Major International Business Headlines Brief::: 23 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::: 23 October 2018

 


 

 


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

 


 

 


 

 

*  South Africa's latest finance minister walks budget tightrope to fix ailing economy

*  Ivory Coast rubber output to reach 2 mln T in 2023 -ag minister

*  South African state firm Transnet removes CEO

*  Kenya warns against unlicensed online forex trading

*  South Africa's Verimark says majority shareholder intends to delist firm

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

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

*  Morocco inflation drops to 1.1 pct y/y in September

*  Kenyan ARM Cement's administrator seeks asset sale to cut debt, keep it afloat

*  Liam Fox says Trump 'very keen' on trade deal

*  Saudi summit begins despite calls for a boycott

*  World's longest sea crossing: Hong Kong-Zhuhai bridge opens

*  Nobel scientists make Brexit plea for free movement and funding

*  Northern Rock: US firm 'misled' UK government on mortgages

*  China vs the US: not just a trade war

*  Morrisons loses data leak challenge

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

South Africa's latest finance minister walks budget tightrope to fix ailing economy

JOHANNESBURG (Reuters) - South Africa’s new finance minister will target spending on agriculture, infrastructure and job creation projects in his inaugural budget speech on Wednesday in a bid to haul the economy out of a recession.

 

With the government facing a ballooning debt, stubbornly high unemployment, struggling state companies, and dwindling coffers, Tito Mboweni, a former central banker only two weeks in the top finance job, will have to walk a tightrope to breath new life into Africa’s most industrialised economy.

 

Mboweni’s budget speech comes as President Cyril Ramaphosa tries to woo investors after years of weak economic growth and analysts are also watching to see if the budget will include concessions to attract investors.

 

Agriculture will be a key focus for the government, BNP Paribas South Africa senior economist Jeff Schultz said.

 

“Agriculture economy in South Africa has shrunk quite significantly over the last decade or so and there is a big push to try and improve that side of the economy because it is employment enhancing,” Schultz said.

 

Appointed on Oct. 9 as the fourth finance minister in the last two years, Mboweni is seen as providing stability in an office that has seen a high turnover of ministers, causing upheavals in the rand and bond markets.

 

Mboweni’s Medium Term Budget Policy Statement (MTBPS) is expected to mirror previous budget balance forecasts for the coming two fiscal years, a Reuters poll showed.

 

Ramaphosa last month announced a stimulus plan that included 50 billion rand ($3.5 billion) of expenditure, a portion of which will be funds shifted from low performance departments, and new funding. The president also flagged a 400 billion rand infrastructure fund to be launched soon.

 

Analysts and rating agencies are keen to see where Mboweni will find the stimulus money from the 1.67 trillion rand allocated in the 2018 budget. He is also expected to provide revised fiscal deficits and growth forecasts.

 

“The expenditure ceiling will survive while there will be virtually no room to credibly pencil in any additional taxes,” Peter Attard Montalto, head of capital markets research at Intellidex, said in a note.

 

He said contingency reserves and unspent allocations, such as some provisions for drought would make up the stimulus cash.

 

DEBT RISING

Mboweni is also expected to present a credible plan to stabilise debt, in a bid to avoid further credit downgrades.

 

South Africa is rated “junk” by S&P Global Ratings and Fitch. Moody’s is the only of the “big three” agencies to rate the country at investment grade.

 

Ratings agencies warned of the elevated government debt after last year’s medium-term budget rattled markets with a steep acceleration of debt-to-GDP projections.

 

The February 2018 budget projected gross debt peaking at 56.2 percent of GDP in the medium term.

 

“The rating agencies will look for fiscal slippage and should the MTBPS deliver materially higher public sector debt projections, the credit rating agencies would see this as credit negative,” Annabel Bishop, chief economist at Investec, said.

 

Mboweni is expected to show how he will execute Ramaphosa’s plan to revive cash-strapped state firms such as Eskom and South African Airways.

 

The firms are cited by ratings agencies as a drain on the Treasury’s purse.

 

Moody’s is expected to be first to assess Mboweni’s budget when it published its ratings review after the speech.

 

“Credible turnaround plans are needed in exchange for additional guarantees (to state-owned firms) to not be viewed as ratings negatives,” Momentum Investments’ Herman van Papendorp and Sanisha Packirisamy said in a note.

 

($1 = 14.3488 rand)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Ivory Coast rubber output to reach 2 mln T in 2023 -ag minister

ABIDJAN (Reuters) - Ivory Coast’s natural rubber output will reach 2 million tonnes by 2023, the minister of agriculture said on Monday, a more than three-fold rise in production as plantations spread to new parts of the country.

 

Ivory Coast is Africa’s top natural rubber exporter and the seventh largest producer in the world. New plantations have proliferated as farmers switch from cocoa to rubber in search of more stable incomes.

 

“This trend will allow us to consolidate our position in Africa and in the world,” Agriculture Minister Mamadou Sagafowa Coulibaly said during an international rubber conference in the commercial capital Abidjan.

 

The country’s natural rubber association (APROMAC) increased it 2020 forecast to 750,000 tonnes in January after the previous 600,000 tonne target was met in 2017.

 

APROMAC President Eugene Kremien said on Monday about 165,000 farmers were planting rubber on around 600,000 hectares of land and that turnover for the sector was 495 billion CFA francs ($880 million) in 2017.

 

($1 = 562.8400 CFA francs)

 

 

South African state firm Transnet removes CEO

JOHANNESBURG (Reuters) - The board of directors of South African state-owned logistics firm Transnet said it had removed Chief Executive Siyabonga Gama, who has been accused of misconduct in a multi-million-dollar deal.

 

Transnet, which operates nearly three-quarters of the African rail network, the bulk of which is in South Africa, has been investigating allegations of corruption in the procurement of diesel and electric locomotives.

 

The board said late Sunday that it had lost confidence in Gama and that his last day as CEO would be Monday.

 

Gama was not immediately available for comment.

 

“We value and require transparency, accountability and expenditure that is cost-effective ... But we have found Gama’s conduct – particularly during the investigation into the tender for new locomotives, with an inexplicable increase in excess of 9 billion rand ($627 million) in costs - to be incompatible with that culture,” Transnet’s board said.

 

Transnet is one of a handful of South African state firms that became embroiled in corruption scandals under former President Jacob Zuma.

 

However, Zuma has denied any wrongdoing and says he is the victim of a politically motivated witch-hunt, but new President Cyril Ramaphosa has launched an inquiry into allegations that tenders were awarded illegally during his predecessor’s time in office.

 

($1 = 14.3462 rand)

 

 

Kenya warns against unlicensed online forex trading

NAIROBI (Reuters) - Kenya’s Capital Markets Authority (CMA) warned Kenyans on Monday against online foreign exchange trading through unlicensed entities, saying they risked losing their investments.

 

Paul Muthaura, CMA Chief Executive, said he observed several individuals and entities carrying on or purporting to carry on the business of an online foreign exchange broker or a money manager without the relevant licence by the Authority.

 

“The Capital Markets Authority (CMA) has issued only one license to EGM Securities Limited (formerly Execution Point Limited) to operate as a Non – Dealing Online Foreign Exchange Broker,” Muthaura said in a statement.

 

CMA said it planned to take appropriate action against any persons illegally conducting online foreign exchange trade. It asked anyone affected by the activity to report to the CMA.

 

It said all online foreign exchange brokers or money managers not licensed by the Authority should cease trading immediately.

 

 

South Africa's Verimark says majority shareholder intends to delist firm

JOHANNESBURG (Reuters) - South Africa’s Verimark Holdings said on Monday its majority shareholder intended to acquire the remaining shares and delist the firm which sells direct response television products.

 

The company said it had received notice from the Van Straaten Family Trust, which holds around 64 percent stake in Verimark, that it planned to acquire the minority interests.

 

Verimark said on Monday its revenue for the six months ended 31 August 2018, fell 1 percent to 207.5 million rand on the back of lower consumer confidence due to the country’s recession and most retailers tightening up on stock holding.

 

 

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.

 

 

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.

 

 

Morocco inflation drops to 1.1 pct y/y in September

RABAT, (Reuters) - Morocco’s annual consumer price inflation dropped to 1.1 percent in September from 1.7 percent in August as food price rises slowed from last year, the High Planning Commission said on Monday.

 

Annual food inflation dropped to 0.6 percent in September, down from 1.1 percent in August, while non-food inflation increased to 2.1 percent from 1.9 percent.

 

Inflation of goods and miscellaneous services eased to 6.3 percent in September from 6.5 percent in the previous month. Communication costs remained flat at 0.3 percent.

 

On a month-on-month basis, the consumer price index rose to 0.3 percent in September from 0.1 percent in August as food price inflation increased to 0.5 percent from 0.2 percent.

 

The commission forecast Morocco’s annual inflation would rise from 0.8 percent in 2017 to 1.7 percent in 2018 and then slow to 1.3 percent in 2019.

 

 

Kenyan ARM Cement's administrator seeks asset sale to cut debt, keep it afloat

NAIROBI (Reuters) - The administrator of Kenya’s debt-laden ARM Cement will ask its creditors for support to keep the company running by selling some of ARM’s assets to cut debt, as well as a plan to engage with financiers for working capital.

 

George Weru, a co-administrator for the cement firm, told Reuters the proposals will be put to the company’s creditors on Tuesday when they meet to chart the best way forward.

 

The company was put into administration in August by some of its creditors and its shares suspended from the Nairobi bourse. It owes a total of about $190 million to a range of creditors including local commercial banks.

 

“The level of leverage is significant so what we are seeking to do is to get approval to run a transaction process, aimed at disposing a subsidiary or certain assets to bring cash to reduce the debt,” Weru said.

 

“In the meantime we recommend that operations are continued and therefore we are also seeking permission to engage financiers for capital.”

 

 

He said the company’s production machinery was in need of urgent spare parts while its management needed to be rebuilt, after several key staff left due to its cash flow problems.

 

 

Liam Fox says Trump 'very keen' on trade deal

International Trade Secretary Liam Fox has told the BBC he believes US President Donald Trump is "very keen" to do a trade deal.

 

Mr Fox was speaking in New York, where he was in town to promote the ties between the two countries.

 

His comments come just days after the Trump administration told Congress it planned to start formal talks with the UK after it leaves the European Union.

 

The prospects for a new agreement have already faced scepticism.

 

US President Donald Trump has taken an aggressive "America First" approach to negotiation and the two sides are likely to disagree on issues such as US farm exports and chemical standards.

 

In a BBC interview, Mr Fox said he believes the UK is in a strong position, due in part to the the close military ties between the two countries.

 

"Our trade relationship is part of a wider relationship," Mr Fox said. "There is a unique relationship with the United States."

 

US moves to negotiate trade deals with Japan, UK, EU

UK-US trade deal should include free movement, groups urge

Mr Fox spoke on board HMS Queen Elizabeth - the Royal Navy's flagship aircraft carrier - where a select group of business leaders from firms such as BAE Systems and Lockheed Martin were welcomed on board for a day of talks about cyber security.

 

In a brief address, Mr Fox emphasised the connections between security and trade.

 

He also had a bit of pomp planned for later in the evening: the hoisting of the trade department's flag on a navy vessel for the first time in some 200 years.

 

"Trade and security are linked," he told the crowd of more than 100 people. "Where better to be discussing the interplay of these relationships?"

 

But analysts in the US warned that US President Donald Trump has displayed little regard for historic alliances.

 

This year he imposed tariffs on foreign steel and aluminium, including from close friends such as the EU and Canada. He has also threatened to levy tariffs on foreign cars and car parts.

 

"The president has shown when it comes down to some of these issues, it doesn't matter if you're an ally or not," said Daniel Hamilton, a professor at the Johns Hopkins School of Advanced International Studies in the US.

 

Professor Hamilton said it could be years before a new deal is actually presented, given the constraints imposed by Brexit and other considerations.

 

"This is good politics and good messaging [by both countries] but there's not much substance behind it," he said.

 

Marjorie Chorlins, the executive director of the US-UK Business Council at the US Chamber of Commerce, also said she does not think the famed "special relationship" between the US and UK will factor into the president's thinking.

 

"I don't think the UK will be treated any differently than other allies in that regard," said Ms Chorlins, also vice president for European affairs at the chamber.

 

Others were more optimistic.

 

Theodore Bromund is a senior research fellow at the Heritage Foundation, a conservative think tank in Washington.

 

He said he expects serious talks to start as soon as April - even if a new deal will not be able to go into effect immediately.

 

Mr Trump faces political pressure to prove he can make trade deals, not just break them, as his tariffs spark retaliations that have hurt key constituencies such as farmers.

 

And despite his tough rhetoric, Mr Trump has so far been willing to sign off on agreements - such as a revised North American Free Trade Agreement - that represent only modest change, Mr Bromund said.

 

The administration "certainly sounds different, but is it in practice much different?" he said.

 

The UK's status as one of the world's largest economies, as well as the billions in trade and investment between the US and UK, also make the logic of a deal inescapable, Mr Bromund added.

 

"I would never recommend to the UK that it simply rely on US good will for its trade policy," he said.

 

But "the structural advantages that the UK has in dealing with the United States shouldn't be underestimated."--BBC

 

 

Saudi summit begins despite calls for a boycott

Saudi Arabia's investment conference has gone ahead despite international pressure for a boycott.

 

The Future Investment Initiative (FII) was due to feature 150 high profile speakers from 140 firms.

 

But around 40 attendees are understood to have pulled out amid allegations the country was behind Saudi journalist Jamal Khashoggi's killing.

 

Prominent Saudi critic Khashoggi vanished on 2 October after visiting the Saudi consulate in Istanbul.

 

Turkish authorities allege he was killed in the building by Saudi agents. On Monday, Saudi Arabia blamed Khashoggi's death on a "rogue operation".

 

BBC Middle East journalist Sebastian Usher, who is in Riyadh, says while the "big names may have pulled out, hundreds are still attending — in some cases representing the very companies whose bosses decided it was no longer expedient for them to attend".

 

" The talk among delegates is of pragmatism, that there is a big future at stake in Saudi Arabia and this obstacle — however shocking and overwhelming — will eventually be overcome."

 

Report

What is it?

The so-called "Davos in the Desert" is a three-day event from 23 to 25 October organised by Saudi Arabia's sovereign wealth fund.

 

The conference is a forum for business figures, politicians and civic society groups to discuss topics related to economic development, including technology, global governance and the environment.

 

The first FII, held last year, featured discussions on artificial intelligence, cryptocurrencies and climate change.

 

Saudi Arabia's Crown Prince Mohammed bin Salman also announced the investment of $500bn (£381bn) in a new city and business zone.

 

The conference aims to attract more foreign investment into Saudi Arabia and is an opportunity for companies to build relationships and secure lucrative contracts in the Kingdom.

 

It's part of the country's "2020 Vision", an economic plan to diversify Saudi Arabia's economy and reduce its reliance on oil revenues.

 

The Kingdom is currently one of the world's largest oil producers but foreign investment has dropped in recent years. According to the UN, investments came to just $1.4bn last year, down from $12.2bn in 2012.

 

Who's dropped out?

Organisers said more than 150 speakers and moderators were due to attend the event.

 

At least 40 attendees have said they'll no longer be going. These include the chief executives of JP Morgan, Siemens and Blackrock, and IMF head Christine Lagarde, many of whom attended the event when it was first held last year.

 

Sir Richard Branson has also halted talks over a $1bn (£756m) Saudi investment in Virgin.

 

Several media outlets have withdrawn their support too, including Bloomberg, CNN and the Financial Times.

 

Who's going?

A page with a full list of confirmed speakers has been removed from the conference's website.

 

Consultancy firms McKinsey, PWC, Ernst & Young, Deloitte, BCG, Oliver Wyman, and Bain & Company are all named as sponsors of the event, along with research company SWFI.

 

None responded to questions about whether or not they had plans to withdraw.

 

The majority of initially-confirmed speakers are still attending including Pakistan's Prime Minister Imran Khan, PepsiCo's vice-chairman Mohmood Khan and George Atta, global smart city leader at Ernst & Young.

 

The BBC also understands that while several high-profile guests have withdrawn their support, representatives from their businesses will still be present at the conference.

 

What have governments said?

Several governments have pulled attendees from the conference including ministers from France, Australia, New Zealand and the Netherlands.

 

UK International Trade Secretary Liam Fox has also withdrawn from the event.

 

US Treasury Secretary Steven Mnuchin will not attend the conference, but has said he will still be in Riyadh for a meeting to combat terrorism financing.

 

Simon Paul Collis, the UK's ambassador to Saudi Arabia, will still be attending, along with Simon Penney, Britain's Trade Commissioner for the Middle East, Afghanistan and Pakistan.

 

Meanwhile, German chancellor Angela Merkel has also said Berlin will suspend exports of military equipment to Saudi Arabia whilst investigations continue into the disappearance of Khashoggi.

 

Germany's Economy Minister Peter Altmaier has urged European nations to join them. Last month, Germany approved the sale of €416m(£367.7m) worth of arms sales to Saudi Arabia.--BBC

 

 

World's longest sea crossing: Hong Kong-Zhuhai bridge opens

Chinese President Xi Jinping has officially opened the world's longest sea crossing bridge, nine years after construction first began.

 

Including its access roads, the bridge spans 55km (34 miles) and connects Hong Kong to Macau and the mainland Chinese city of Zhuhai.

 

The bridge has cost about $20bn (£15.3bn) and seen several delays.

 

Construction has been dogged by safety issues - at least 18 workers have died on the project, officials say.

 

Mr Xi attended the opening ceremony of the bridge which took place in Zhuhai along with the leaders of Hong Kong and Macau on Tuesday.

 

The bridge will open to regular traffic on Wednesday.

 

What's so special about this bridge?

The crossing connects three key coastal cities in southern China - Hong Kong, Macau and Zhuhai.

 

The bridge, designed to withstand earthquakes and typhoons, was built using 400,000 tonnes of steel, enough to build 60 Eiffel Towers.

 

Images of the mega bridge

About 30km of its total length crosses the sea of the Pearl River delta. To allow ships through, a 6.7km section in the middle dips into an undersea tunnel that runs between two artificial islands.

 

The remaining sections are link roads, viaducts and land tunnels connecting Zhuhai and Hong Kong to the main bridge.

 

Why has it been built?

It is part of China's plan to create a Greater Bay Area, including Hong Kong, Macau and nine other cities in southern China.

 

The area is currently home to 68 million people.

 

In the past, travelling between Zhuhai and Hong Kong would take up to four hours - the new bridge cuts this down to 30 minutes.

 

Can anyone drive across the bridge?

No. Those who want to cross the bridge must obtain special permits, allocated by a quota system. And all vehicles will pay a toll.

 

The bridge is not served by public transport, so private shuttle buses will also ply the route. There is no rail link.

 

Authorities initially estimated that 9,200 vehicles would cross the bridge every day. They later lowered their estimations after new transport networks were built in the region.

 

What are people saying about it?

There's been a great deal of criticism of the project.

 

The bridge has been dubbed the "bridge of death" by some local media. At least nine workers on the Hong Kong side have died and officials told BBC News Chinese that nine had died on the mainland side, too.

 

Hundreds of workers have also been injured during the construction.

 

There have also been concerns about the environmental impact.

 

Environmental groups say the project may have caused serious harm to marine life in the area, including the critically rare Chinese white dolphin.

 

The number of dolphins seen in Hong Kong waters has decreased from 148 to 47 in the past 10 years, and they are now absent from the waters near the bridge, according to the Hong Kong branch of the World Wide Fund for Nature (WWF).

 

"The project has made irreversible damage to the sea," said Samantha Lee, Assistant Director of Ocean Conservation at the WWF. "I am worried that the number will never rise again."

 

Is it going to make up its costs?

The bridge, surrounding link roads and artificial islands cost a staggering $20bn to build - the main bridge alone cost $6.92bn.

 

Chinese officials say it will generate up to 10 trillion yuan ($1.44tn; £1tn) for the economy, but one Hong Kong lawmaker cast doubt on that figure.

 

"I am not so sure either how the bridge can sustain itself if not many cars are using it," Tanya Chan told BBC News Chinese.

 

"I am pretty sure that we would never earn that [construction cost] back."

 

According to an estimate by BBC Chinese, the bridge will only earn around $86m in tolls per year.

 

In fact, the bridge's maintenance costs would already take away a third of this income.

 

Critics have called the bridge a "big white elephant" that guarantees no economic return. Others have said its main purpose is symbolic, ensuring Hong Kong is physically connected to the mainland.--BBC

 

 

Nobel scientists make Brexit plea for free movement and funding

Some of the biggest names in science are pleading for a deal on Brexit to avoid damaging British and European research.

 

A letter to Theresa May and Jean-Claude-Juncker has been signed by 29 Nobel Laureates and six winners of the prestigious Fields medal.

 

Science needs "the flow of people and ideas across borders", it says.

 

It comes as a survey found that many scientists are considering leaving the UK.

 

Sir Paul Nurse, one of the signatories and a Nobel prize-winner for research into breast cancer, said: "The message is, 'take science seriously'."

 

Science can help tackle global challenges like treating disease, generating clean energy and guaranteeing food supplies, the letter says - but to do that it needs to bring together the most talented researchers.

 

And it says Britain and the EU "must now strive to ensure that as little harm as possible is done to research".

 

What are the top scientists worried about?

Funding and freedom of movement are the two big concerns.

 

Over the years of Britain's membership of the EU, its scientists have secured more European grants than the country has paid in. Sir Paul reckons that without a deal, British science could lose about £1bn a year.

 

There had been hopes that Britain could rapidly negotiate a new science relationship with the EU, with an associate status like that of Switzerland, in which contributions are made and grants received. But that has not happened so far.

 

The other worry is that without freedom of movement, the brightest scientific talent may be put off by the bureaucracy of having to apply for a visa.

 

What about younger researchers?

In an internal survey, staff at the Francis Crick Institute in London were asked for their views on Brexit - the Crick is the largest biomedical research centre under one roof in Europe.

 

Of the roughly 1,000 scientists on the staff, 40% are from EU countries and a priority was to find out what they might do after Brexit.

 

78% of the EU scientists said they were "less likely" to stay in the UK.

 

51% of all the institute's scientists - including those from Britain - said they were less likely to stay.

 

45% of lab heads said Brexit had already affected their work - either recruiting new scientists, being excluded from EU programmes or facing increased costs after the fall in the pound.

 

97% of those who responded said a no-deal Brexit would be bad for UK science.

 

Why are scientists thinking of leaving the UK?

One manager of a lab at the institute, Val Maciulyte from Lithuania, told me the "uncertainty" of the Brexit process meant she was considering moving after seven years in Britain.

 

"I think that definitely makes me think of other places than the UK, I'm thinking about other options in Europe, in central Europe, or even maybe going back to Lithuania," she said.

 

Jasmin Zohren, a post-doctoral researcher from Germany, said it was difficult to plan because "no one knows what is going to happen" but she wants to live in a country that is in the EU, despite "loving London".

 

She said: "I'm currently funded by the EU - also for my PhD which I did in the UK - and I know that lots of this money will not arrive in the UK any more. And of course that's a big concern."

 

A senior scientist, Monica Rodrigo from Spain, said that the uncertainty was having an impact on everyone.

 

"I think the biggest thing is the level of stress that people are having because it's not only affecting your professional life but it's affecting other things," she said.

 

"Even if you're a British scientist it's affecting how you carry on your life and what you're going to do in the future - are you going to stay where there's limited funding or go somewhere else?"

 

What will happen if there's no deal?

I put it to Sir Paul that even without a deal, British science would be strong enough to cope.

 

"We will of course survive, we will of course receive funding from the government and we will keep going," he says.

 

"But at the moment Britain is at the top of the tree; we are considered widely around the world to be the best and we are in danger of losing that top position if we don't get this right."

 

A government spokesman said: "The UK plays a vital role in making Europe a pioneering base for research, and values the contribution that international researchers make to the UK.

 

"This will not change when we leave the EU.

 

"We will seek an ambitious relationship on science and innovation with our EU partners, exploring future UK participation in mutually beneficial research programmes, and will continue to support science, research and innovation through our modern industrial strategy.

 

"We have a proud record of welcoming the world's brightest scientists and researchers to work and study here, and after we leave the EU we will have an immigration system to support this."--BBC

 

 

Northern Rock: US firm 'misled' UK government on mortgages

A US private equity company has been accused of misleading the government about the biggest sale of state assets in UK history.

 

BBC Panorama has discovered Cerberus told the government it was planning to offer homeowners better mortgage deals before its £13bn purchase of former Northern Rock mortgages in 2016.

 

But the company hasn't provided any new mortgages and 65,000 homeowners are still trapped on high interest rates.

 

Cerberus denies the allegation.

 

Many of the homeowners are mortgage prisoners, who cannot shop around for a better deal because their loans are too large or their credit rating has been damaged.

 

Trap

Lisa and Mark Elkins have to pay £2,500 a month on their mortgage because their interest rate is nearly 5%. That's about three times the best market rate.

 

They have tried to keep up with the monthly payments by taking on extra jobs and working long hours. The couple has also borrowed £20,000 from family and friends.

 

But Lisa says they now have no choice but to sell their home of 15 years: "I love the neighbours and I love the house but it's become a rock around my neck. You feel like you're sinking and you can't get up and I can't have that any more."

 

The couple has been trapped on high interest rates since the government took over Northern Rock in 2007.

 

BBC Panorama has calculated that the high rates have cost the Elkins an additional £30,000 over the past decade.

 

Mark tells the programme the money could have transformed their lives: "We wouldn't have been forced into taking on loans from family and struggling. I could have a day or two days off, I could have had a weekend."

 

'New deals'

The Labour peer Lord McFall says that many homeowners are paying large amounts of extra interest: "In some of the case studies I've seen, people with a mortgage would be paying an extra £40-50,000 in the mortgage before it's completed. That is totally unacceptable."

 

At the time of the £13bn sale, the government bank, UKAR, told Lord McFall that homeowners should get better mortgage deals from Cerberus.

 

In a letter to the peer, UKAR said that "by returning ownership to the private sector the option to be offered new deals, extra lending and fixed rates should become available to them".

 

A UKAR spokesman told the programme that Cerberus had the ability to lend to the former Northern Rock customers and that UKAR believed they intended to do so.

 

"The reply to Lord McFall sent on behalf of the UKAR board of directors was based on information presented to UKAR and the board had no reason to disbelieve this at that time."

 

'Challenger bank'

Panorama understands that the information presented to UKAR was in the pitch documents Cerberus submitted when it applied to buy the mortgages.

 

 

They said they planned to "evolve into an online challenger bank" providing customers with "a wider range of products".

 

Before the sale was finalised, however, the Financial Conduct Authority told Cerberus it couldn't offer new mortgages until it put the right systems and people in place. Nearly three years later, Cerberus still hasn't done that.

 

The private equity firm said: "Cerberus and our affiliates take great pride in being good corporate citizens who are committed to compliance with the strongest ethical standards and all legislative and regulatory requirements. We reject any allegations by BBC Panorama to the contrary."

 

Mistakes and complaints

Some of the homeowners say that as well as paying high interest rates, they have also been poorly treated by Cerberus.

 

Rachel and Adrian Neale, from Hinckley, fell into arrears on their mortgage when Rachel became seriously ill with Crohn's Disease.

 

They have paid off most of the arrears and have kept up their monthly payments with Cerberus's mortgage company, Landmark Mortgages. But Landmark keeps making mistakes and issuing default notices.

 

The couple say they have already made about 70 complaints and that nearly all have been upheld.

 

"You're in their palm basically," said Adrian. "They can do what they want, that's how it makes you feel, they can pull the rug from underneath you at any time."

 

It can take hours on the phone to sort out the mistakes and the default notices have badly affected Adrian's building business.

 

"I can't take on big jobs because I can't gain credit to fund a big job. Building merchants, credit accounts, I can't get access to it and it's held me back massively really in my business."

 

Landmark says it is committed to high standards of fair customer treatment: "Our staff are trained to deliver fair, consistent and right customer outcomes. Landmark promotes high conduct standards, adopting a tailored approach to customers experiencing financial hardship to ensure we find a suitable and fair solution."--BBC

 

 

China vs the US: not just a trade war

If you needed any further evidence that the trade war between the US and China is not just about trade, consider what US Secretary of State Mike Pompeo said about the world's second-largest economy during a recent trip to Latin America.

 

"When China comes calling it's not always to the good of your citizens," he said. "When they show up with deals that seem too good to be true, it's often the case that they, in fact, are."

 

The reference to deals was a thinly veiled attempt at punching holes in Beijing's One Belt One Road programme - a $124bn Chinese project aimed at facilitating trade and investment links between Asia, Africa, Europe and beyond.

 

It was first unveiled by President Xi Jinping in 2013, and has largely been seen as his baby - but is seen by critics as part of China's plan to increase its global influence.

 

The programme has come under fire recently for what some have called "debt diplomacy" - implying that when you do a deal with China, you end up in debt.

 

Analysts say the US pressure on Beijing has empowered other countries to speak up against China when in the past they would have kept quiet. Sri Lanka, Malaysia and even Pakistan have all expressed concerns about the programme.

 

And China isn't just facing American criticism on the Belt and Road programme.

 

Take the comments from the US Defense Secretary James Mattis at this weekend's Association of South East Asian Nations (Asean) defence meeting, for instance. The US typically criticises China's operations in the South China Sea at these summits, but this time he went a step further.

 

"We will not be intimidated, and we will not stand down, for we cannot accept [China's] militarisation of the South China Sea or any coercion in this region," Mr Mattis said, according to the Hill, whilst reaffirming the US's commitment to the region and to the freedom of navigation in the South China Sea.

 

The comments by Mr Pompeo and Mr Mattis should not be seen in isolation. They are part of what many observers have told me is an increasingly aggressive narrative on China from the Trump administration on pretty much every front.

 

It's a narrative we should not be surprised by. It's been consistently signalled, and perhaps nowhere more blatantly than in the US Vice-President Mike Pence's recent speech at the Hudson Institute on the US administration's policy towards China. He said "Beijing is employing a whole-of-government approach, using political, economic, and military tools, as well as propaganda, to advance its influence and benefit its interests in the United States".

 

Mr Pence is due to attend the APEC (Asia-Pacific Economic Cooperation) summit in Papua New Guinea next month, where he is likely to come face to face with China's President Xi Jinping who is also expected to attend.

 

Papua New Guinea is the latest country to join China's One Belt One Road programme and it is yet another arena where you can expect the battle for influence between the US and China to play out.

 

While the US sees the trade war as an opportunity to right the wrongs it believes it has suffered at the hands of China for decades of unfair trade, Beijing sees the trade war as the Trump administration's attempts at curbing China's rise.

 

So even if the two sides come to some sort of a resolution on trade - which in itself is highly unlikely at this point - this is not a conflict that is going to disappear. Neither side is going to give in quickly. This is just the beginning.--BBC

 

 

Morrisons loses data leak challenge

Morrisons has lost its challenge to a High Court ruling that it is liable for a data breach that saw thousands of its employees' details posted online.

 

The Court of Appeal upheld the original decision against the supermarket, issued in December 2017.

 

Workers brought a claim against the company after employee Andrew Skelton stole the data, including salary and bank details, of nearly 100,000 staff.

 

Morrisons said it would now appeal to the Supreme Court.

 

If that appeal fails, those affected will be able to claim compensation for "upset and distress".

 

The case is the first data leak class action in the UK.

 

It follows a security breach in 2014 when Skelton, then a senior internal auditor at the retailer's Bradford headquarters, leaked the payroll data of employees.

 

He posted the information - including names, addresses, bank account details and salaries - online and and sent it to newspapers.

 

He was jailed for eight years in 2015 after being found guilty at Bradford Crown Court of fraud, securing unauthorised access to computer material and disclosing personal data.

 

Claimants 'delighted'

Morrisons had argued that it could not be held liable for the criminal misuse of its data.

 

But three Court of Appeal judges rejected the company's appeal, saying they agreed with the High Court's earlier decision.

 

They said Morrisons was "vicariously liable for the torts committed by Mr Skelton against the claimants".

 

Nick McAleenan of JMW Solicitors, who was representing the claimants, said they were "delighted" with the outcome.

 

"These shop and factory workers have held one of the UK's biggest organisations to account and won - and convincingly so," he added.

 

"This latest judgement provides reassurance to the many millions of people in this country whose own data is held by their employer."

 

Further appeal

Morrisons said in a statement after the hearing: "A former employee of Morrisons used his position to steal data about our colleagues and then place it on the internet and he's been found guilty for his crimes.

 

"Morrisons has not been blamed by the courts for the way it protected colleagues' data, but they have found that we are responsible for the actions of that former employee, even though his criminal actions were targeted at the company and our colleagues.

 

"Morrisons worked to get the data taken down quickly, provide protection for those colleagues and reassure them that they would not be financially disadvantaged. In fact, we are not aware that anybody suffered any direct financial loss.

 

"We believe we should not be held responsible, so that's why we will now appeal to the Supreme Court."--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/20181023/5b2a6998/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/20181023/5b2a6998/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/20181023/5b2a6998/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/20181023/5b2a6998/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/20181023/5b2a6998/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/20181023/5b2a6998/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/20181023/5b2a6998/attachment-0011.jpg>