Major International Business Headlines Brief::: 22 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::: 22 October 2018

 


 

 


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

 


 

 


 

 

*  Zimbabwe aims to clear World Bank, AfDB arrears in 12 months - minister

*  Court to hear MTN's case against Nigeria's central bank in $8.1 bln transfer row

*  Tunisia to sell Eurobonds worth $1 bln early next week - government source

*  South Africa's rand firms; Clover shines in flat stock market

*  Sub-Saharan Africa's big economies yet to recover

*  MTN Ghana revenue rises, driven by mobile money service

*  South African dairy firm Clover says in takeover talks, shares soar

*  African bank Oragroup to launch largest ever IPO on Abidjan bourse

*  Acacia Mining threatens to invoke investment treaty in Tanzania dispute

*  Shanghai Composite: Stocks surge on hopes of market support

*  Philip Morris accused of hypocrisy over anti-smoking ad

*  Strikes send Ryanair profits sliding

*  UK firms 'near point of no return'

*  The billionaires fuelling a space race

*  Plastic recycling firms accused of abusing market

*  No-deal Brexit could hit food supplies, says Stena Line

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

Zimbabwe aims to clear World Bank, AfDB arrears in 12 months - minister

HARARE (Reuters) - Zimbabwe aims to clear its $2 billion arrears with the World Bank and African Development Bank in the next 12 months, after securing the support of international creditors and donor countries, Finance Minister Mthuli Ncube said on Friday.

 

Zimbabwe has struggled to access international credit since defaulting on its debts to global lenders two decades ago and running up arrears of nearly $6 billion.

 

Ncube said in an interview the arrears clearance programme had the backing of the United States government, which maintains sanctions against Zimbabwe.

 

Ncube met international lenders as well as representatives of the U.S. and British governments in Bali, Indonesia, last week on the sidelines of the annual Internal Monetary Fund and World Bank meetings.

 

“My intention is that by this time next year we would have paid off the AfDB and World Bank. All options are on the table, including the Highly Indebted Poor Country (HIPC) option debt write-off, or the HIPC-lite or the ad-hoc solutions, with sponsors,” Ncube told Reuters.

 

“For sponsors, we will be talking to the G7 members to see if one or two of them, or all of them, could sponsor us and give us some lines of credit, bridging finance to be able to clear those arrears.”

 

The IMF and World Bank launched the HIPC initiative in 1996 to help poor countries struggling with external debt get debt relief.

 

Acknowledging the U.S. role in his debt relief plan, Ncube said Zimbabwe needed to embrace Washington’s conditions as spelt out in its Zimbabwe Democracy and Economic Recovery Act (Zidera).

 

That sanctions law was enacted in 2001 in response to alleged human rights abuses by the Zimbabwe government under former President Robert Mugabe.

 

Amended this year, it sets tough conditions for Zimbabwe including electoral reforms, accountability for past atrocities, compensation for dispossessed white farmers and greater transparency in diamond revenues.

 

“The Americans are very supportive of Zimbabwe. Of course, there are points of departure, Zidera is the issue. But my view has always been that with the principles of what is in Zidera, we should embrace it as Zimbabweans,” Ncube said.

 

“There is no harm in pursuing the suggestions in Zidera. Of course, in the interim, it has financial implications because of the financial sanctions in a way, so that is hurting.”

 

Ncube said Zimbabwe would, from early next year, embark on a programme allowing the IMF to monitor its economic reforms, but which does not entail funding from the global lender.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Court to hear MTN's case against Nigeria's central bank in $8.1 bln transfer row

LAGOS (Reuters) - A hearing in the court case between MTN and Nigeria’s central bank in a dispute over the alleged transfer of $8.1 billion of funds by the telecoms firm, has been set for Oct. 30, a lawyer for MTN said on Friday.

 

MTN has denied claims that it depleted Nigeria’s forex reserves, the South African telecoms group’s lawyer, Wole Olanipekun, told Reuters on Friday, after the central bank accused the company of moving $8.1 billion abroad in an ongoing row with the bank, which is battling to shore up its currency.

 

Nigeria is MTN’s biggest market and accounts for a third of its annual core profit.

 

The central bank has said in its counterclaim to the court that MTN contributed to depleting Nigeria’s reserves through the purchase of dollars via unapproved certificates. MTN has denied any wrongdoing.

 

Nigeria faced a severe shortage of dollars in 2016 caused by low oil prices, leading to a sharp devaluation of the naira. The currency crisis triggered a recession, which the country emerged from last year.

 

MTN said in a court filing on Thursday that it paid the naira-equivalent to purchase a total of $8.1 billion from the central bank in several tranches over a nine-year period and that it did not negatively impair reserves.

 

Nigeria has burnt reserves to keep the naira stable. Central bank data on Thursday showed that the bank spent $2.2 billion in the month to Oct. 16, to defend the naira, while reserves fell to an eight-month low of $42.8 billion.

 

Central bank officials met with MTN and its lenders this week to discuss the dispute. The bank has said it was looking for a resolution.

 

Nigeria’s information minister told Reuters on Wednesday that the central bank and MTN could soon agree a deal.

 

A separate hearing between MTN and the attorney general over an alleged $2 billion unpaid tax bill has been scheduled for Nov. 8 at the same court in Lagos, the lawyer told Reuters.

 

 

 

Tunisia to sell Eurobonds worth $1 bln early next week - government source

TUNIS (Reuters) - Tunisia will sell Eurobonds worth $1 bln early next week, a government source said on Saturday.

 

The North African country had planned the bond sale since the first quarter to help to plug a budget deficit but the issue had been delayed several times.

 

Deutsche Bank, JPMorgan Chase & Co, Citigroup and Natixis have been appointed to handle the sale, the source said.

 

Last month, the International Monetary Fund approved the payment of a $245 million loan tranche to Tunisia, the fifth under its loan programme with the North African country, paving the way for the bond issue.

 

The loan programme is tied to Tunis pursuing economic reforms aimed at keeping its deficit under control.

 

Tunisia has been praised as the only democratic success among the nations where the “Arab Spring” revolts took place in 2011. But successive governments have failed to trim its fiscal deficit and create economic growth.

 

 

South Africa's rand firms; Clover shines in flat stock market

JOHANNESBURG (Reuters) - South Africa’s rand firmed on Friday, tracking a broad rally in emerging markets, as investors awaited the new finance minister’s medium-term budget speech and consumer price inflation numbers due next week.

 

Stocks ended the week flat, but shares in Clover Industries raced to their highest in almost two months after the dairy company said it is in talks over a total sale to an unnamed company. Clover closed more than 18 percent up at 16.70 rand.

 

The rand was up 0.35 percent at 14.4050 per dollar at 1506 GMT.

 

Emerging markets were buoyed on Friday by a surge in Chinese stocks after regulators mounted a coordinated campaign to try to put a floor under the tumbling market while a stronger Turkish lira also lifted sentiment. [nL3N1WZ3OQ]

 

The focus now turns to Wednesday’s budget speech by new finance minister Tito Mboweni and the September CPI data.

 

Africa’s most industrialised economy unexpectedly entered recession in the second quarter, but Mboweni is expected to stick closely to previous budget balance forecasts for the coming two financial years, economists predicted in a Reuters poll this week.[nL8N1WW2TV]

 

“Maintaining the current framework will be crucial if South Africa is to avoid a downgrade from Moody’s, which delayed its recent review in order to consider the speech,” said Capital Economics economist John Ashbourne.

 

Moody’s is the only one of the “big three” ratings agencies to rate South African debt at investment grade after last year’s downgrades to “junk” status by S&P Global Ratings and Fitch.

 

In fixed income, the yield on the benchmark government bond due in 2026 rose 4.5 basis points to 9.21 percent.

 

On the stock market, the blue-chip Top-40 index and the all-share index were little changed. The Top-40 eased by 0.09 percent to 45,895 points while the all-share dipped by 0.08 percent to 52,093 points.

 

“In the short term, we have possibly hit a bottom or are about to, so from a technical point of view we should see a bit of a bounce in the market,” said BP Bernstein equities trader Vasili Girasis.

 

 

 

Sub-Saharan Africa's big economies yet to recover

JOHANNESBURG (Reuters) - Sub-Saharan Africa’s economic recovery will progress slowly into next year, as the continent’s biggest drivers struggle to move into higher gear despite a healthier global economy, a Reuters poll found on Friday.

 

Commodity prices have improved and the global economy is in good shape, but Nigeria and South Africa, the two economies that normally push the continent into faster growth, are struggling to reclaim their potential.

 

In a poll taken this week, median forecasts from economists and analysts showed Nigeria - Africa’s biggest economy - will grow 2.7 percent next year, 0.3 percentage points slower than forecast in July.

 

The west African economy recovered from its worst downturn in a quarter of a century last year but growth is still fragile. It dipped to 1.50 percent year on year between April and June.

 

Kenya, east Africa’s largest economy, is expected to grow 5.8 percent this year and next, though analysts said official reluctance to repeal a cap on commercial bank interest rates is hurting private-sector lending.

 

A separate survey two days ago showed South Africa - the continent’s second-biggest economy, which together with Nigeria makes up over half of sub-Saharan growth - is forecast to grow just 1.4 percent.

 

“We think that growth in both countries will remain disappointing next year,” said John Ashbourne, senior emerging markets economist at Capital Economics.

 

South Africa has not been able to extend its easing cycle during the emerging-market currency mayhem this year. Its Reserve Bank is expected to raise interest rates early next year.

 

While Nigerian rates have remained elevated at 14 percent for the past two years, its central bank has managed to squeeze the gap between its multiple currency exchange rates.

 

“The external environment will be tougher next year. We expect that commodity prices, which rose this year, will stabilise or – in some cases fall – in 2019,” said Ashbourne.

 

Nigeria derives about 80 percent of its revenues from oil while South Africa, a net importer, is still recovering from a recession in the first half of this year.

 

A Reuters survey of 50 analysts forecast Brent crude would average $73.48 a barrel in 2018. Brent currently trades around $80.00 a barrel.

 

The Nigerian government is trying to diversify its revenue away from global oil prices to greater tax collection

 

South Africa’s president has put in place reform plans, including re-prioritising 50 billion rand ($3.5 billion) of public spending to boost economic growth and create jobs.

 

But earlier this month, the Atlanta Fed President said the U.S. Federal Reserve should continue to raise rates until it gets to a neutral policy stance, a prospect that hurts emerging markets.

 

The economic research head at Ecobank, Gaimin Nonyane, said tightening in financial conditions will weigh on countries’ external debt servicing and will therefore create debt distress in emerging markets.

 

Several countries in the continent, like Zambia, which is expected to grow 3.8 percent this year and 3.9 percent next, are already in debt distress.

 

Still, the International Monetary Fund expects growth for sub-Saharan Africa to increase to 3.8 percent next year from 3.1 percent this year. The IMF’s estimates have averaged 5.1 percent between 2010 and 2015 for the region.

 

($1 = 14.2178 rand)

 

 

MTN Ghana revenue rises, driven by mobile money service

JOHANNESBURG (Reuters) - MTN Group said on Friday its Ghana unit’s third quarter revenue grew around 23 percent boosted by its mobile money service MoMo.

 

MTN Ghana said revenue for the nine months ended 30 September 2018 rose to 3.54 billion Ghanaian cedi ($731.90 million) from 2.49 billion Ghanaian cedi during the same period a year ago.

 

During the quarter, MTN Ghana’s service revenue grew 22.9 percent, its data revenue increased by 30.9 percent and digital revenue rose by 28 percent, driven by MoMo which allows money transfer and payments using a mobile phone, the firm said.

 

($1 = 4.8367 Ghanian cedi)

 

 

 

South African dairy firm Clover says in takeover talks, shares soar

JOHANNESBURG (Reuters) - Shares in South Africa’s Clover Industries raced to their highest in almost two months on Friday after the dairy company said it is in talks with an unnamed firm that intends to acquire all its shares.

 

Clover, which processes products including yoghurt, beverages, cheese and olive oil, has focused on developing higher margin, value-added branded food and beverages as part of its strategy to move away from lower-margin commoditised dairy products.

 

The company, which has a market capitalization of 2.73 billion rand ($190 million), did not provide further details on the potential takeover, which comes as it recovers from a drought and depressed milk prices.

 

Clover’s shares jumped as much as 15 percent to 16.40 rand, their highest since Sept. 4, outperforming the All-share on Friday which was down 0.36 percent at 1106 GMT.

 

“It could be one of the private equity funds or one of the big food producers, it is unlikely to be Tiger Brands as they have had more than their fair share of problems,” said Ron Klipin, portfolio manager at Cratos Wealth.

 

Tiger Brands, which produces grocery brands ranging from peanut butter to cleaning products, shed more than a third of its market value, some 28.4 billion rand ($1.96 billion), since it was implicated in the world’s largest outbreak of listeria on March 4 which killed more than 200 people.

 

Clover said it had lost 6.5 million rand a month in fees earned on services such as production, sales and merchandising and distribution for a competitor, after processed meats were recalled by health authorities during the listeria outbreak.

 

Klipin said other potential buyers could be Zeder Investments, which holds a 27 percent stake in Pioneer Food.

 

Clover spun off its raw milk business last year to form the Dairy Farmers of South Africa (DFSA), in which Clover holds a 26 percent voting right.

 

“They have done the right thing over the last couple of years, reinventing the company,” said Klipin.

 

In September, Clover reported a tripling in normalised annual profit, boosted by its exit from the milk business and a recovery from drought the previous year.

 

“From an earnings point of view, they are going in the right direction. The last set of results was very positive. Whoever is buying it has definitely come in at the right time,” said Greg Davies, equities trader at Cratos Capital.

 

($1 = 14.3840 rand)

 

 

African bank Oragroup to launch largest ever IPO on Abidjan bourse

ABIDJAN (Reuters) - Panafrican banking group Oragroup plans to raise 56.92 billion CFA francs ($101 million) via the largest ever initial public offering (IPO) on the Abidjan Stock Exchange (BRVM), the company said on Friday.

 

The group, which operates in 12 countries in West and Central Africa, will list 20 percent of its equity by listing 6 million new and 7.8 million existing shares at a price of 4,100 CFA francs per share.

 

The capital increase will be used to fund growth, including by investing in digital, Chief Executive Binta Touré Ndoye said in an emailed statement.

 

The underwriting will take place from Oct. 29 to Nov. 16, while the final listing is scheduled for February 2019.

 

With a market capitalisation of 56.9 billion CFA francs, Oragroup will remain behind Sonatel, which has the biggest capitalisation on BRVM at 1.95 trillion CFA francs.

 

Pan-African investor Emerging Capital Partners will remain Oragroup’s majority shareholder with over 50 percent of shares. 

 

($1 = 563.4500 CFA francs)

 

 

Acacia Mining threatens to invoke investment treaty in Tanzania dispute

LONDON (Reuters) - Acacia Mining said on Friday it would seek direct dialogue with Tanzania over a long-running tax dispute and threatened to invoke a bilateral investment treaty should a settlement not be reached.

 

Acacia’s parent Barrick Gold has been negotiating with the Tanzanian government on behalf of London-listed Acacia for 19 months but no final settlement has been reached.

 

“We will ... be reaching out to the Government to seek the opportunity for direct dialogue regarding the ongoing disputes between the Government, the Company and the broader Acacia Group,” the company said in a statement.

 

It added that if it failed to negotiate a resolution, it could pursue a claim under a bilateral investment treaty between Tanzania and the United Kingdom.

 

Tanzanian authorities have charged three of Acacia’s local subsidiaries, an employee and a former staffer with money laundering and tax evasion, the gold miner said on Wednesday.

 

“Each of the recent charges relate to matters which are subject to or have been introduced into the existing contractual arbitrations with the (government),” Acacia said in a statement.

 

“The Company is currently considering its legal position and is concerned about the increasing risks to the safety and security of its people.”

 

Acacia said on Wednesday that all the accused had pleaded not guilty.

 

Also on Thursday, the company said earnings before interest, tax, depreciation and amortisation (EBITDA) in the three months to September fell 11 percent from the previous quarter to $44.6 million due to a softer gold price and lower output.

 

 

Shanghai Composite: Stocks surge on hopes of market support

One of China's leading stock indexes has had its highest daily spike in more than three years following signs that the government will step in to support battered equity markets.

 

The Shanghai Composite jumped 4.4%, putting it on track for its biggest one-day rise since September 2015.

 

The moves extend a rally that began on Friday and after investor confidence surged on assurances from Beijing.

 

Stocks had been falling as China's economic growth continued to stutter.

 

On Friday, top Chinese financial officials - including economic advisor Liu He and the heads of the securities and insurance commissions - issued a statement to buoy investor sentiment in bruised markets.

 

"The barrage of headlines from key Chinese officials on Friday was deafening and extremely co-ordinated, which has been to great effect," Pepperstone analyst Chris Weston said in a research note.

 

Over the weekend, the government published a draft of new rules for personal tax deductions, according to Reuters.

 

The moves come as the world's second largest economy faces challenges such as high debt levels and an intensifying trade war with the US.

 

Data out Friday showed the Chinese economy grew at the slowest quarterly rate since the global financial crisis.

 

More pain to come in US-China trade war

The result was also a drop from the 6.7% rate in the prior quarter, but remains in line with the government's full-year target of about 6.5%.

 

For years China has pushed to wean itself off exports and rely more on domestic consumption for growth.

 

At the same time, the government has been fighting to contain ballooning debt driven by a wave of infrastructure development and a housing bubble without hurting growth.

 

In recent months Beijing has taken steps to support its economy, including cutting capital requirements to boost liquidity and ease the slowdown.--BBC

 

 

 

Philip Morris accused of hypocrisy over anti-smoking ad

One of the world's biggest tobacco firms, Philip Morris, has been accused of "staggering hypocrisy" over its new ad campaign that urges smokers to quit.

 

The Marlboro maker said the move was "an important next step" in its aim to "ultimately stop selling cigarettes".

 

But Cancer Research said the firm was simply trying to promote its smoking alternatives, such as heated tobacco.

 

"This is a staggering hypocrisy," it said, pointing out the firm still promotes smoking outside the UK.

 

"The best way Philip Morris could help people to stop smoking is to stop making cigarettes," George Butterworth, Cancer Research UK's tobacco policy manager said.

 

The charity said smoking was the leading preventable cause of cancer and it encouraged people to switch away completely from smoking, including through the use of e-cigarettes.

 

Tobacco giant launches anti-smoking ad

Is the vape shop boom about to end?

Vapers rise 'to more than three million'

Health charity Action on Smoking and Health (Ash) also criticised the campaign - which is called Hold My Light and has been launched in a four-page wraparound on Monday's Daily Mirror - saying it was a way for Philip Morris to get around the UK's anti-tobacco advertising rules.

 

There is also a campaign video, which shows a young woman negotiating a Mission Impossible-style room in order to hand her cigarette lighter over to a group of friends, who are supporting her in a bid to give up smoking.

 

Most forms of tobacco advertising and promotion in the UK are banned, and rules introduced last year mean cigarettes and tobacco must be sold in plain green packets.

 

Deborah Arnott, chief executive of Ash, said Philip Morris was still advertising its Marlboro brand wherever globally it was legal to do so.

 

"The fact of the matter is that it can no longer do that in the UK, we're a dark market where all advertising, promotion and sponsorship is banned, and cigarettes are in plain packs.

 

"So instead Philip Morris is promoting the company name which is inextricably linked with Marlboro," she said.

 

Philip Morris has said previously that it wants to achieve a "smoke-free" future.

 

Like many tobacco firms, Philip Morris is moving towards a focus on new products to replace cigarettes as the number of smokers in the UK continues to decline.

 

In the UK, it markets several alternatives to cigarettes, including a heated tobacco product, Iqos.

 

It also owns the Nicocig, Vivid and Mesh e-cigarette brands.

 

'It takes time'

The firm's managing director Peter Nixon said its new advertising campaign was "about supporting smokers in finding alternatives".

 

Asked why, if Philip Morris was so keen for smokers to quit, it did not simply stop making cigarettes and focus entirely on alternative products, he said it was because smokers would just switch to a rival product.

 

"Cigarettes still generate 87% of our business. We want to get to [smoke-free] as soon as possible, and we want to be selling alternatives, but it does take time," he said.

 

Mr Nixon said the firm had invested over £4bn in developing alternative products to cigarettes.

 

The campaign suggests four ways to give up cigarettes, including going cold turkey, using nicotine patches, vaping and using heated tobacco products.

 

In an unusual move, the Daily Mirror made a reference in its editorial column to the advertising feature which envelops the paper. It said it was "pleased to back the campaign".

 

It added: "Yes, we were surprised too that this is a campaign created by Philip Morris Ltd. But it can only be a good thing that they are now trying to encourage people to quit cigarettes."

 

In July last year, the government set out a plan to make England, in effect, smoke-free in the next few decades.

 

The new Tobacco Control Plan aimed to cut smoking rates from 15.5% to 12% of the population by 2022.--BBC

 

 

Strikes send Ryanair profits sliding

Ryanair has blamed strikes by pilots and cabin crew for a slide in half-year profits over the summer, but maintained its forecasts for the full year.

 

The airline reported a 7% fall in profits to €1.2bn (£1.06bn) for the six months to 30 September.

 

Chief executive Michael O'Leary also pointed the finger at "the worst summer of ATC [air traffic control] disruptions on record".

 

However, traffic rose 6% and its planes were 96% full.

 

Average fares slipped 3% to €46, but ancillary revenues - such as luggage and seat reservation fees - jumped 27% to €1.3bn.

 

Earlier this month, Ryanair warned that profits for the full year would be 12% lower than previously forecast at between €1.1bn and €1.2bn.

 

It posted a record €1.45bn profit after tax for the year to 31 March.

 

"This full-year guidance remains heavily dependent on air fares not declining further - they remain soft this winter due to excess capacity in Europe - [and] the impact of significantly higher oil prices on our unhedged exposures," Mr O'Leary added.

 

He said the airline's cost advantage over rivals was widening and that "consolidation will create growth opportunities for Ryanair's lowest fare/lowest cost model".

 

The airline came under fire over the weekend for apparently failing to remove a passenger from a flight after he racially abused a woman in her 70s.--BBC

 

 

UK firms 'near point of no return'

Businesses are becoming exasperated at the lack of progress in Brexit talks and are pausing or cancelling investment in the UK.

 

A week that many had hoped would bring progress in the talks has now come and gone without a breakthrough.

 

Employers group the CBI says 80% of surveyed members feel Brexit uncertainty has already had a negative impact on investment decisions.

 

On Friday, Theresa May held a conference call with 150 top bosses.

 

She wanted to reassure them that she was still confident of striking a deal and that she recognised their concerns.

 

Brexit recession warning from RBS boss

Lord Mervyn King attacks 'incompetent' Brexit approach

Cliff-edge Brexit fears back in boardrooms

The chief executive of one company on the call told the BBC the PM had "done a good job and had a reassuring tone" while another said there had been "nothing new in her message".

 

Of the members surveyed by the CBI, 39% said they would trigger additional contingency plans if there was no further clarity by November, while a further 19% said it was already too late.

 

Nicole Sykes, the CBI's head of EU negotiations, says the situation is urgent, pointing to concrete examples of cancelled projects: "We heard from a fashion house that wanted to set up a new factory in the UK. £50m of investment, cancelled.

 

"But we're also talking about some small things. We heard from a Northern Ireland farmer who wanted to build a new machine to make their operations more efficient, grow competitive. Again, that's been cancelled. So we really are talking about real economic consequences."

 

Despite the PM's attempts to calm nerves, many businesses are in the process of stepping up their preparations for leaving the EU without a deal at the end of March next year.

 

Transportation worries

Supermarket executives told the BBC they were weighing up the viability of flying in fresh food from outside the EU to avoid potential log jams at the ports like Dover.

 

Different companies reached different conclusions.

 

One said: "We haven't started chartering aircraft yet but we are looking at it. We are very worried about Dover so we are also looking at alternative ports like Felixstowe as an alternative."

 

Another major supermarket executive said that air freight isn't the answer: "There simply isn't the capacity at a moment when every other industry will be trying to do the same thing."

 

However, they felt that the problem is potentially so severe that they do not believe it will come to that.

 

"There is no way the UK or EU would allow the UK to run out of food, but we are looking at alternative ways to transport fresh food, as stockpiling is not an option."

 

The car industry is also very sensitive to supply chain hold-ups.

 

Industry body the SMMT described the lack of progress in talks as hugely disappointing and said it had "grave concerns".

 

Car makers are looking at alternative ports, increased warehousing and moving the supply of some parts outside the UK.

 

BMW has already brought forward an annual shutdown of Mini production to coincide with the UK's departure from the EU, while Jaguar Land Rover has warned of the potential loss of tens of thousands of UK jobs.

 

It's not just business which is pessimistic about a deal being struck in time.

 

International Trade Secretary Liam Fox this week reiterated his prediction that a no deal scenario was more likely than not.

 

"I've said that the chance of a no deal is 60% and I'm not changing that view," he said.

 

He also told a gathering of business leaders this week that great opportunities in international trade await the UK outside the EU.

 

Most of the audience that night will hope he got the first bit wrong.--BBC

 

 

The billionaires fuelling a space race

Dubbed "NewSpace", an increasing number of entrepreneurs are joining in the race to create cheap, commercialised space travel.

 

Among these are billionaires Elon Musk, Jeff Bezos and Sir Richard Branson, who all made their fortunes in other industries.

 

Between them, they're posing a major challenge to established space industry giants.

 

Fuelled by intense rivalries, their ambitions include the development of space tourism and developing permanent human settlement on the Moon and even Mars.

 

But emerging space entrepreneurs are also filling a huge void left by governments that have had to cut funding for space missions.

 

As a result, names like SpaceX and Blue Origin are becoming part of the increasingly lucrative military space race as the US seeks to counter ambitions by China and Russia. By some estimates, the space industry is expected to be worth $1 trillion (£766bn) by 2040.

 

So what are the companies hoping to make money by radically transforming our future, and who are the men behind them?

 

Amazon founder Jeff Bezos, the world's richest man, was one of the first billionaires to jump into the commercial "space race", starting Blue Origin in 2000.

 

Compared with industry rivals it has a reputation for being far more guarded about its activities.

 

The company has suffered setbacks after several failed launches and problems with its BE-4 engine, and since 2016 Bezos has sold $1bn of his Amazon stock every year to keep the company flying.

 

Like rival SpaceX, its goal is to drive down the cost of space travel by building reusable rockets. In the past, rockets have been discarded after just one launch.

 

Three years ago it became the first company to land a rocket successfully. The same rocket, New Shepherd, has landed now on five different occasions, but rival Elon Musk took a dig at Bezos on social media, pointing out that these flights had only been sub-orbital.

 

Gaining momentum, Blue Origin is now securing lucrative government contracts and recently gained national security certifications from the US government.

 

Earlier this year, together with Northrop Grumman and United Launch Alliance, it was chosen by the US Air Force to develop new rockets which can be used for military launches. Each company will be getting $109m from the deal.

 

Bezos is set on sending "space tourists" into sub-orbital flight. Blue Origin says it will be selling tickets from next year, with company insiders suggesting they could go for up to $300,000 a pop.

 

In the future, Bezos has ambitions to form a partnership with Nasa to test the possibility of permanent human settlement of the Moon.

 

South African-born businessman Elon Musk started SpaceX in 2002 with $100m of his early fortune from PayPal, which he co-founded.

 

The company has launched nearly 70 rockets to date, and has won contracts with Nasa, the US Air Force and Argentine's space agency to deliver satellites into orbit and to help resupply the International Space Station.

 

It has also ventured deeper into space than Blue Origin and Virgin Galactic, reaching 22,000 miles above the Earth's equator.

 

But there have been setbacks along the way for Musk, too. Several launches have results in rockets exploding and payloads being lost, including a spy satellite for the US military.

 

But Musk is known for publicity stunts to make light of failures and highlight successes. Last year, he shared a "blooper reel" of failed rocket launches and landings, featuring "some epic explosion footage". SpaceX also launched a Tesla car into space as part of its Falcon Heavy rocket project.

 

 

Like Blue Origin, Musk plans to one day send people into space on commercial flights. Earlier this year, he announced that SpaceX's first "moon tourist" would be Japanese billionaire Yusaku Maezawa.

 

But one of SpaceX's ultimate goals is to send manned flights to Mars and eventually colonise the Red Planet.

 

"I want to die on Mars," Musk has said, "just not on impact."

 

British tycoon Sir Richard Branson is one of the newest members of the NewSpace set, founding Virgin Galactic in 2004.

 

While rivals have ambitions for deep space travel, Sir Richard is focused on developing reusable "space planes" to take tourists and other payloads on brief trips to sub-orbital space.

 

Virgin Galactic has already started selling tickets for $250,000, and celebrities such as pop star Justin Bieber have already signed up. It's also attracted significant investment from, among others, the UAE's sovereign wealth fund.

 

The company made headlines in 2014 after a spaceship exploded during a test flight in California, killing one pilot and injuring another. This proved a significant setback to its initial goal of becoming the first company to send a tourist to space.

 

But the company has since completed several test flights and earlier this month, Sir Richard said the company will be in space "in weeks, not months".--BBC

 

 

 

Plastic recycling firms accused of abusing market

The plastics recycling industry faces an investigation amid reports firms are illegally profiting from the market and in some cases polluting rivers.

 

The Environment Agency, the regulator, confirmed it had set up an investigative team and was pursuing "several lines of enquiry".

 

It comes as councils cut back their plastics recycling services amid a fall in demand for exports to China.

 

Importers are said to be worried about high contamination levels in UK waste.

 

Britain sends about two-thirds of its plastic packaging waste abroad every year, including plastic bottles, yoghurt pots and other items.

 

'Leaking into rivers'

Exporters charge retailers and manufacturers a rate per tonne for plastic waste, and retailers are allowed to use these payments as proof they are meeting their recycling obligations. But MPs have criticised the system for being open to fraud.

 

As first reported by the Guardian, allegations the Environment Agency (EA) is understood to be investigating include:

 

Exporters are illegally claiming for tens of thousands of tonnes of plastic waste which might not exist

Plastic waste is not being recycled and is being left to leak into rivers and oceans

UK firms accused of shipping contaminated waste - when non-recyclable items are mixed in with recyclables items - are being allowed to continue exporting.

According to the Guardian, data passed to the EA shows a huge difference between the amount of packaging exports recorded by HM Customs, compared with the amount UK exporters claim to have shipped.

 

The newspaper, which analysed the data, said British exporters claimed to have exported 35,135 tonnes more plastic than HM Customs recorded.

 

'Fraudsters and criminals'

It also reported that six UK exporters of plastic waste have had their licences suspended or cancelled in the last three months. One had had 57 containers of plastic waste stopped at UK ports over the last three years due to concerns over contamination.

 

The UK plastic waste export industry is said to be worth £50m year.

 

An EA spokesman did not comment on specific claims, but said: "Waste crime damages lives, livelihoods and the environment.

 

"We have a specialist central investigative team and dedicated staff up and down the country who tackle it. We take seriously all allegations of fraud and... will bring fraudsters and criminals to justice."

 

Councils are cutting back their plastic recycling services.

A National Audit Office inquiry earlier this year warned that the current system was open to abuse and was not being monitored properly.

 

It said that the financial incentive for companies to fraudulently claim they had recycled plastic packaging was "higher than for any other material".

 

"There is therefore a risk that some of it is not recycled under equivalent standards to the UK and is instead sent to landfill or contributes to pollution," it said.

 

On top of that, this year, five export firms flagged as high risk are still operating and 33 considered to be of medium risk are also still accredited to export waste.

 

 

It comes after China and Vietnam have stopped importing foreign plastic waste amid concerns about high contamination levels.

 

This has had a knock-on effect on UK local authorities, many of which have cut their plastic recycling services amid a build-up of waste.

 

Basingstoke and Deane Borough Council has told residents to recycle only plastic bottles, leaving all other plastics in normal rubbish bins.

 

And Swindon Borough Council has told residents to put mixed plastic waste, such as yoghurt pots, into their regular bins so it can be incinerated and turned into fuel.

 

It said the main benefit of the temporary measure was "to prevent the risk of it ending up in overseas landfill or worse".--BBC

 

 

No-deal Brexit could hit food supplies, says Stena Line

A no-deal Brexit could affect food supplies and see traders bypass Great Britain, the ferry firm Stena Line has warned.

 

There is "very little readiness" at ports and "anxiety is high", said Ian Hampton senior executive at the global ferry operator.

 

Stena is the largest ferry operator in the Irish sea and owns three UK ports.

 

The government said it had proposed an ambitious future relationship with the EU to keep trade flowing.

 

Mr Hampton said there was a possibility Stena Line would reduce services to and from the UK as a result of Brexit.

 

"We can't plan on the basis of what we don't know, so we're very anxious about the outcome," he told BBC Radio 4's Today Programme.

 

He warned traders could stop using Great Britain to get from Ireland and Northern Ireland to the rest of the EU, and instead sail direct to the continent.

 

A no-deal Brexit that created friction on the Northern Ireland border, or delays if extra checks were put in place between Great Britain and Northern Ireland to implement what's become known as a Brexit backstop, could have a significant impact on trade flows, he said.

 

'Huge concerns'

Asked if added friction at borders could result in fewer Stena Line sailings to and from UK ports, he said that while the firm did not want to move routes "this could be one of the implications".

 

He called for clarity from the government about what trade declarations would be necessary in the event of a no-deal Brexit. Without it, he said, delays at ports could affect whether food got to supermarket shelves on time.

 

Mr Hampton, chief people and communications officer at Stena Line, was also worried about whether a new computer system to handle customs declarations - known as CDS - or its predecessor, could cope with a sharp increase in volumes following a no-deal Brexit.

 

"We're concerned about that," he said. "I'm not sure it can. This is a system that was not written for the purpose we're now asking of it and I think that would [create] huge concerns."

 

EU ready to extend transition period

Eurostar disruption risk in no-deal Brexit

Watch: How could Brexit affect trade with Ireland?

Stena operates three UK ports, Holyhead, Fishguard and Cairnryan, and carries more than seven million passengers and two million units of freight to and from the UK each year.

 

A government spokesman said it was engaging with ports, and senior officials had visited those owned by Stena Line.

 

"It is crucial to keep trade flowing when we leave the EU," the spokesman said.

 

"That is why we are proposing a pragmatic and ambitious future economic relationship with the EU, and we remain committed to reaching agreement on the Withdrawal Agreement and future framework this autumn."--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/20181022/8e17fa0b/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/20181022/8e17fa0b/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/20181022/8e17fa0b/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/20181022/8e17fa0b/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/20181022/8e17fa0b/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/20181022/8e17fa0b/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/20181022/8e17fa0b/attachment-0011.jpg>