat to spare.

 

Singapore Airlines (SIA) said there was demand for customers for non-stop services which help cut travelling times compared with flights which have a stopover.

 

The airline told the BBC that business class seats for the flight were fully booked.

 

However, there were "a very limited number" of premium economy seats left.

 

The airline is not planning to offer any economy bookings on the route.

 

A business class ticket will entitle passengers to two meals, and the choice of when they are served, plus refreshments in between. They will also have a bed to sleep in.

 

Premium economy fares will get three meals at fixed times, with refreshments in between.

 

Do people want to fly for 19 hours?

 

 

The brand new Airbus plane that SIA is using has been configured to seat 161 passengers in all - 67 business passengers and 94 premium economy passengers.

 

It's the world's longest non-stop flight... for now

Jet makes history on flight from Australia

"The thinking behind that is that they are selling a premium product - it's for the top end of town," says aviation expert Geoffrey Thomas, who will be on board Thursday's flight.

 

"This is a route between two massive financial hubs, and so they will fill this plane up with business people, or well-heeled travellers who want the convenience of a non stop flight.

 

"It's also been proven that when carriers introduce a new non-stop route, the traffic on that route increases threefold."

 

Mr Thomas, the editor-in-chief of airline rating site Airlineratings.com, has been on several such inaugural flights, including Qantas' new long-haul from Perth to London, inaugurated earlier this year, and he says he is looking forward to being a part of history.

 

"The Qantas flight to London was a huge event. We were basically on our feet for the entire flight, it was incredibly exciting. There's almost a party atmosphere on board."

 

Which route will the flight take?

Of two possible routes that SIA could take on Thursday to Newark, SIA has already told its passengers which one it will take - the NOPAC route, or the North Pacific route.

 

Mr Thomas says it will cover a distance of some 15,341km, but reminds non-aviation experts that while the distance between destinations remains constant, the distance flown and flight times can vary because of tailwinds, headwinds and any need for weather-related diversions.

 

Do 'longest flight' records matter?

How UK-Australia travel evolved to one flight

Can long-haul air travel also be low cost?

"When you've got some good strong jet streams going in an easterly direction, which is the way we'll go, then we will fly over Japan, then over the North Pacific, possibly touching into Alaska, then down through Canada into Newark."

 

At the moment, SIA is estimating the flight will take around 18 hours and 25 minutes.

 

Is this the future of long-haul travel?

The A350-900 ULR (ultra-long-range) that will fly on Thursday from Singapore to Newark belongs to Airbus' family of long-range, twin-engine aircraft.

 

The planes have been designed to replace Boeing's older 777 series and use between 20% and 30% less fuel than the 777s did - which is a good thing amid rising oil prices.

 

Singapore Airlines launched the same non-stop route between Changi and Newark in 2004, but by 2013 the carrier was forced to cancel it. The A340-500 it was using at the time used a lot of fuel and eventually the route became too expensive to run.

 

Several carriers already use the newer A350-900s on their long-haul routes. They have higher ceilings, larger windows and lighting designed to reduce jetlag - all good things for busy business travellers.

 

But the ultra-long-range version that SIA has bought from Airbus has the longest capability of any aircraft flying today, thanks in part to a slightly modified fuel system.

 

It can fly for 20 hours non-stop, which most aviation experts will tell you is the future of very long-haul travel for business and pleasure.

 

Mr Thomas says it's been proven over and over again that people want to fly non-stop, "so these sorts of aeroplanes are set to gain terrific momentum".

 

"Qantas' flight from Perth to London is seeing a load factor in economy of 92% - and in premium it's 94%. So from an airline perspective, these routes are money-making.

 

"We really are entering a new era of travel."--BBC

 

 

Chinese man charged with US aviation 'espionage'

The US justice department has announced charges of economic espionage against a suspected Chinese intelligence officer.

 

Officials say Yanjun Xu tried to steal trade secrets from US aviation and aerospace companies on behalf of China.

 

He was arrested in Belgium earlier this year and on Tuesday extradited to the US.

 

A senior justice department official said the case was "part of an overall economic policy of developing China at American expense".

 

"We cannot tolerate a nation's stealing our firepower and the fruits of our brainpower," Assistant Attorney General for National Security John Demers added.

 

Will Trump's tariffs stop Chinese espionage?

Trump administration seeks to block China Mobile

Beijing offers hefty cash reward for spy tip-offs

Prosecutors say Mr Xu is a senior officer with China's ministry of state security - which is responsible for counter-intelligence, foreign intelligence and political security.

 

He was detained in Belgium on 1 April at the request of the US. He was later indicted by an Ohio grand jury on four charges of conspiring to commit economic espionage and attempting to steal trade secrets.

 

The indictment was unsealed on Wednesday following the suspect's extradition.

 

Prosecutors allege that from 2013 Mr Xu targeted leading aviation companies as well as industry experts to obtain "highly sensitive" technical information.

 

They say he invited employees to travel to China for an "exchange of ideas" or under the guise of delivering university presentations.

 

Ohio-based aircraft engine giant GE Aviation was identified as one of the targets of the alleged operation.

 

Conspiracy and attempt to commit economic espionage carries a maximum US prison sentence of 15 years, and conspiracy to commit theft of trade secrets can carry a 10-year term.

 

The charges come at a time of raised tension between the US and China.

 

The two countries have become embroiled in an escalating trade war and President Trump has accused Beijing of trying to meddle in the upcoming mid-term elections.

 

In a speech last week, US Vice-President Mike Pence accused Beijing of directing "its bureaucrats and businesses to obtain American intellectual property - the foundation of our economic leadership - by any means necessary".--BBC

 

 

EU pushes for new tax on tech giants 'by Christmas'

A new tax on technology giants such as Facebook, Amazon and Google could raise £4.4bn a year across Europe, an EU commissioner has said.

 

Pierre Moscovici, head of tax for the European Commission, said a deal was "doable by Christmas".

 

Good progress was being made, he said, in unblocking an issue that has caused controversy around the world.

 

But he warned that if there was no deal by then, it could be the end of next year before it could be reconsidered.

 

The year 2019 would be dominated by Brexit, the European Parliament elections in May and the appointment of a new set of Commissioners, and it was "hardly imaginable" a technology tax would be agreed, he said.

 

"We can lead by example," the man leading the battle to increase taxes on internet giants argued.

 

"Let's do it now."

 

Facebook row

Mr Moscovici's move comes days after Facebook faced fresh criticism when it announced it was paying £15.8m tax in the UK, where its sales total £1.3bn.

 

After a hefty tax credit, Facebook's final bill will be £7.4m.

 

The push by the EU will also increase pressure on Philip Hammond, the chancellor, who has laid out his own proposals for a new technology tax.

 

Mr Moscovici needs agreement from all EU members, including Britain at this stage.

 

He said that two of the leading countries in the EU, Germany and France, had "made it clear" they wanted a deal by the end of the year.

 

It is clear there are still significant hurdles to overcome.

 

Two days ago, Ireland, the Czech Republic, Sweden and Finland all raised significant concerns that an EU tax could breach international rules on equal treatment for companies across the world.

 

Earlier this year, the European Commission published proposals for a 3% tax on the revenues of large internet companies with global revenues above €750m (£660m) a year.

 

Digital presence

At present, firms like Google, Amazon and Facebook avoid taxes on profits paid by more traditional companies because they do not have a large physical presence in many countries.

 

Profits are largely declared where the companies have their headquarters - usually America.

 

The highest level of tax is then paid there.

 

"Those companies, those internet giants, they pay little or no tax in the EU," Mr Moscovici told me at the International Monetary Fund annual meeting in Bali.

 

"Why? Because our corporate tax system is old.

 

"Is is not their fault. It is our fault. We have a tax system based on physical presence.

 

"We need to reflect on digital presence.

 

"If you compare all businesses, 23% is the average corporate tax rate. For the internet, it is something like 9%. This is a problem of a level playing field."

 

Mr Moscovici said he was willing to support a "sunset clause" to achieve agreement.

 

That would mean that any EU tech tax would be temporary until international bodies such as the Organisation for Economic Co-operation and Development (OECD) agreed a similar type of system applicable to all countries.

 

Such a move could ease concerns from member states that a new tax could damage the wider economy and make investing in the EU less attractive.

 

Although with America unlikely to agree any system which appears to penalise US success stories over other companies, international agreement still appears a long way off.

 

"The impact is quite limited - bringing in about €5bn a year," Mr Moscovici said of the EU plan.

 

"Frankly, if you compare that with the profits of those companies, they are not going to be ruined. I think we can find common ground [in the EU]."

 

Mr Moscovici said that the UK was supportive of the EU's moves as long as they did not appear protectionist.

 

Brexit and tax

He said he did not want to "improvise" on what would happen once Britain's planned departure from the EU takes place next March.

 

But he did point out that Britain had pushed for international agreement to tax large digital companies at a higher level.

 

On Brexit, Mr Moscovici said that the only scenario that Brussels was working on was "to try and get a good deal on time".

 

"Clearly we need to look for a solution that is close, co-operative and friendly," he said.

 

He also said that trade tensions with the US had eased and that both sides were now "talking" after the political rows that erupted earlier in the year, when President Donald Trump attacked the EU's trade policies.

 

"I think he's wrong economically, I think he's wrong politically," Mr Moscovici said of President Trump's argument that present free-trade deals around the world were bad for America,.

 

"I think we need to seek co-operation at the world level."--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/20181011/b81260c0/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/20181011/b81260c0/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/20181011/b81260c0/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/20181011/b81260c0/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29388 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181011/b81260c0/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29424 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181011/b81260c0/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/20181011/b81260c0/attachment-0011.jpg>