Major International Business Headlines Brief::: 25 April 2019

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Major International Business Headlines Brief::: 25 April 2019

 


 

 


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*  Ghosn: Tokyo court grants $4.5m bail to former Nissan boss

*  Premier League wage bill surges to £2.9bn

*  Belt and Road: China pushes Belt and Road to world leaders

*  Facebook sets aside $3bn for privacy probe

*  What the Airbnb surge means for UK cities

*  Tesla reports $702m quarterly loss

*  Boeing uncertain how 737 crashes will hit profits

*  Huawei row: UK to let Chinese firm help build 5G network

*  Wanted: New Bank of England boss

*  Easyjet bans nuts on all flights to protect passengers

*  Egypt's economy seen growing 5.5 pct in year to end of June

*  Nigeria's oil minister, Saudi Aramco discuss investment options

*  MTN converts Nigerian unit to public company before planned listing

*  BMW to buy cobalt direct from Australia, Morocco for EV batteries

*  Brazilian miner Vale files $2 bln lawsuit over Guinea project

*  South Africa's Tongaat to restate prior results after accounting review

*  South Africa's 2018/2019 maize crop seen down 15 percent on drought

 


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Ghosn: Tokyo court grants $4.5m bail to former Nissan boss

A Tokyo court has granted former Nissan boss Carlos Ghosn bail set at 500
million yen ($4.5m; £3.5m), paving the way for his release from custody.

 

He faces four charges in Japan over allegations of financial misconduct.

 

It will be the second time Mr Ghosn, who denies any wrongdoing, has been
released on bail.

 

The 65-year-old was initially freed last month, then re-arrested on 4 April
on a fresh charge.

 

His lawyers applied for bail on Monday after Mr Ghosn was charged with
aggravated breach of trust.

 

That indictment relates to allegations that the auto boss made a
multi-million-dollar payment to a Nissan distributor in Oman, and that as
much as $5m was funnelled to an account controlled by Mr Ghosn.

 

He had previously been charged over allegations he under-reported his salary
and sought to shift personal losses to Nissan.

 

No details on the conditions of his bail were immediately given, but his
movements and access to communications are expected to be limited.

 

As part of his previous bail conditions, a 24-hour surveillance camera had
to be installed at the entrance of his court-approved permanent residence.

 

He was restricted to using a sole computer, in his lawyer's office, and one
mobile phone.

 

Mr Ghosn was first arrested in November and spent 108 days in custody. He
was released after posting $9m bail.

 

The fall from grace for the industry titan has attracted global attention.
The case has also put a spotlight on fighting within the carmaker alliance
and on Japan's legal system.

 

Mr Ghosn was the architect of the alliance formed between Japan's Nissan and
French carmaker Renault, and brought Mitsubishi on board in 2016.

 

He is credited with turning around the fortunes of Nissan and Renault over
several years.

 

Earlier this month Mr Ghosn said the allegations were a plot and conspiracy
against him, accusing Nissan executives of "backstabbing".--BBC

 

 

 

 

 

 

 

 

 


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Premier League wage bill surges to £2.9bn

Premier League clubs' wage bill rose by 15% to £2.9bn in the 2017-18 season,
hitting profits - despite them making record revenue during the campaign.

 

Having five teams each reaching at least the last 16 of the Champions League
helped push revenue to £4.8bn, according to analysis from Deloitte.

 

But the high transfer fees paid out by clubs also helped push up wages.

 

That brought profit before tax down to about £400m for the clubs, a
reduction from about £500m a year earlier.

 

Tim Bridge, a director in the Sports Business Group at Deloitte, said: "The
increased wage expenditure was expected given the busy transfer market in
the 2017-18 season, with two record transfer windows driving estimated
Premier League gross spend of £1.9bn."

 

However, he said, broadcast fees are only likely to rise by a small amount
in the next three years.

 

"With the emphasis now on clubs to generate revenue growth from sources
other than central broadcast distributions, it may be that we see the levels
of pre-tax profit diminish over the next few years," he said.

 

The "big six" clubs of Arsenal, Chelsea, Liverpool, Manchester City,
Manchester United and Tottenham accounted for 89% of the league's pre-tax
profits, according to financial data firm Vysyble.

 

They earned more than £53.4m a week between them, up from £48.4m the
previous season, while the other 14 sides made a combined £39.4m a week,
down £200,000 on the year before.

 

Premier League clubs paid out more than £260m to football agents in the 12
months to the end of January 2019, an increase of £49m on the previous year,
according to documents released by the Football Association.

 

Liverpool were the highest-spending club in the top flight, paying £43m to
agents in that period.

 

Chelsea (£26m) and Manchester City (£24m) were the next biggest spenders.

 

Fees to agents went up despite spending on transfers falling by more than
£500m when compared with the previous season.--BBC

 

 

Belt and Road: China pushes Belt and Road to world leaders

World leaders are gathering in Beijing from Thursday for a summit on China's
Belt and Road initiative amid growing criticism of the project.

 

The sweeping infrastructure project aims to expand global trade links.

 

The initiative has funded trains, roads, and ports in many countries, but
has left some saddled with debt.

 

Some see it a bold bid for geopolitical influence, with the US particularly
critical of China's so-called "debt diplomacy".

 

At the first day of the forum in Beijing, Chinese Finance Minister Liu Kun
said China aims to make the Belt and Road initiative sustainable and to
prevent debt risks.

 

Leaders from 37 countries and dozens of officials are due to attend the
three-day summit, including Russian President Vladimir Putin and Italian
Prime Minister Giuseppe Conte.

 

Italy recently became the first developed economy to sign up to China's Belt
and Road programme, raising concerns among its allies.

 

Western governments, and particularly the US, are increasingly wary of
China's growing influence.

 

The US, which has fought a trade war with China over the past year, has been
particularly critical of the project.

 

Vice President Mike Pence said in a speech last year China was using "debt
diplomacy" to expand its influence around the world.

 

Debt trap?

Other countries that are set to benefit from the project also seem to be
growing more cautious.

 

Sri Lanka, Malaysia and Pakistan have all expressed concerns about the
programme. Recipient countries worry about debt accumulation and increased
Chinese influence at home.

 

Sri Lanka has been particularly affected - it had to hand over control over
of a port to China in 2017 to help repay foreign loans.

 

Tom Rafferty, China economist at The Economist Intelligence Unit, said China
is using this week's summit to "reposition and, it hopes, revive the
initiative after it lost its way in 2018 amid project delays and a slowdown
in associated lending."

 

Mr Rafferty said the Chinese government "wants to convince the international
community that the Belt and Road Initiative is inclusive and policy
concessions in areas such as debt sustainability" are likely.--BBC

 

 

 

Facebook sets aside $3bn for privacy probe

Facebook has said it will set aside $3bn (£2.3bn) to cover the potential
costs of an investigation by US authorities into its privacy practices.

 

While it has provided for a heavy toll from the investigation by the US
Federal Trade Commission, the final cost could be $5bn, it said.

 

The social media giant also said total sales for the first three months of
the year leapt 26% to $15.08bn, narrowly beating market expectations.

 

Monthly users rose 8%, it said.

 

That rise takes the number of users to 2.38 billion.

 

"We had a good quarter and our business and community continued to grow,"
founder and chief executive Mark Zuckerberg said.

 

"We are focused on building out our privacy-focused vision for the future of
social networking, and working collaboratively to address important issues
around the internet."

 

Shares rise

The shares are up by nearly 40% in the year to date, far outperforming the
broader market, and were up nearly 5% in late trading on Wall Street.

 

Facebook is facing a probe over the Cambridge Analytica data scandal,
however no findings have yet been published.

 

Facebook was labelled "morally bankrupt pathological liars" by New Zealand's
privacy commissioner this month after hosting a livestream of the
Christchurch attacks that left 50 dead.

 

In an interview after the attacks, Mr Zuckerberg refused to commit to any
changes to the platform's live technology, including a time delay on
livestreams.

 

Facebook, which owns Instagram, last week admitted that millions more
Instagram users were affected by a security lapse than it had previously
disclosed. It had mistakenly stored the passwords of hundreds of millions of
users without encryption.--BBC

 

 

 

What the Airbnb surge means for UK cities

Properties available to book on Airbnb have rocketed in a number in major UK
cities, leading to fears of "hollowed out communities" as tourists flock in.

 

Data analysed by the BBC suggests that listings in Edinburgh doubled in
three years, and shows a fourfold increase in spaces in London since 2015.

 

Edinburgh City Council has called for licensing and London councils want a
registration scheme for hosts.

 

Airbnb said it led the way on "clear and proportionate" rules.

 

"Airbnb is the only platform that voluntarily works with UK cities to help
hosts share their homes, follow the rules and pay tax. Other platforms and
providers need to step up and follow our lead," the company said.

 

"[The platform] allows local families and businesses to benefit from
visitors to their communities."

 

How many properties are listed?

Nearly 80,000 rooms or homes in London are listed on Airbnb - more than any
other UK city, according to figures from housing advocacy site Inside Airbnb
analysed by the BBC.

 

Just over 12,000 are listed in Edinburgh, but the effect is greater than in
London as this accounts for a much bigger proportion of the city's property
and population.

 

Edinburgh's 12,000 listings work out to around one Airbnb property for every
42 residents, while London's Airbnb market equates to one listing per 112
residents.

 

Much of this accommodation is centred around Edinburgh's Old Town - a huge
draw for tourists especially during the annual Fringe festival.

 

Airbnb said its activities had boosted the Scottish economy by £1.5m a day,
and the UK economy as a whole by £3.5bn last year.

 

One result has been concern among locals and politicians of a squeeze on
housing for residents, the behaviour of some visitors in residential blocks,
and differing tax treatment for traditional hotels and guesthouses.

 

Examples of anti-social behaviour in "party flats" have been highlighted by
campaigners for greater regulation.

 

They included loud, late-night noise affecting one young woman's exam
preparation, and an amorous couple bursting into the home of a resident aged
in her 80s before realising they had the wrong flat.

 

Councils say it is expensive and time-consuming to tackle such problems with
their existing powers. They can only do so after complaints, rather than
proactively.

 

What Airbnb really does to a neighbourhood - the picture worldwide

Council leader sets out Airbnb licensing wish list

"Short term lets are having a terrible impact. They are hollowing out
communities, both in the city centre and increasingly across Edinburgh.
Residents are putting up with high levels of anti-social behaviour and, very
worryingly for us, we believe there is a huge impact on housing supply,"
said Councillor Kate Campbell (SNP), housing convenor at Edinburgh City
Council.

 

"Housing in Edinburgh is under enormous pressure and we need to take every
action we can to protect supply and keep homes affordable for residents, as
well as protecting communities."

 

The Scottish government has been asked to consider a licensing scheme -
allowing for checks, safety requirements, and the potential for a cap on
numbers. Housing Minister Kevin Stewart (SNP) said it was considering what
measures could be required, which would be put to consultation "to ensure we
get the balance of short-term lets right in Scotland". He said there would
be a further announcement within a week.

 

Airbnb said it took action when alerted to rare cases of bad behaviour,
pointed out that hosts are subject to income and council taxes, and said it
welcomed regulation.

 

However, it also argued that its growth had little effect on the
availability of homes for locals to buy or rent, highlighting various
studies which had shown that house building had not kept up with demand, and
had pushed up prices as a result.

 

It said entire home listings on Airbnb represented less than 0.6% of the
available housing stock in Scotland, and some listings on its site were bed
and breakfasts, or small hotels, rather than residential property.

 

'Trendy' Shoreditch on the map

One of the most popular areas for Airbnb listings in the country is
Shoreditch, in London. Its reputation for a thriving nightlife and cultural
scene means many listings in the area advertise their "trendy" location.

 

The result is the common sight of visitors "hanging around with Google Maps
on their phones", trying to find their accommodation which could be good for
trade, according to local trader Phil Blackman.

 

Mr Blackman sells shoes just off Brick Lane and says Airbnb has encouraged
people to come to the area.

 

"It is good value for money for them, and they have got to stay somewhere,"
he said.

 

He argued that people working in finance in the City and living there for
only a year or two, while offering little to the area, were more responsible
for any loss of community spirit.

 

The debate is reflected in one piece of graffiti. "Tourist go home," it
says, but underneath someone has added: "But we love this place".

 

Isn't this just a good use of spare rooms?

Many tourists applaud Airbnb for the opportunity to visit cities without
paying large city hotel rates. Many homeowners join the chorus, saying the
income from occasionally letting a spare room helps pay the bills.

 

However, concerns have been raised that landlords have shifted from offering
long-term tenancies to these short-term lettings, restricting supply for
people who want to live and work in these cities and putting up the cost of
rent as a result.

 

Nearly half of listings come from hosts with more than one property, and in
London, 24% of listings are by hosts with five or more sites. It is a
similar picture in Manchester and Bristol, according to the Inside Airbnb
data.

 

One per cent of hosts control 17% of the London's Airbnb market.

 

In Bristol and Edinburgh, 1% of hosts are responsible for 11% of listings,
and in Manchester it is 10%.

 

In London, there are 11 Airbnb hosts with more than 100 listings each.

 

Eight of the 11 are listed with human-sounding host names, like "Sally",
offering 279 listings, "Veronica" (195), and "Emily" (179).

 

Airbnb argued that all three identified themselves, basically as property
managers. It said hosts may manage the listing process on behalf of a number
of different individuals.

 

Do limits work?

A 90-day a year short-term let limit for whole homes has been in operation
in London since 2015. Owners wishing to let for longer may require planning
permission for a "change of use" from their local council.

 

Only six changes from a home to a hotel have been approved since the limit
was introduced, according to Freedom of Information requests the BBC sent to
32 London boroughs.

 

Airbnb is currently the only platform to have voluntarily implemented the
90-day limit automatically on its platform.

 

The Mayor of London, Labour's Sadiq Khan, wrote in March 2017 to six other
online short-term letting platforms operating in London - Veeve, One Fine
Stay, Wimdu, Booking.com, HomeAway and Airsorted - urging them to follow
Airbnb's lead.

 

Homeaway and TripAdvisor have committed to introducing a cap in the future,
but other providers have not. This 90-day rule can be easy to flout, London
councils told the BBC in 2017. The Mayor of London said on Tuesday that the
law was "near-impossible for councils to enforce".

 

Mr Khan has now called on the government to introduce a new registration
system for anyone wanting to rent out a property for less than 90 days a
year - to make it clear who is operating in this sector.

 

Airbnb is supporting this idea. It said it had a team that worked to
prevent, detect, and tackle attempts to avoid night limits, and suggested
other providers had failed to follow suit.

 

Outside London, planning is more of a grey area. If the property is
primarily a home, with a room to let, then planning permission is probably
not needed. A planning authority can determine whether there has been a
material change of use.

 

A certification scheme for all types of short-term accommodation is
operating in Northern Ireland - the only part of the UK which has one.--BBC

 

 

 

 

Tesla reports $702m quarterly loss

Tesla reported a loss of $702m for the first three months of the year and
predicted another loss for the three months after.

 

The electric car and battery maker said it would return to profit in the
third quarter.

 

It ended March with $2.2bn in cash, a reduction of $1.5bn in three months,
largely down to it repaying a $920m bond.

 

The firm said it still plans to deliver 360,000 to 400,000 vehicles in 2019.

 

"As the impact of higher deliveries and cost reduction take full effect, we
expect to return to profitability" in the third quarter "and significantly
reduce our loss" in the second quarter, the company said in a statement.

 

"Given the less than glowing trend for profitability in car manufacturing,
it's perhaps no surprise the company has sought to turn attention back to
technology and other potential sources of revenue," said Nicholas Hyett, an
equity analyst at Hargreaves Lansdown.

 

Yesterday, Tesla chief executive Elon Musk said he expected 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."--BBC

 

 

 

Boeing uncertain how 737 crashes will hit profits

Boeing has said it still does not know how the crisis over the safety of its
737 Max 8 jets will affect its profits.

 

In its latest set of results, Boeing said that uncertainty over when the
plane would be allowed to fly again meant it could not forecast profits for
this year.

 

A fall in 737 deliveries has already led to a $1bn drop in revenues.

 

In March, a Max 8 belonging to Ethiopian Airlines crashed, killing all 157
passengers and crew.

 

It was the second crash involving a Max 8 jet in five months. The two
disasters prompted aviation regulators round the world to ground the
aircraft.

 

"Due to the uncertainty of the timing and conditions surrounding return to
service of the 737 Max fleet, new guidance [on profits] will be issued at a
future date," Boeing said in its first quarter results.

 

Can Boeing rebuild trust in the 737 Max?

Pilot explains Boeing's anti-stall system

Boeing is temporarily cutting production of the 737 airliner from 52 planes
a month to 42 from this month.

 

Despite the drop in production Boeing has not laid off staff and is
maintaining order levels with many suppliers, all of which is keeping costs
high. Meanwhile, some 50 deliveries of new 737 Max planes have been
withdrawn.

 

The worldwide fleet of 737 Max planes totalled 387 aircraft at the time of
the grounding.

 

Boeing is developing new software for the jet's Manoeuvring Characteristics
Augmentation System (MCAS), an anti-stall system which has come under
scrutiny since the crashes.

 

It said last week it was making "steady progress" on the path to certifying
a software update which had been put through 135 test and production
flights.

 

Chairman and Chief Executive Dennis Muilenburg said: "We have great
confidence in the update of the software and with the test flights that have
occurred. I have personally been on two of those flights and I have seen the
confidence that the team has in the system."

 

Boeing said on Wednesday it expects a certification flight with the US
Federal Aviation Administration in the "near term".

 

Boeing's commercial aircraft division managed to offset the impact of the
Max 8 groundings by increasing production of its 787 planes from 12 a month
to 14. Even so, the division still saw a 9% fall in revenue to $11.8bn from
$12.9bn.

 

Boeing's net earnings in the first three months of the year were 13% lower
at $2.15bn, reflecting a one-third drop in deliveries of the Max 8.--BBC

 

 

 

Huawei row: UK to let Chinese firm help build 5G network

The government has approved the supply of equipment by Chinese telecoms firm
Huawei for the UK's new 5G data network despite warnings of a security risk.

 

There is no formal confirmation but the Daily Telegraph says Huawei will
build "non-core" components such as antennas.

 

The US wants its allies in the "Five Eyes" intelligence grouping - the UK,
Canada, Australia and New Zealand - to exclude the company.

 

Huawei has denied that its work poses any risks of espionage or sabotage.

 

But Australia has already said it is siding with Washington - which has
spoken of "serious concerns over Huawei's obligations to the Chinese
government and the danger that poses to the integrity of telecommunications
networks in the US and elsewhere".

 

A spokesman for the Department for Digital, Culture, Media and Sport has
said it is reviewing the supply of equipment for the 5G network and will
report in due course.

 

Digital minister Margot James responded to the reports by tweeting: "In
spite of Cabinet leaks to the contrary, final decision yet to be made on
managing threats to telecoms infrastructure."

 

According to the Daily Telegraph, Huawei would be allowed to help build the
"non-core" infrastructure of the 5G network.

 

This would mean Huawei would not supply equipment for what is known as the
"core" parts - where tasks such as checking device IDs and deciding how to
route voice calls and data take place.

 

'Different approaches'

Huawei, a private company which already supplies equipment for the UK's
existing mobile networks, has always denied claims it is controlled by the
Chinese government.

 

It said it was awaiting a formal announcement, but was "pleased that the UK
is continuing to take an evidence-based approach to its work", adding it
would continue to work cooperatively with the government and the industry.

 

Ciaran Martin, the head of the National Cyber Security Centre - which
oversees Huawei's current UK work - told BBC Radio 4's Today programme a
framework would be put in place to ensure the 5G network was "sufficiently
safe".

 

Asked about the potential of a conflict in the position of Five Eyes
members, he added: "In the past decade there have been different approaches
across the Five Eyes and across the allied wider Western alliance towards
Huawei and towards other issues as well."

 

What is 5G?

 

5G promises great benefits but may come with higher security risks

5G is the next (fifth) generation of mobile internet connectivity, promising
much faster data download and upload speeds, wider coverage and more stable
connections.

 

The world is going mobile and existing spectrum bands are becoming
congested, leading to breakdowns, particularly when many people in one area
are trying to access services at the same time.

 

5G is also much better at handling thousands of devices simultaneously, from
phones to equipment sensors, video cameras to smart street lights.

 

Current 4G mobile networks can offer speeds of about 45Mbps (megabits per
second) on average and experts say 5G - which is starting to be rolled out
in the UK this year - could achieve browsing and downloads up to 20 times
faster.

 

What is 5G and what will it mean for you?

Six UK cities named as 5G pioneers

BBC security correspondent Gordon Corera says it is believed the decision to
involve Huawei was taken by ministers at a meeting of the government's
national security council on Tuesday, chaired by Prime Minister Theresa May.

 

The home, defence and foreign secretaries were reported to have raised
concerns during the discussions.

 

In a tweet, shadow Cabinet Office minister Jo Platt said using Huawei
equipment would raise "serious questions" about the "government's interests
and how they will secure networks".

 

The decision on Huawei is one of the most significant long-term national
security decisions this government will make and was always going to be
contentious.

 

5G will underpin our daily lives in ways that are hard to predict. So does
allowing a Chinese company to build those networks put people at risk of
being spied on or even switched off?

 

That is the concern from Washington and other critics who wanted the company
excluded.

 

But deciding to ban Huawei entirely from the network would have risked
slowing down the development of 5G and also upsetting China.

 

The UK believes it has experience in managing the risks posed by Huawei and
can continue to do so going forward.

 

But one retired senior intelligence official recently told me his view on
what to do about Huawei had changed.

 

In the past, he said, he had believed the policy of managing the risk had
been sufficient. But now he was less sure.

 

The reason was not to do with any change in his view of what the company
could do. Rather it was about the risks to relationships with close allies,
namely those of the Five Eyes and US.

 

Foreign Affairs Committee chairman Tom Tugendhat tweeted that allowing
Huawei to build some of the UK's 5G infrastructure would "cause allies to
doubt our ability to keep data secure and erode the trust essential to
#FiveEyes cooperation".

 

 

Speaking on the Today programme, Mr Tugendhat said the proposals still
raised concerns, as 5G involved an "internet system that can genuinely
connect everything, and therefore the distinction between non-core and core
is much harder to make".

 

Joyce Hakmeh, a research fellow at think tank Chatham House and co-editor of
the Journal of Cyber Policy, said the UK's current mobile network needs to
be transformed to the "the next level... quicker, more stable 5G".

 

But she added the government would be hoping its decision on Huawei did not
upset either China or the US.

 

Limiting - but not barring - Huawei technology from the 5G networks would be
a "diplomatic way of managing a difficult situation" for the UK, said Ms
Hakmeh.--BBC

 

 

 

Wanted: New Bank of England boss

The government has launched the recruitment process for a new governor for
the Bank of England.

 

The current governor Mark Carney will step down on 31 January 2020 after
more than six years in the post.

 

For the first time the government has hired a recruitment firm - Sapphire
Partners - to help with the search.

 

The job description has been placed on the public appointments website. The
annual salary is £480,000 - unchanged since 2013.

 

It states that candidates must be able to demonstrate the ability to lead "a
complex and powerful financial institution".

 

Interviews will be held over the summer and the appointment will be made by
the government in the autumn.

 

"Finding a candidate with the right skills and experience to lead the Bank
of England is vital for ensuring the continuing strength of our economy and
for maintaining the UK's position as a leading global financial centre," the
chancellor said in a statement.

 

Who is in the running?

With the Bank of England governor's job being crucial when it comes to our
financial wellbeing, it is likely that approaches to candidates are already
being made behind closed doors.

 

The chancellor has previously speculated that the ongoing uncertainty over
Brexit might put off some applicants. But it's still a prime job - with a
base salary of £480,000.

 

There's no shortage of potential internal candidates - such as Bank Deputy
Governor Ben Broadbent or Chief Economist Andy Haldane.

 

Then there's former Deputy Governor Andrew Bailey, and former rate-setter
Nemat Shafik.

 

But the use of a firm of headhunters for the first time implies the
chancellor is keen for this to be a wide sweep of talent in what is, after
all, the world's financial capital - and he is under pressure to consider
more female candidates.

 

And, as with the incumbent, the search could go beyond our borders.

 

Raghuram Rajan, a former head of India's central bank, is another name
that's been touted. But given the current political situation, the next
governor is almost certain not to hail from elsewhere in the EU.

 

'Advocates for women'

On its website, the recruitment firm Sapphire Partners, which been employed
to carry out the search describes itself as "advocates for women in
business", and it is run by five female partners.

 

Sapphire's appointment could be seen as an attempt to quell criticism over
gender diversity.

 

Last May, the Bank's failure to appoint another woman to its Monetary Policy
Committee (MPC) was described as "truly staggering".

 

Currently the nine-strong MPC - which votes on interest rate decisions each
month - has only one female member.

 

Foreign candidate?

The job description also emphases the ability to inspire confidence "on the
international stage", and experience at a financial institution such as the
Bank for International Settlements or the International Monetary Fund.

 

The preference for international experience suggests the Bank could be
looking for a foreign candidate.

 

Last September, the Treasury confirmed that Mr Carney would extend his term
until 2020, saying it would support a "smooth exit" from the European Union.

 

Officially the post is for eight years, but Mr Carney agreed to a five-year
term with the option of a further three.

 

Mr Carney has "helped steer the UK economy through a challenging period," Mr
Hammond said.

 

"Under Mark's leadership the Bank of England has been at the forefront of
reforms to make our financial system safer and more accountable," he added.

 

The Bank of England governor wields immense power in the UK financial
system, as they can influence the course of interest rates and also set
priorities for the Bank in managing risks to the financial system.

 

The Bank governor is the chair of the three central committees at the Bank
of England:

 

*         The Monetary Policy Committee which sets interest rates

*         The Financial Policy Committee which monitors risks in the
financial system

*         The Prudential Regulation Authority which regulates financial
firms

*         Last year Mr Carney, who is Canadian, received total pay of
£881,574. That included an accommodation allowance of £250,000, which the
Bank says reflects the difference in the cost of living in London rather
than Ottawa.--BBC

 

 

 

Easyjet bans nuts on all flights to protect passengers

Easyjet has banned the sale of nuts on flights to help protect passengers
with allergies.

 

The airline will also ban passengers from eating nut products if somebody on
board has an allergy to them.

 

Nut policy among airlines differs. British Airways and Ryanair, ask
passengers to refrain from eating peanuts if a fellow passenger has an
allergy.

 

At present there are no rules governing the serving of nuts during flights.

 

A proposed UK passenger charter, which could include rules for protecting
allergy sufferers, is currently under consultation.

 

The plans are part of the government's Aviation 2050 strategy.

 

German carrier Lufthansa is among firms with a rule against serving peanuts
on its planes. However, like most airlines, it says it cannot guarantee a
nut-free environment.

 

Outlining the new policy, Easyjet said: "We recommend that passengers inform
us of their allergy at the time of booking which enables us to pass this
information onto the cabin crew operating the flight."

 

Passengers can also notify the airline during the online booking process.

 

An overarching policy for airlines is supported by 11 year-old Josie, who
would like to see nuts banned by all operators.

 

Josie, from Wolviston in Stockton-on-Tees, worries about going on holiday
due to her life-threatening nut allergy.

 

She carries an EpiPen with her on flights but says they only delay an
anaphylactic reaction by a few minutes.

 

"You cannot do anything if you are 30,000 feet in the air," she said.--BBC

 

 

 

Egypt's economy seen growing 5.5 pct in year to end of June

CAIRO (Reuters) - Egypt’s economy is expected to grow 5.5 percent in the
fiscal year that ends in June, according to economists polled by Reuters, a
forecast slightly higher than the one offered by a survey three months ago
but lower than the government’s target.

 

The economy, with the exception of the oil industry, has struggled to
attract foreign investors since the 2011 uprising that unseated Hosni
Mubarak.

 

Egypt’s non-oil private-sector activity contracted for the seventh
consecutive month in March, according to the Emirates NBD Egypt Purchasing
Managers’ Index (PMI). Privatesector activity has expanded in only five
months over the last three years.

 

“Medium-term economic growth is underpinned by improving fiscal finances,
reforms to strengthen the business environment and rising investment in key
sectors,” said Nadene Johnson, an economist at NKC African Economics. “But
structural constraints are keeping the growth forecast slightly subdued.”

 

On Tuesday, Egypt’s election commission said nearly 90 percent of voters in
a referendum had approved constitutional changes, a move that could allow
President Abdel Fattah al-Sisi to stay in power until 2030.

 

Sisi’s supporters say he has stabilised Egypt and needs more time to reform
and develop the economy. Critics fear the constitutional changes will curb
political competition and debate, leading to a long period of one-man rule.

 

Aiming to shore up investor confidence, Egypt has been implementing economic
reforms as part of a three-year, $12 billion agreement with the
International Monetary Fund in November 2016. The reforms included a
value-added tax, cuts to energy subsidies and a steep currency devaluation.

 

The median forecast from 20 economists polled April 8-22, before the
referendum result, put growth at 5.5 percent in the current 2018/2019 fiscal
year, lower than the government’s target. Three months ago, the median of 14
economists predicted 5.3 percent GDP growth.

 

Medians projected 5.6 percent GDP growth in the fiscal year ending in June
2020 and 5.7 percent in the 2020/2021 fiscal year.

 

Egypt is targeting growth at 5.6 percent in the 2018/2019 fiscal year,
Finance Minister Mohamed Maait said in February, compared with its previous
target of 5.8 percent. It targets 6.1 percent growth in 2019/2020.

 

Economic growth will be “fuelled mostly by government spending on national
projects and infrastructure,” said Yara Elkahky, an economist at Naeem
Brokerage. “Household consumption growth, however, is expected to remain
muted as purchasing power still remains tight.”

 

The new consensus put Egypt’s urban consumer inflation at down from the 15.5
percent projected three months ago.

 

Annual urban consumer price inflation slowed to 14.2 percent in March from
14.4 percent in February. It is expected to decelerate to 12.0 percent in
the 2019/2020 fiscal year and 9.6 percent in the 2020/2021 fiscal year.

 

Core inflation, which strips out volatile items such as food, fell to 8.9
percent in March from 9.2 percent in February.

 

Millions of Egyptians live below the poverty line and struggle to meet basic
needs. They have faced rising costs since the pound was floated.

 

Most remaining fuel subsidies are due to be lifted by mid-June.

 

Elkahky expects inflation “to continue declining amid normalised supply
levels and seasonality impacts,” adding that inflation could drop further as
the Egyptian pound appreciates against the dollar.

 

“Risks to fiscal sustainability are still substantial,” said Maya Senussi,
senior economist for the Middle East at Oxford Economics. She added that
“could weigh on the general thrust of the (government’s economic reform)
policy.”

 

 

 

Nigeria's oil minister, Saudi Aramco discuss investment options

LAGOS (Reuters) - Nigerian Oil Minister Emmanuel Kachikwu and the president
of Saudi Aramco have discussed investment options in the mid and downstream
sector, Nigeria’s petroleum ministry said on Wednesday in a tweet.

 

Aramco is expanding downstream operations such as refining and
petrochemicals production as part of its drive to become the world’s largest
integrated energy firm.

 

Nigeria imports the bulk of its petrol, despite being Africa’s biggest crude
oil producer, due to its dilapidated refineries.

 

Last month, Nigeria’s state oil company said it was in talks with different
consortiums to revamp its refineries and save billions of dollars on fuel
imports.

 

Kachikwu is on an official visit to Saudi Arabia.

 

Nigeria’s petroleum ministry, on its Twitter feed, said Kachikwu and Aramco
officials including its president discussed “areas of shared investment
interests and existing viable investment options in the midstream and
downstream sector”.

 

In another tweet, it said Kachikwu held talks with Saudi Arabia’s energy
minister to “cement the budding interest to support Nigeria’s infrastructure
development in the oil sector”.

 

The talks are the latest between Nigerian and Saudi officials. In February,
Nigeria’s president said his country - a member of the Organization of the
Petroleum Exporting Countries - was willing to reduce oil output to help
secure higher prices after an envoy from Saudi Arabia called for better
adherence to a deal on production cuts.

 

 

MTN converts Nigerian unit to public company before planned listing

LAGOS (Reuters) - South African telecoms firm MTN has converted its Nigerian
unit into a public company before its planned listing on the Nigerian bourse
in the first half of the year.

 

MTN Nigeria said on Wednesday the conversion was a legal requirement to
prepare for the listing and it was engaging with the Securities and Exchange
Commission and Nigerian Stock Exchange.

 

“Our conversion to a Plc is a major step towards listing by introduction on
the Nigerian Stock Exchange in the first half of 2019,” MTN Nigeria chief
executive Ferdi Moolman said.

 

Nigeria is MTN’s biggest market, with 52.3 million users in 2017, and
accounts for a third of the company’s annual core profit, but has proven
problematic in recent years.

 

In December, MTN agreed to make a $53 million payment to resolve a dispute
in Nigeria. The move ended a four-month multi-billion dollar dividend
repatriation row that hammered its share price.

 

Moolman said last month he expected the listing on the Nigerian bourse to be
“probably more towards April and May”.

 

The company expects to list the unit without raising money from investors
immediately, and has said it would simplify its capital structure before the
listing.

 

 

 

BMW to buy cobalt direct from Australia, Morocco for EV batteries

PARIS (Reuters) - German carmaker BMW will buy cobalt, a key component for
electric vehicle (EV) batteries, directly from mines in Australia and
Morocco to ensure they are not produced by child labour, an executive said
on Tuesday.

 

The announcement came as the London Metal Exchange (LME) launched an
initiative under which it could ban or delist brands that are not
responsibly sourced by 2022 to help root out metal tainted by child labour
or corruption.

 

Andreas Wendt, BMW board member responsible for procurement, told a briefing
in Paris that the new supply of cobalt would be used in the carmaker’s next
generation of EVs in 2020.

 

A spokesman for mining and trading firm Glencore told Reuters his company
would supply BMW with cobalt from its Australian Murrin Murrin mine, which
last year produced 2,900 tonnes of cobalt.

 

The world’s largest known reserves of cobalt are found in the Democratic
Republic of Congo, where the raw ingredient is often mined by small,
artisanal operations and supply chains are not strictly monitored.

 

BMW said last year it was exploring ways to improve working conditions for
mining cobalt in Congo through a pilot project.

 

 

 

Brazilian miner Vale files $2 bln lawsuit over Guinea project

RIO DE JANEIRO (Reuters) - Brazilian miner Vale SA said on Wednesday it has
filed a lawsuit in the United States to force BSG Resources Ltd (BSGR) to
pay it about $1.25 billion, as mandated by an arbitrator in a dispute over a
joint venture in Guinea, plus interest and expenses.

 

Earlier this month, Vale said an arbitration court in London had ordered
BSGR to pay $1.246 billion. The suit, filed in the U.S. District Court for
the Southern District of New York, seeks payment of more than $2 billion
when interest and expenses are taken into account.

 

The arbitration case stemmed from a dispute between Vale and BSGR, which is
controlled by billionaire Beny Steinmetz, over Simandou, which contains
billions of tonnes of high-grade iron ore, making it one of the world’s
biggest iron ore deposits.

 

Vale has accused BSGR of fraudulently inducing it to buy a 51 percent stake
in a joint venture to develop the mine, a concession later revoked by the
Guinean government on charges the rights were obtained through corrupt
means.

 

A government report at the time said Vale was not a participant in the
corruption.

 

 

 

South Africa's Tongaat to restate prior results after accounting review

The company said it had started implementing a turnaround plan and that the
review included timing and recognition of land sales, as well as assessment
of various assets for impairment.

 

Investors have been jittery about accounting irregularities after
multinational retailer Steinhoff International Holdings NV revealed a more
than $12 billion hole in its accounts in December 2017, which wiped out more
than 90 percent of its market value.

 

Tongaat, which has operations in South Africa, Mozambique and Zimbabwe, said
last month a review was being carried out by newly appointed CEO Gavin
Hudson and it had revealed past accounting practices that may require
remedial action.

 

The company said on Wednesday it was reviewing its strategic and financial
position to stabilise its business and debt levels.

 

Tongaat, whose net debt stood at 7.754 billion rand ($539.54 million) as of
Sept. 30, 2018, said in February it had entered into discussions with its
lenders.

 

The company appointed PricewaterhouseCoopers (PwC) last month to review its
accounting practices.

 

Tongaat’s shares, which had fallen 23 percent since revealing the accounting
issue last month, were down 3.6 percent at 22.64 rand.

 

The company’s shares have been on a downward trajectory since it warned in
February that it expected a full-year loss due to a sugar tax in South
Africa and higher sugar imports.

 

“We continue to engage in a collaborative process with our debt providers to
ensure the company’s long-term sustainability,” the company said on
Wednesday.

 

 

 

South Africa's 2018/2019 maize crop seen down 15 percent on drought

(Reuters) - South Africa is likely to harvest 15 percent less maize in
2018/2019 compared with the previous season after drought delayed plantings,
a Reuters poll showed on Wednesday.

 

The government’s Crop Estimates Committee (CEC), which will provide its
third production forecast for the 2018/2019 crop on Thursday, is seen
pegging the harvest at 10.6 million tonnes, down from the 12.510 million
tonnes in the 2017/2018 season, a poll of five traders and market analysts
showed.

 

The 2019 harvest is expected to consist of 5.447 million tonnes of the food
staple white maize and 5.266 million tonnes of yellow maize, which is used
mainly in animal feed.

 

First National Bank’s senior agricultural economist Paul Makube said
although there were pockets of dryness in parts of the in the key
maize-growing provinces of Free State and the North West, production
conditions were generally favourable for most areas towards the end of the
season.

 

Frost damage, which has not yet been reported, could still impact yields in
parts of the Free State and the North West provinces, he said.

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

Workers Day

 

01 May  2019

 


 

Africa Day

 

25 May 2019

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <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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