Major International Business Headlines Brief::: 24 April 2019

Wed Apr 24 08:05:45 CAT 2019

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Major International Business Headlines Brief::: 24 April 2019

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*  Tanzania eyes 10,000 MW power generation capacity by 2025

*  LME to ban metal tainted by child labour or corruption

*  South Africa's rand, bonds little changed, stocks set to open higher

*  Exports of four main Nigerian crude grades to rise in June - programmes

*  Kenyan shilling weakens slightly against the dollar

*  Egypt expects borrowing needs to hit $48 bln in fiscal 2019/20 - document

*  South Africa brings forward Eskom bailout to avert default

*  Morocco's annual inflation rises 0.8 percent in March

*  Saudi Arabia, UAE grant $3 billion of support to Sudan

*  Trump backs Harley Davidson on EU trade tariffs

*  Google 'retaliating against harassment protest organisers'

*  Twitter shares surge 17% as users rise

*  Tesla's Elon Musk expects 'robotaxis' to start in US next year

*  US vegan food-maker Beyond Meat eyes $1bn valuation

 <mailto:info at bulls.co.zw> 

Tanzania eyes 10,000 MW power generation capacity by 2025

DAR ES SALAAM (Reuters) - Tanzania aims to have six times its current power
generation capacity by 2025 through investment in thermal and renewable
energy, deputy energy minister Subira Mgalu told parliament on Tuesday.

The East African country boasts reserves of over 57 trillion cubic feet
(tcf) of natural gas, but faces periodic power shortages.

Investors have long complained that a lack of reliable power hurts business
in the country.

“Implementation of various power generation projects will increase the
capacity of our national power grid from 1,602 megawatts presently to 10,000
megawatts by 2025,” Mgalu told parliament.

Tanzania has said it plans to export surplus electricity to energy-starved
nations in eastern and southern Africa once it has boosted its generation
capacity.

“We need to have abundant and reliable power from an energy mix that
includes hydropower, natural gas, solar and wind,” Mgalu said.

The government awarded a tender last year to a joint venture of Egyptian
companies, El Sewedy Electric Co and Arab Contractors, to build a $3 billion
hydroelectric plant at Stiegler’s Gorge that will produce 2,100 MW upon
completion in three years time.

Conservationists oppose construction of the power plant in a world heritage
site and an independent study has suggested the cost could rise to up to
$9.85 billion.

 <mailto:info at bulls.co.zw> 

LME to ban metal tainted by child labour or corruption

LONDON (Reuters) - The London Metal Exchange (LME) could ban or delist
brands that are not responsibly sourced by 2022 under an initiative launched
on Tuesday to help root out metal tainted by child labour or corruption.

But the LME, seeking to avoid overly punishing small mining brands to the
benefit of larger miners such as Glencore, said it would not single out
cobalt and tin for accelerated auditing.

Cobalt, a key ingredient in the batteries that power electric vehicles, is
mined by small, artisinal operations mainly in the Democratic Republic of
Congo, where supply chains are not strictly monitored.

“It would take us longer to take action against cobalt and tin brands
because we would give them longer to comply,” LME chief executive Matt
Chamberlain said on a call with reporters.

The proposal is the largest step yet by the LME, the world’s biggest market
for industrial metals, to clean up global supply chains and marks a shift
from the exchange’s traditional role of requiring its suppliers to meet only
metallurgical standards.

“Global consumers rightly demand action on responsible sourcing – and our
industry must listen,” Chamberlain said in a statement.

Under the new rules, all LME brands would by the end of 2020 undertake a
“Red Flag assessment” based on guidelines set by the Organisation for
Economic Co-operation and Development (OECD).

Based on those findings, the exchange would by 2022 audit brands identified
as higher-risk with a view to banning them if they do not comply with
requirements on responsible sourcing.

In a consultation paper in October, the LME said it wanted to ban cobalt
brands that traded at a significant discount against prices gathered by
trade publication Fastmarkets MB.

The discount was created by concerns that some providers of cobalt to the
exchange may have used child labour.

Brands would be forced to publish fully all of their supply-chain
information by 2024, the LME said.

A supply-chain investigator at non-governmental organisation Global Witness,
Sophia Pickles, welcomed the LME’s increased focus on the reporting of
financial crime and corruption risk.

Firms should also be encouraged to disclose environmental and climate
concerns, Pickles said.

NGOs including Global Witness last year pressured the LME to hold off on
banning cobalt brands seen as tainted and work with them instead to ensure
compliance.

South Africa's rand, bonds little changed, stocks set to open higher

JOHANNESBURG, (Reuters) - South Africa’s rand was little changed in early
trade on Tuesday with investors refraining from making large bets as markets
reopened after Monday’s holiday.

At 0642 GMT, the rand traded at 14.1550 versus the dollar, 0.04 percent
firmer than its overnight close in New York.

South African markets were closed on Monday for a public holiday.

Government bonds were also flat, with the yield on benchmark 2026 paper at
8.465 percent.

Stocks were set to open higher at 0700 GMT, with the Johannesburg Stock
Exchange’s Top-40 futures index up 0.45 percent.

Exports of four main Nigerian crude grades to rise in June - programmes

LONDON (Reuters) - Exports of Nigeria’s four main crude oil grades are set
to jump in June to 895,000 barrels per day (bpd) from 740,000 bpd in May,
according to preliminary loading programmes.

Nigerian producer Aiteo said it declared force majeure over the weekend on
one of the two trunk lines transporting Bonny Light to the export terminal
after a fire. It was not immediately clear how the rate of exports would be
affected.

The following is a table showing the rate of exports of the four key grades:

Grade June (bpd) May (bpd)

Bonga 190,000 153,000

Bonny 222,000 184,000

Light

Forcados 230,000 127,000

Qua Iboe 253,000 276,000

Kenyan shilling weakens slightly against the dollar

NAIROBI (Reuters) - The Kenyan shilling weakened slightly against the dollar
on Tuesday, driven by demand from the energy sector and merchant importers
as trading resumed from Easter holiday, traders said. At 0945 GMT,
commercial banks quoted the shilling at 101.45/65 per dollar, compared with
101.35/55 at Thursday’s close.

Egypt expects borrowing needs to hit $48 bln in fiscal 2019/20 - document

CAIRO (Reuters) - Egypt expects its borrowing needs to reach 820.7 billion
Egyptian pounds ($48 billion) in fiscal 2019/20, a 26 percent increase from
the previous year, the draft budget seen by Reuters showed.

The draft showed domestic borrowing would increase by 45 percent to 725.2
billion pounds, while foreign borrowing would decline by 36 percent to 95.6
billion.

Egypt expects to issue 435.1 billion pounds worth of treasury bills, against
350.8 budgeted for the 2018/2019 fiscal year, a 24 percent increase, the
draft showed.

It also plans a 93 percent increase in treasury bond issuance to 290.1
billion pounds from 150.3 billion.

Egypt also aims to review the general rate of its value-added tax, the draft
said, introduced as part of reforms tied to an IMF loan. It will review the
list of exemptions in the 2019/20 fiscal year.

“There is no intention to adjust the general price of the value-added tax in
the coming period at all,” an official at the Finance Ministry told Reuters
on Monday.

“The matter will be studied in the coming months and year. There is no
specific vision or intention to adjust at the moment,” the official added.

The document also said Egypt aims to issue its first green bonds in the
2019/20 fiscal year to finance environment-friendly projects.

It further aims to raise tax revenue to 865.5 billion pounds from 759.6
billion, a 13 percent increase, the document showed.

($1 = 17.1375 Egyptian pounds)

South Africa brings forward Eskom bailout to avert default

JOHANNESBURG (Reuters) - South Africa’s government has had to bring forward
the bailout of state power firm Eskom, after it rushed 5 billion rand ($355
million) to the struggling utility earlier this month to avert a default and
said more cash could be needed soon.

Eskom supplies more than 90 percent of electricity in Africa’s most advanced
economy but is grappling with cashflow problems and a debt mountain which it
is struggling to service.

The government in February promised Eskom a 23 billion rand a year bailout
over the next three years, but it only expected to start giving the
cash-strapped utility the first tranche of funds between August and October
this year.

But by the end of March, Eskom was experiencing difficulties raising
funding, according to a finance ministry report to parliament seen by
Reuters, prompting Finance Minister Tito Mboweni to authorise the cash
transfer on April 2.

The fact that the first tranche of the bailout had to be brought forward
highlights the precariousness of Eskom’s financial position, which has been
exacerbated by spiralling diesel and maintenance costs.

“In order to avert a default by Eskom on its obligations, on 2 April 2019,
the Minister of Finance ... authorised the payment of 5 billion rand,” the
report to parliament said, adding Eskom could need another government cash
injection before April 30.

A finance ministry spokesman confirmed Mboweni had authorised the transfer
of money to Eskom.

Early this month, Public Enterprises Minister Pravin Gordhan said the
highest levels of government were considering a variety of additional
financial support measures for Eskom, beyond the bailout announced in
February. [L8N21L4TZ]

Energy experts say the bailout is insufficient to make Eskom financially
sustainable in the long term.

“Eskom does not anticipate generating sufficient internal cash to pay all of
its maturing obligations at any point in time over the next five years,” the
finance ministry report to parliament dated April 16 said.

The country’s largest opposition party, the Democratic Alliance (DA), called
for parliament’s finance committee to reconvene to discuss the crisis at
Eskom, which has taken centre stage before the country’s national elections
in May. Parliament has been dissolved ahead of the elections.

“There is clearly an urgent need for complete transparency about the real
financial status of Eskom and about the inevitability of further massive
cash bailouts after the elections on the 8th of May,” the DA said in a
statement.

($1 = 14.0584 rand)

Morocco's annual inflation rises 0.8 percent in March

RABAT (Reuters) - Morocco’s annual inflation index rose by 0.8 percent in
March, the high commission for planning said on Monday.

Month-on-month the index was unchanged, the agency said in a statement.

The central bank has said it expects inflation to drop to 0.6 percent in
2019 from 1.9 percent in 2018 before picking up again to 1.1 percent in
2020.

Saudi Arabia, UAE grant $3 billion of support to Sudan

DUBAI (Reuters) - Saudi Arabia and the United Arab Emirates have granted
Sudan $3 billion in support, Saudi state news agency SPA said on Sunday.

The grant includes a $500 million deposit into Sudan’s central bank, while
the rest will be in the form of food, medicine, and petroleum products, SPA
said.

Trump backs Harley Davidson on EU trade tariffs

Donald Trump has vowed to reciprocate against "unfair" European Union trade
duties on Harley Davidson motorbikes.

The US President had previously criticised the US bike maker for its plans
to shift American production overseas to avoid EU tariffs.

But on Tuesday, after Harley blamed the 31% duties for a large drop in
profits, Mr Trump appeared to back the firm.

Responding to comments on Fox Business on Twitter, he said the duties were
"so unfair", adding: "We will Reciprocate!"

The broadside comes ahead of talks aimed at calming trade tensions between
the EU and the US.

Last June, the EU imposed tariffs on a raft of US-made goods in retaliation
for duties the White House had placed on imported steel and aluminium.

It meant tariffs on Harleys climbed from 6% to 31%, and they are set to rise
further in 2021.

On Tuesday, the US firm said that various trade spats between the US and its
partners would cost it between $100m (£77m) and $120m in 2019.

This was partly because of Chinese tariffs, which have increased to 55% as a
result of the trade war between the world's two biggest economies.

Trump backs Harley-Davidson boycott

Harley to make more bikes outside the US

But the firm said "the big impact" would be from the EU duties, adding they
had also contributed to a 27% fall in profits to $127.9m in the first
quarter.

Analysts say the company's trade worries compound years of fading interest
in the brand, whose heyday was in 1960s and 70s.

President Trump and the head of the European Commission, Jean-Claude
Juncker, agreed last year that they wanted to reduce trade barriers.

And earlier in April the EU approved plans for formal trade talks with the
US.

But earlier this year news reports suggested that the US was considering new
tariffs on EU imported vehicles.

Mr Juncker later said Mr Trump had assured him there were no plans to do
this "for the time being", but vowed an immediate response if the tariffs
went ahead.--BBC

Google 'retaliating against harassment protest organisers'

Organisers of a series of walkouts in protest at Google's treatment of women
have said they have since become victims of retaliation by the company.

In November, 20,000 employees walked out of their offices demanding several
key changes in how sexual misconduct allegations were dealt with at Google.

Now, in an internal email published by Wired, two of the employee activists
behind the protest accuse Google of retaliating against several organisers.

Google denies retaliating in any way.

Google staff walk out over women's treatment

Employee activist Claire Stapleton, said she had been demoted from her
position as marketing manager since the protests.

"My manager started ignoring me, my work was given to other people, and I
was told to go on medical leave, even though I'm not sick," she wrote.

"Only after I hired a lawyer and had her contact Google did management
conduct an investigation and walked back my demotion, at least on paper.

"While my work has been restored, the environment remains hostile and I
consider quitting nearly every day."

'Silence women'

Meredith Whittaker, who co-signed the email, said her role had also been
"changed dramatically".

In a separate controversy at the tech company, Google set up an external AI
ethics council this spring and invited Kay Cole James to sit on the panel.

Ms James is the president of the Heritage Foundation, a conservative think
tank, and an outspoken opponent of equal-rights laws for LGBT people.

More than 2,000 employees signed a statement in protest and Ms Whittaker
tweeted publicly that Google's inclusion of Ms James was "appalling".

Google decided to scrap the council just one week after launching it.

Shortly afterwards, Ms Whittaker writes in the email, she was told that "to
remain at" Google she would have to give up her role on the AI Now
Institute, a research centre at New York University that she co-founded, and
"abandon" her work on AI ethics.

Their email adds: "Our stories aren't the only ones. Google has a culture of
retaliation, which too often works to silence women, people of colour, and
gender minorities.

"If we want to stop discrimination, harassment, and unethical
decision-making, we need to end retaliation against the people who speak
honestly about these problems."

A Google representative said: "We prohibit retaliation in the workplace and
investigate all allegations."

"Employees and teams are regularly and commonly given new assignments, or
reorganised, to keep pace with evolving business needs.

"There has been no retaliation here."--BBC

Twitter shares surge 17% as users rise

Shares in Twitter have surged more than 17% after the firm reported rising
numbers of users and higher revenues, days after its chief executive
promised to improve how it tackles online abuse.

The company's revenue rose to $787m (£605m) in the first quarter, up 18%
from a year earlier.

The number of daily active users rose 11% to 134 million.

The results prompted criticism from US President Donald Trump, who accused
the platform of political "discrimination".

The firm's founder, Jack Dorsey, has said he regrets that Twitter's design
encourages "outrage".

He told a TED conference in Vancouver last week that he was ready to make
changes to the way the site operates to try to make it more conversational
and to discourage abuse and misinformation.

Twitter boss under spotlight at TED

Journalist calls on execs to discuss tech's role

Social media companies are coming under increased pressure to police the
content of their sites more closely, following scandals over mental health,
user privacy, hate speech and political campaigning.

Announcing Twitter's latest results, Mr Dorsey said: "We are taking a more
proactive approach to reducing abuse and its effects on Twitter."

The firm was trying to reduce the burden on victims by using artificial
intelligence to spot abusive tweets and to take them down before they were
reported, he said.

"We're also continuing our work to make Twitter more conversational via the
launch of our public prototype app (twttr), with the end goal of making
conversation on Twitter feel faster, more fluid and more fun," said Mr
Dorsey.

Hindsight

Last week at the TED conference, Mr Dorsey said the firm might demote likes
and follows, adding that in hindsight he would not have designed the
platform to highlight these.

"We've seen harassment, manipulation, misinformation which are dynamics we
did not expect 13 years ago when we founded the company," he told TED
curator Chris Anderson.

Over the course of last year the platform's monthly users fell from 336
million to 321 million, which Twitter said was due to a purge of abusive and
fake accounts.

But in the most recent quarter monthly users rose again to 330 million.

Trump criticism

On Tuesday, President Trump, who often uses Twitter to make policy
announcements, said he agreed with comments on Fox Business that "The best
thing ever to happen to Twitter is Donald Trump".

But he added: "They don't treat me well as a Republican. Very
discriminatory," and called for "more, and fairer" social media companies.

Twitter said in response: "We enforce the Twitter rules dispassionately and
equally for all users, regardless of their background or political
affiliation. We are constantly working to improve our systems and will
continue to be transparent in our efforts."--BBC

Tesla's Elon Musk expects 'robotaxis' to start in US next year

Elon Musk, the chief executive of electric car company Tesla, has said he
expects the firm to have self-driving "robotaxis" on the road by 2020.

The entrepreneur made the pledge as he announced an improved microchip for
its driverless vehicles.

Mr Musk told investors he expected regulators to approve ride-hailing in
some areas for autonomous vehicles.

He added: "I feel very confident in predicting autonomous robotaxis next
year."

Mr Musk said he expected the scheme to operate on a model similar to that of
Uber or Airbnb.

The company unveiled computer hardware for what it said was "full
self-driving" capabilities in the form of the new microchip.

There are still technical and legal challenges ahead for driverless cars,
which currently are not deemed as sophisticated or roadworthy as cars with
drivers, nor safe enough for public roads.

Mr Musk said its custom-designed chip was the best available and a
significant milestone in self-driving.

Tesla's vehicles are not yet at the standard of autonomy needed to earn the
tag "self-driven".

Level 4 autonomy means a vehicle can drive itself with a human on standby,
with level 5 the standard needed before it can be called truly autonomous of
human agency.

No Tesla car is at either level so far.

Mr Musk had promised previously that self-driving cars would be on the road
in 2018.--BBC

US vegan food-maker Beyond Meat eyes $1bn valuation

US plant-based meat-maker Beyond Meat is raising money by issuing shares
which will value the firm at over $1bn in its stock market debut.

The firm, which made its UK launch in November, expects to offer 8.75
million shares priced between $19 and $21 each.

At the upper price range, the flotation would value the company at $1.2bn.

Beyond Meat says it wants to tap into the growing popularity of veganism and
hopes to boost research and development and expand manufacturing facilities.

The company, which is backed by investors including US meat producer Tyson
and Microsoft founder Bill gates, expects to receive gross proceeds of about
$175m from the offering.

Its valuation makes it a so-called "unicorn firm".

The term, coined by venture capital investor Aileen Lee, refers to privately
owned tech start-ups valued at $1bn (£686m) or higher.

Originally named after the mythical creatures, because they were so rare,
the number of such firms has rapidly increased and includes taxi-hailing app
Uber, ride-sharing start-up Lyft and online scrapbook company Pinterest.

Beyond Meat's Beyond Burger was originally due to be introduced into 350
Tesco stores last August, but was delayed by three months because of supply
issues.

It has entered a crowded UK market with more suppliers moving into
supermarkets, some of whom are producing their own-label vegan foods.

On its website, Beyond Meat says: "Why do you need an animal to create meat?
Why can't you build meat directly from plants? It turns out that you can. So
we did."

Veganism is becoming more popular in Great Britain. Research conducted by
the Vegan Society in 2016 estimated there were around 540,000 vegans across
the country, compared with around 150,000 in 2006.

Supermarket chains in the UK are stocking more vegan options, with Waitrose
starting a dedicated vegan section in more than 130 shops last year and
Iceland reporting sales of its plant-based foods rising by 10% in a
year.--BBC

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Workers Day

01 May  2019

Africa Day

25 May 2019

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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opinions expressed and recommendations made are subject to change without
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