Major International Business Headlines Brief::: 18 September 2018

[Bulls n Bears]

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Major International Business Headlines Brief::: 18 September 2018

 


 

 


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

 


 

 


 

 

*  British fund Gemcorp extends $250 million loan to Zimbabwe -CEO

*  Petra Diamonds' core profit climbs, CEO to step down

*  Botswana's 2018 budget deficit to widen to 2.3 pct of GDP

*  South Africa's rand gains after dollar's tariff falter

*  South Africa's competition watchdog imposes conditions on Sibanye-Lonmin deal

*  Eskom has coal shortages at 10 power plants: spokesman

*  Naspers plans to spin off, list pay-TV unit

*  Tunisia's 2019 debt payments to hit record of more than $3 bln

*  US imposes new tariffs on $200bn of Chinese goods

*  Elon Musk sued for libel by British Thai cave rescuer

*  Coca-Cola 'in talks' over cannabis-infused drinks

*  Brexit report to consider workforce impact

*  Soylent meal replacement gets UK launch

*  No-deal Brexit would hit UK economy, says IMF

*  New 100 and 200 euro notes unveiled

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

British fund Gemcorp extends $250 million loan to Zimbabwe -CEO

HARARE (Reuters) - London-based emerging market fund Gemcorp Group said on Monday it had extended a $250 million loan to Zimbabwe to help the country import essential goods like electricity, fuel and medicine, the company’s CEO said.

 

The southern African nation is facing its worst shortages of cash dollars since it dumped its own currency in 2009 in favour of the U.S. currency. This has made it difficult for companies, including mines, to pay for imports.

 

Zimbabwe’s backlog for foreign payments is more than $600 million, according to the central bank.

 

Gemcorp was formed in 2014 by Atanas Bostandjiev, a former executive of Russian investment bank VTB Capital, part of banking group VTB.

 

“With this facility, we are financing and coordinating the delivery of essential goods to help support the Zimbabwean economy,” Bostandjiev said in a statement.

 

Zimbabwe’s new Finance Minister Minister Mthuli Ncube said the loan was a show of confidence in an economy buffeted by a serious liquidity crisis and unemployment above 80 percent.

 

The former British colony became a pariah under Robert Mugabe’s nearly four-decade authoritarian rule after it began to default on loans from foreign lenders like the International Monetary Fund and World Bank.

 

Mugabe was forced to resign after a coup in November, paving the way for Emmerson Mnangagwa, who went on to be elected president in a disputed vote held on July 30.

 

Without loans from global lenders, Zimbabwe has struggled to attract credit lines and external investment required to reboot its economy.

 

In May this year, Britain’s development finance institution CDC became the first British company to extend a direct commercial loan to Zimbabwe in more than two decades, making made available a $100 million facility to private firms through Standard Chartered Bank.

 

“The granting of the facility by Gemcorp is a strong signal by foreign investors of their growing confidence in Zimbabwe. I expect more investors to follow suit,” Ncube said in a statement.

 

Ncube last week said he would accelerate plans to pay $1.8 billion arrears to the World Bank and the African Development Bank to rebuild investor confidence. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Petra Diamonds' core profit climbs, CEO to step down

LONDON (Reuters) - Petra Diamonds on Monday reported a jump in full-year adjusted core earnings due to a rise in production at its continuing mines and said its chief executive would step down.

 

This pushed Petra’s London-listed shares, which are down 40 percent this year, jumped more than 6 percent to their highest in over a month while the wider index inched slightly lower.

 

Petra was hobbled by a stronger South African rand and operational delays in the first half of the year as well as a confiscation of diamonds in Tanzania that left it strapped for cash and in crippling debt.

 

But improved performance in its diamond mines in the second half, a cash raise in June and a reversal in rand strength have helped the company cut debt and raise core earnings.

 

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose to $195.4 million from $142 million in the previous year.

 

Petra did not name a successor for its chief executive role and expects to announce two non-executive appointments next month. Outgoing CEO Johan Dippenaar has been at the helm since Petra merged with Crown Diamonds in 2005.

 

“Its been a hard 13 years... we have made six acquisitions, a substantial rebuild and redesign and that was quite a job,” Dippenaar told Reuters.

 

“In the June 2017 financial year we experienced a lot of challenges to effect this build up but we fought back well this year and the second half was solid.”

 

The Tanzanian government has not yet returned a consignment of diamonds that it confiscated from Petra last year after it temporarily blocked the company’s exports. At the same time, the company was hit by a two-week strike in South Africa.

 

“There have been a lot of uncomfortable conversations with investors over the last two years... they had to do something for shareholders...” an industry source, who declined to be named.

 

Petra’s chairman Adonis Pouroulis said in a statement that the company was approaching the final stage of its expansion plans and was positioned to reap the benefits.

 

Production rose 19 percent to 3.8 million carats when excluding the KEM Joint Venture because it was sold.

 

The company slipped into a net loss due to an impairment and a higher depreciation charge as well as higher financing costs.

 

In July, Petra forecast lower than estimated production for 2019 after reporting 2018 output at the bottom end of its forecast range.

 

“These results paint an underlying picture of operational improvements and the development of a corporate structure more in keeping with a miner moving from being capex-intensive to a stable and larger producer and, hopefully, a strong free-cash flow generator,” said Canaccord Genuity Limited analyst Des Kilalea.

 

 

 

Botswana's 2018 budget deficit to widen to 2.3 pct of GDP

GABORONE (Reuters) - Botswana sees its 2018 budget deficit widening to 2.3 percent of gross domestic product from a previous projection of 1.8 percent due to a downward revision in its mineral revenue forecast, the finance ministry said on Tuesday.

 

Botswana’s economy is expected to grow 4.5 percent this year, down from an estimate in February of 5.3 percent, deputy decretary for macroeconomic policy in the ministry of finance Kelapile Ndobano said at a 2019 budget conference.

 

 

 

South Africa's rand gains after dollar's tariff falter

JOHANNESBURG (Reuters) - South Africa’s rand gained early on Tuesday as broad dollar weakness supported investor appetite for riskier assets after Washington imposing additional tariffs on Chinese imports.

 

At 0645 GMT the rand was 0.35 percent stronger at 14.8750 per dollar compared with its New York close of 14.9275.

 

Trade-war tensions have intensified as U.S. President Donald Trump imposed additional 10 percent tariffs on about $200 billion worth of Chinese imports on Monday.

 

Washington has imposed tariffs on $50 billion worth of Chinese products to pressure China to make sweeping changes to its trade, technology transfer and high-tech industrial subsidy policies. Beijing has retaliated and talks between the world’s two largest economies to resolve their trade differences have produced no results.

 

The rand is expected to trade at 14.80 to 15.10 to the dollar on Tuesday, according to an early NKC African Economics note.

 

In fixed income, the yield on the benchmark government bond due in 2026 was flat at 9.250 percent.

 

Stocks were set to open higher at 0700 GMT, with the JSE securities exchange’s Top-40 futures index up 0.07 percent.

 

 

 

South Africa's competition watchdog imposes conditions on Sibanye-Lonmin deal

LONDON (Reuters) - South Africa’s competition watchdog on Monday approved the takeover of platinum producer Lonmin by Sibanye-Stillwater but imposed conditions to limit job losses.

 

The Competition Commission said the transaction, which is scheduled to close by the end of the year, did not prevent or lessen competition in platinum markets but did raise “significant public interest concerns”.

 

The commission said Sibanye had to start three short-term mining projects to avoid the loss of over 3,000 jobs, keep Lonmin’s existing contracts with black-owned suppliers and maintain Lonmin’s black-ownership deal with the Bapo ba Mogale community.

 

Lonmin, which is strapped for cash, unveiled plans to cut 12,600 jobs and a further 890 merger-related layoffs when its transaction with Sibanye was announced in December.

 

Both companies say the job cuts are inevitable and are necessary to save the rest of the 33,000-strong Lonmin workforce.

 

Sibanye’s chief executive told Reuters in May that shareholders might not find the Lonmin deal attractive if the Commission imposed tough conditions.

 

Sibanye and Lonmin were not immediately available for comment.

 

It is now up to the Competition Tribunal, which makes the final ruling on deals, to decide whether to accept the Commission’s recommendations.

 

 

 

Eskom has coal shortages at 10 power plants: spokesman

JOHANNESBURG (Reuters) - South African power utility Eskom said on Monday that it had less than 20 days of coal supplies at 10 of its 15 coal-fired power stations, posing a threat to national power supplies.

 

“Out of our 15 coal-fired power stations, 10 of them have less than 20 days. Clearly this is contrary to what the regulator has prescribed,” Eskom spokesman Khulu Phasiwe said.

 

Cash-strapped Eskom is critical to Africa’s most industrialised economy as it supplies more than 90 percent of its power and is one of its most indebted state firms.

 

 

 

Naspers plans to spin off, list pay-TV unit

JOHANNESBURG (Reuters) - South African media and e-commerce giant Naspers plans to spin-off and separately list its pay-TV unit, it said on Monday.

 

“This marks a significant step for the Naspers Group as it continues its evolution into a global consumer internet company,” the company said in a statement.

 

 

 

Tunisia's 2019 debt payments to hit record of more than $3 bln

TUNIS (Reuters) - Tunisia’s debt repayments will rise to a record level of more than 9 billion dinars ($3.24 billion) next year, the finance minister said on Monday.

 

The North African country’s economy has been in crisis since the toppling of autocrat Zine al-Abidine Ben Ali in 2011, with unemployment and inflation shooting up.

 

Last year, the debt service was about 7.9 billion dinars.

 

“Debt service will exceed 9 bln dinar next year compared with about 5.1 in 2016,” finance minister Ridha Chalgoum said, giving no other details.

 

Tunisia needs about 7 billion dinars in external financing in 2019, a senior official told Reuters last week.

 

The government aims to reduce its budget deficit to 3.9 percent next year from the 4.9 percent it forecasts for 2018.

 

($1 = 2.7739 Tunisian dinars)

 

 

 

US imposes new tariffs on $200bn of Chinese goods

The US is imposing new tariffs on $200bn (£150bn) worth of Chinese goods as it escalates its trade war with Beijing.

 

These will apply to almost 6,000 items, marking the biggest round of US tariffs so far.

 

Handbags, rice and textiles will be included, but some items expected to be targeted such as smart watches and high chairs have been excluded.

 

The Chinese commerce ministry said it had no choice but to retaliate.

 

The ministry said that it hoped the US would correct its behaviour, but did not specify what actions it would take.

 

The US taxes will take effect from 24 September, starting at 10% and increasing to 25% from the start of next year unless the two countries agree a deal.

 

President Donald Trump said the latest round of tariffs was in response to China's "unfair trade practices, including subsidies and rules that require foreign companies in some sectors to bring on local partners.

 

"We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices," he said.

 

Mr Trump also warned that if China retaliated then the US would "immediately pursue phase three" and impose further tariffs on another $267bn worth of Chinese products.

 

Such a move would mean almost all of China's exports to the US would be subject to new duties.

 

After opening lower, the Shanghai stock market ended the day 1.8% higher, while Tokyo was up 1.4% and Hong Kong gained 0.6%.

 

Hasn't the US already imposed tariffs?

Yes. In fact, this latest round marks the third set of tariffs put into motion so far this year.

 

In July, the White House increased charges on $34bn worth of Chinese products. Then last month, the escalating trade war moved up a gear when the US brought in a 25% tax on a second wave of goods worth $16bn.

 

This latest round means that about half of all Chinese imports to the US are now subject to the new duties.

 

It is also the biggest set of tariffs to date, and unlike the earlier rounds this latest list targets consumer goods, such as luggage and furniture.

 

That means households may start to feel the impact from higher prices.

 

US companies have already said they are worried about the effect of higher costs on their businesses and warned of the risk of job cuts.

 

Trump tariffs will hurt global growth, IMF warns

Will Trump's tariffs stop Chinese espionage?

While economists generally estimate that the tariffs will have little impact on the overall US economy, they have warned that the effects are difficult to predict.

 

What items have been targeted?

Officials have said they want to shield consumer goods from the taxes as much as possible.

 

But many everyday items such as suitcases, handbags, toilet paper and wool are included in this latest round of tariffs.

 

The list also includes several food items from frozen cuts of meat, to almost all types of fish from smoked mackerel to scallops and soybeans, various types of fruit and cereal and rice.

 

Products that help computer networks operate, such as routers, are also targeted.

 

Which items are exempt?

The list slated for tariffs originally included more than 6,000 items, but US officials later removed about 300 types of items, including smart watches, bicycle helmets, play pens, high chairs and baby car seats.

 

The changes come after fierce opposition from US companies including Apple and Dell, which fear the tariffs will increase their costs as many of their products are made in China.

 

Earlier this month, Apple wrote to US Trade Representative Robert Lighthizer warning that consumers would have to pay more for its products as a result of the proposed tariffs.

 

At the time, Mr Trump replied with a tweet urging Apple: "Make your products in the United States instead of China."

 

US tech firms ask for protection from next Trump tariffs

Why is the US doing this?

The White House says its tariffs are a response to China's "unfair" trade policies.

 

In theory, the tariffs will make US-made products cheaper than imported ones, and so encourage consumers to buy American. The idea is they would boost local businesses and support the national economy.

 

US officials hope the risk of economic harm will convince the Chinese government to change its policies.

 

The BBC's Asia business correspondent Karishma Vaswani said the escalating trade war between the two countries is in part due to a lack of understanding of the other's position.

 

"Given the diametrically opposing views Washington and Beijing have of their problems, this trade war is unlikely to get better before it gets worse - for them, or for any of us."

 

Many US businesses are critical of the tariffs with farmers, manufacturers, retailers and other industry groups forming a coalition to oppose the tariffs, calling them taxes on American families.

 

How has China responded?

China have previously imposed tariffs on $50bn of US products in retaliation, targeting their response against key parts of the president's political base, such as farmers.

 

The government has outlined a plan to impose further tariffs on roughly $60bn of US goods, and threatened other measures.

 

Are the two sides talking?

Not really. Talks between high-level officials ended in May without resolving the matter and efforts to restart discussions have failed.

 

US and China officials had discussed a new round of talks over the past week, but Mr Trump's latest move is likely to sour relations further.

 

China is reported to have said it would reject new trade talks if the President imposed the $200bn worth of tariffs on its exports.

 

Mr Trump's economic adviser, Larry Kudlow, has said they were still happy to talk: "We are ready to negotiate and talk with China anytime they are ready for serious and substantive negotiations."--BBC

 

 

 

Elon Musk sued for libel by British Thai cave rescuer

A British cave diver is suing tech billionaire Elon Musk for defamation after his repeated claims the diver is a child abuser.

 

Vernon Unsworth helped with the rescue of 12 Thai teenagers from a flooded cave in July.

 

Mr Musk has made several accusations against Mr Unsworth without evidence, including that he was a "child rapist".

 

The lawsuit seeks $75,000 (£57,000) in compensation and an injunction against Mr Musk to stop further allegations.

 

The filing also says Mr Unsworth is seeking "punitive damages" as well as the compensation, "to punish him for his wrongdoing and deter him from repeating such heinous conduct".

 

It says Mr Musk sometimes used his Twitter account and emails to "publish to the world false and defamatory accusations" against the Briton.

 

His account had over 22.5 million followers during this time, the filing states.

 

The South African-born head of Tesla previously tweeted it was "strange he hasn't sued me" when Mr Unsworth said he was considering legal action.

 

Mr Unsworth filed the suit in California. A separate suit will follow in London, the filing says.

 

"Musk's influence and wealth cannot convert his lies into truth or protect him from accountability for his wrongdoing in a court of law," Mr Unsworth's US attorney, L Lin Wood, said.

 

The first amendment of the United States Constitution which protects free speech makes defamation a challenging legal action to bring.

 

A plaintiff (the person bringing the case) has to prove the statement made about them is false and that it has caused them material harm.

 

However, the toughest hurdle is that if the person bringing the case is regarded as a public figure - and 'public figure' is given a pretty wide interpretation - it has to be proved that the defendant acted maliciously.

 

In other words that the person making the statement knew it to be false and went on to make it.

 

Another way of putting it would be that it must be proved that the defendant knowingly lied with the intention of harming the plaintiff.

 

The pair first clashed over Mr Musk's offer of a mini-submarine to help with the cave rescue.

 

The entrepreneur posted footage of the vehicle on Twitter and suggested it could be used to help save the trapped teens.

 

Mr Unsworth told CNN that the submarine was "just a PR stunt [that] had absolutely no chance of working" and said Mr Musk could "stick his submarine where it hurts".

 

Why was Elon Musk at the Thai cave rescue?

The full story of Thailand’s extraordinary cave rescue

In pictures: Thai artists' huge mural of cave rescue heroes

The Tesla founder responded with a series of tweets accusing Mr Unsworth of paedophilia.

 

Although he later deleted the tweets and offered an apology to the diver, Mr Musk reignited the row earlier this month.

 

An email to Buzzfeed reporter Ryan Mac included the claim the Briton was a "child rapist", imploring the reporter to "find out what's actually going on" and suggesting the diver took no part in the cave rescue.

 

The billionaire also said he hoped Mr Unsworth would sue him.

 

Mr Unsworth did not take part in the dives but had previously explored the cave complex extensively.

 

He knew about the raised ledge known as Pattaya Beach where the boys and their football coach could have sought shelter, travelled into the caves shortly after they went missing and called in the two expert British divers who eventually found the trapped group.

 

Several divers told Buzzfeed that he had worked continuously on the rescue. "He was pivotal to the entire operation," said British diver Rick Stanton.--BBC

 

 

 

Coca-Cola 'in talks' over cannabis-infused drinks

Coca-Cola is best known for its eponymous caffeine-based drink, but the firm now appears to be experimenting with a different drug: cannabis.

 

According to Canada's BNN Bloomberg, the drinks giant is in talks with local producer Aurora Cannabis about developing marijuana-infused beverages.

 

These would not aim to intoxicate consumers but to relieve pain.

 

The firm declined to comment but said it was watching the cannabis drinks market closely.

 

"Along with many others in the beverage industry, we are closely watching the growth of non-psychoactive cannabidiol as an ingredient in functional wellness beverages around the world," Coca-Cola said in a statement.

 

Corona beer firm pours $4bn into weed

Cannabis debate: What you need to know

Cannabidiol, a constituent of cannabis, can help ease inflammation, pain and cramping, but has no psychoactive effect.

 

It comes as Canada prepares to follow certain US states in legalising cannabis for recreational use, after years of permitting it for medicinal purposes.

 

It has given rise to a large pot growing industry and some high-profile partnerships.

 

Earlier this year, beer giant Molson Coors Brewing said it would make cannabis-infused drinks with Hydropothecary, while Corona-beer maker Constellation Brands invested $4bn more into pot firm Canopy Growth.

 

A partnership between Coke and Aurora would mark the first entry of a major manufacturer of non-alcoholic drinks into the market.

 

'Recovery drink'

Quoting unnamed sources, BNN Bloomberg said Coca-Cola was in "serious talks" with Aurora but no deal had been finalised.

 

"They're pretty advanced down the path" of doing a deal, one source was quoted as saying.

 

"It's going to be more of the 'recovery drink' category," the source added.

 

Aurora, in a separate statement, said it would not discuss business development initiatives until they were finalised, but added: "Aurora has expressed specific interest in the infused beverage space, and we intend to enter that market."

 

Coca-Cola's shares rose marginally in early trade on Monday.--BBC

 

 

 

Brexit report to consider workforce impact

A report considering the impact of Brexit on the UK labour market will be published by government advisers later.

 

The Migration Advisory Committee considered the impact of migration from the EU on a range of areas including wages and unemployment.

 

More than 400 businesses, industry bodies and government departments gave evidence to the report, which is due to make a number of recommendations.

 

It was asked to do the research in July 2017 by then Home Secretary Amber Rudd.

 

The committee's interim report, published in March, found that UK employers were "fearful" about what a future immigration system would look like after Brexit, with many viewing EU migrants as more motivated and flexible than UK-born workers.

 

Do we really know how many people come to the UK?

Taking stock of where we are with Brexit

Brexit: All you need to know

The review will help the government draw up an immigration bill as part of expected changes to the system when the UK leaves the EU next March.

 

It comes as latest figures have shown that net migration from the EU is at its lowest level since 2012.

 

The number of EU citizens coming to the UK "looking for work" decreased by a third (33%) from 55,000 in 2016 to 37,000 in the last year.

 

Overall net migration, the difference between the number of people coming to live in the UK for at least 12 months and those emigrating, was 282,000.

 

The government wants to cut overall net migration to the tens of thousands.

 

The Migration Advisory Committee has already suggested that international students in the UK should not be removed from targets to reduce migration.

 

Last month, the Confederation of British Industry said net migration targets should be scrapped after Brexit and replaced with a system that ensures people coming to the UK make a positive contribution to the economy.

 

The business group said the contribution of EU workers to the UK economy was "profoundly important and will be needed in the future", after the free movement of EU citizens comes to an end as part of Brexit.

 

It said EU citizens should be registered on arrival to the UK and restrict their visit to three months "unless they can prove that they are working, studying or are self-sufficient".--BBC

 

 

 

Soylent meal replacement gets UK launch

Meal replacement drink Soylent will launch in the UK on Thursday with a different formula to its US equivalent.

 

The firm has replaced seven ingredients and adjusted the mineral and vitamin content to comply with British regulations.

 

Soylent was withdrawn from Canada in 2017 after reports that some people felt sick after drinking it.

 

The firm said it was working with Canadian authorities to reinstate it.

 

The Silicon Valley start-up became the largest crowd-funded food project when it launched in the US in 2013.

 

It was marketed at busy professionals and the company originally suggested the product could replace meals regularly.

 

It is named after a fictional artificial food called soylent that was featured in the 1966 sci-fi novel "Make Room! Make Room!".

 

In the 1973 movie version - Soylent Green - it was revealed that soylent was made from dead people.

 

'Food void'

However the firm has now rebranded it as a more occasional meal, to replace what it calls "food voids" - times when a conventional meal is not possible because of time, logistics or money.

 

CNN Anchor Anderson Cooper recently revealed that he was trying to replace all of his meals with Soylent drinks.

 

Soylent chief executive Bryan Crowley said he had faced criticism from nutritionists about the product.

 

"Nutritionists have a tough job, their usual response is we would rather they eat fruit and veg," he told the BBC.

 

"But we've been saying that for years and it isn't working.

 

"We're not trying to replace the meals you have with family and friends, weekend brunch - we're not trying to compete in that area. What we're saying is, we cant change how busy you are but we can provide you something nutritious to consume when you are that busy."

 

Well if you like your drinks to taste slightly chalky with a hint of porridge then this could well be a lunch option for you.

 

The main ingredient - after water - is genetically modified soya protein, so the drink unsurprisingly tastes like a protein shake from the gym.

 

Of the three launch flavours - original, cacao and cafe mocha - cacao is probably the most recognisable as it's a bit like a chocolate milkshake... if you try not to think about it too much.

 

Does it fill you up? Well it did for a bit. At 400 calories per drink, it's a bit heavy to be classed as a snack, but my liquid lunch companion was running for the nearest sandwich bar after two hours and while I've resisted that temptation, I'm not sure I could face another one for dinner.

 

Competition

It is Soylent's first foray into Europe but it already faces competition from others such as Huel, a UK-based product that launched in 2015.

 

Kris Ringer replaces two meals per day with Huel and said he felt the balance of his diet had improved.

 

"I don't think I could go to a full replacement though - by the end of the day I'm longing for real food that I can actually chew," he said.

 

"I'm quite happy with Huel so don't think I'd make a switch [to Soylent] unless it turned out to be as effective and cost less."

 

Soylent will be sold in ready-to-drink form via Amazon, retailing at £39.99 ($52) for 12 bottles.

 

The minimum order of Huel powder is sold online for £50 and provides 28 meals.

 

Bryan Crowley said that having competition was healthy.

 

"People ask me about competition - we have the advantage that we are the original," he said.

 

"This was founded five years ago on the crazy concept of a life food hack. It started to create a movement, and to build any new behaviour you need a lot of brands coming on board and raising awareness."

 

'Food is key'

Dietician Priya Tew said meal replacements can be useful but should not be relied upon.

 

"Eating whole food is always better when possible as there is an element to the chewing and digestion process that is important to our systems and psychologically food is key for us too," she told the BBC.

 

"Food is a package of nutrients many of which we are not even aware of. Things like antioxidants and phytochemicals will not all be in the meal replacements, so eating a range of colourful food is the best way to nourish our bodies long term."--BBC

 

 

 

 

New 100 and 200 euro notes unveiled

The design for the new €100 and €200 bank notes has been unveiled, ahead of entering circulation in May next year.

 

Both notes have new security features which are aimed at making them more difficult to counterfeit.

 

The new notes are smaller than the current versions, meaning they will fit better into people's wallets, the European Central Bank (ECB) said.

 

The size meant the notes would also be handled easier by machines and subject to less wear and tear, it said.

 

The two notes are the last in the Europa series, which feature an image of the mythological Greek figure of that name.

 

ECB executive board member Yves Mersch said that more than a million cash machines would have to be adapted before the new notes go into circulation on 28 May in the 19 countries that use the shared currency.

 

The new notes are printed on pure cotton fibre paper and unlike the new Bank of England polymer notes do not contain traces of animal products.

 

When it emerged that the new Bank of England notes included small amounts of tallow, derived from animal waste products, it sparked a backlash from some vegans and religious groups.

 

 

The new European bank notes feature an updated map of Europe on the back, including the islands of Malta and Cyprus, the two countries which have joined the European Union since the first series of euro bank notes started being circulated in 2002.

 

The notes also have several new security features, including a "satellite" hologram of tiny euro symbols, which move around the number when the bill is tilted, as well as a shiny number on the bottom of the notes which changes colour from emerald green to deep blue.

 

Trying to avoid counterfeiting and making sure bank notes aren't used for criminal activities have been a key focus for the central bank. In 2016, it said that it would no longer produce the €500 note because of concerns it could facilitate illegal activity.

 

The UK asked banks to stop handling €500 notes in 2010 after a report found they were mainly used by criminals.

 

Despite a rise in card transactions, the ECB said that the demand for cash had continued to grow. Since the introduction of the euro in 2002, the number of banknotes in circulation in the euro area has tripled and now stands at 21 billion while the value of banknotes has reached almost €1.2 trillion, the ECB said.--BBC

 

 

 

No-deal Brexit would hit UK economy, says IMF

The International Monetary Fund has warned that a "no-deal" Brexit on World Trade Organization terms would entail "substantial costs" for the UK economy.

 

The IMF said that all likely Brexit scenarios would "entail costs", but a disorderly departure could lead to "a significantly worse outcome".

 

The challenges in getting a deal done remained "daunting", it said.

 

The IMF expects Britain's economy to grow by 1.5% in both 2018 and 2019 if a broad Brexit agreement is struck.

 

The predictions came in the IMF's latest annual assessment of the UK economy.

 

Christine Lagarde, the IMF's managing director, told a news conference at the Treasury in London: "Those projections assume a timely deal with the EU on a broad free trade agreement and a relatively orderly Brexit process after that.

 

"Any deal will not be as good as the smooth process under which goods, services, people and capital move around between the EU and the UK without impediments and obstacles."

 

Brexit: Where has the process got to?

Brexit: All you need to know

The Chancellor, Philip Hammond, said the government must listen to the IMF's "clear warnings".

 

He added: "The IMF are clear today that no deal would be extremely costly for the UK as it would also for the EU, and that despite the contingency actions we're taking, leaving without a deal would put at risk the substantial progress the British people have made over the past 10 years in repairing our economy."

 

The IMF warning comes as Theresa May told the BBC that MPs must choose between her proposed deal with the EU - or no deal at all.

 

Speaking to Panorama, the prime minister said that if Parliament does not ratify her Chequers plan, "I think that the alternative to that will be having no deal".

 

Mrs May said there needed to be "friction-free movement of goods" with no customs or regulatory checks between the UK and EU on the island of Ireland to avoid a hard border there.

 

A plan by Brexiteers to resolve the Irish border issue also came in for criticism from the prime minister, who said it would create a "hard border 20km inside Ireland".

 

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The IMF's Ms Lagarde said a "disorderly" or "crash" exit from the EU would have a series of consequences, including reduced growth, an increased deficit and depreciation of sterling, causing the UK economy to contract.

 

The IMF also said a no-deal outcome would affect other EU economies "to a lesser extent".

 

"The larger the impediments to trade in the new relationship, the costlier it will be," Ms Lagarde said. "This should be fairly obvious, but it seems that sometimes it is not."

 

She pointed out that countries tended to trade mostly with their neighbours: "I think geography talks very loudly."

 

Comparing this year's IMF analysis and Ms Lagarde's words with last December and there is a significant cooling of sentiment around the effects of Brexit.

 

The IMF is signalling that, with just over six months to go before Britain is scheduled to leave the EU, the very fact that "no deal" remains on the table is of economic concern.

 

When asked if she could see any "positives" coming from Brexit, Ms Lagarde repeated the long list of possible negatives.

 

"No," seemed to be her answer.

 

Read Kamal's blog in full

 

'Clear warnings'

Ms Lagarde said she "very much" hoped that the UK and the EU would strike a deal, describing herself as "a desperate optimist".

 

Recent UK economic data has shown a pick-up in growth. Earlier this month, the Office for National Statistics said the economy had grown by 0.6% over the three months to July - the fastest pace in almost a year.

 

The latest IMF prediction represents a slight upgrade for 2018. In July, the IMF said the UK economy would grow by 1.4% this year and 1.5% in 2019.--BBC

 

 

 

WEF: Robots 'will create more jobs than they displace'

Millions of jobs are likely to be displaced by automation but we have less to fear from robots than some might think, a report from the World Economic Forum has suggested.

 

The Swiss think tank predicts that robots will displace 75 million jobs globally by 2022 but create 133 million new ones - a "net positive".

 

It said advances in computing would free up workers for new tasks.

 

But others have warned there is no guarantee lost jobs will be replaced.

 

AI 'poses less risk to jobs than feared'

Bank warns on AI jobs threat

The WEF, which runs the famous Davos networking event, said that robots and algorithms would "vastly improve" the productivity of existing jobs and lead to many new ones in the coming years.

 

As a result we would see more data analysts, software developers and social media specialists, as well as job roles based on "distinctively human traits" such as customer service workers and teachers.

 

However, the think tank said the gains would come amid "significant disruption" as some roles become "increasingly redundant".

 

It sees robots swiftly replacing positions in accounting firms, factories and post offices, as well as secretarial roles and cashier work.

 

Amid this "significant shift" workers would need to be retrained to update their skills, it said.

 

It also urged governments to prepare safety nets for workers whose jobs are lost.

 

'Open question'

In August, Andy Haldane, the Bank of England's chief economist, warned robots could wipe out thousands of British jobs.

 

"The scale of job loss [in the fourth industrial revolution] is likely to be at least as large as that of the first three industrial revolutions," he said.

 

Mr Haldane said companies would have to expand in innovative ways to create new human jobs, but whether they will manage to is an "open question".

 

Others are more sanguine. In July, PwC predicted artificial intelligence would create as many jobs in the UK as it would displace over the next 20 years.

 

And in April, the OECD disagreed with an influential 2013 forecast by Oxford University that found about 47% of jobs in the US in 2010 and 35% in the UK were at "high risk" of being automated over the following 20 years.

 

The OECD instead put the US figure at about 10% and the UK's at 12% - although it did suggest many more workers would see their tasks changing significantly.--BBC

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


Hippo

AGM

Meikles

26/09/2018 12PM

 


Bindura

AGM

Chapman Golf Club, Eastlea

27/09/2018 9AM

 


CBZH

interim dividend of 0.5c per share record date

 

28/09/2018

 


Hippo

final dividend of 2c per share record date

 

28/09/2018

 


Star Africa

AGM

45 Douglas Road, Workington

28/09/2018 11AM

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

 


 

 


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