Major International Business Headlines Brief::: 06 December 2019

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Major International Business Headlines Brief::: 06 December 2019

 


 

 


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*  South Africa makes last-ditch move to save state airline

*  South Africa hit by power cuts as Eskom units break down

*  South Africa business confidence improves in November

*  Nigeria's Senate passes record 10.59 trillion naira budget for 2020

*  Kenya's Safaricom tests new mobile savings service

*  Uganda to borrow 600 million euros to plug 2019/20 budget deficit

*  Britain's fraud office opens Glencore bribery investigation

*  Port operator ICTSI to double capacity at its Congo terminal

*  Commercial International Bank Egypt seeks to buy small Kenyan bank

*  Botswana's Minergy puts UK listing plans on hold

*  Saudi Aramco raises $25.6bn in world's biggest share sale

*  Thomas Cook customers face refund delays

*  Huawei launches new legal challenge against US ban

*  Macron pension reform: France paralysed by biggest strike in years

*  British Steel's French site advertised for sale

*  UK household debts see big increase

 

 


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South Africa makes last-ditch move to save state airline

JOHANNESBURG/CAPE TOWN (Reuters) - South Africa’s government will cede
control of the national airline to a restructuring specialist in a
last-ditch attempt to save the cash-strapped business from collapse.

 

As part of a rescue plan started on Thursday, the government will hand the
running of South African Airways (SAA) to an as-yet unidentified specialist
to make the sort of painful cuts that would be difficult for politicians to
push through.

 

SAA has been granted a 4 billion rand ($272 million) lifeline from the
government and banks to launch the rescue plan, but that cash could only
last for months, analysts say.

 

The airline has been on the brink of collapse since a crippling strike last
month left it without enough money to pay salaries on time. Then two major
travel insurers stopped covering its tickets against the risk of the company
becoming insolvent.

 

SAA employs around 5,000 people, while the wider SAA Group, which includes
maintenance and catering divisions, employs around 10,000.

 

The airline, which has not made a profit since 2011 and has received more
than 20 billion rand of government bailouts over the past three years, said
it would publish a new provisional flight schedule soon.

 

Airport staff at Johannesburg’s OR Tambo airport said there hadn’t been much
disruption to SAA’s timetable so far, but many travellers were pessimistic
about its prospects.

 

“I think SAA is doomed already ... We shouldn’t be paying out of our own
money. That money should be coming from somewhere else,” said Alicia
Knoetze, 34, who was travelling to a motorcross competition in Zimbabwe.

 

Others said having a national airline was a point of pride.

 

“We need something to boast about when we go to different countries. We need
something that’s our own,” said Abulele Dlungele, 19, a university student
returning to London for the end-of-year holidays.

 

Public Enterprises Minister Pravin Gordhan said the business rescue process
was the best way to rebuild SAA into a stronger entity. He said the plan was
to attract an equity partner later.

 

The Communist Party, a key ally of the governing African National Congress
party, said it was disappointed with the government’s decision and wanted a
“state-led turnaround process”.

 

Trade unions, also deeply suspicious of moves that could weaken the role of
the state in the economy, said they were consulting members before
commenting.

 

CEDING CONTROL

Under Thursday’s plan, it will be a business rescue practitioner, rather
than the government as SAA’s shareholder, who will decide how the future of
the airline should look.

 

SAA board member Martin Kingston told Reuters the airline would name the
practitioner in the next few hours.

 

He said SAA had been days away from being shut down before the board decided
on Wednesday to place the airline in a business rescue process, after a
“massive erosion of confidence” related to last month’s strike.

 

The restructuring expert will aim to either return the airline to solvency
or maximise value for its creditors.

 

Banks have promised to give SAA 2 billion rand of loans guaranteed by the
government to launch the process, with the government providing a further 2
billion rand in what Gordhan termed a “fiscally neutral manner”.

 

SAA’s government-guaranteed debt, mainly held by local banks, will not be
subject to writedowns in the business rescue process, but analysts expect
other creditors to suffer losses.

 

SAA said the process sought to provide the best prospects for “selected
activities within the group to continue operating successfully”.

 

Guy Leitch, an aviation expert and editor of SA Flyer magazine, said
business rescues often failed because they were left too late.

 

He said the rescue would probably require more than 4 billion rand and was
sceptical officials would continue to fund it since they would have limited
say in its outcome.

 

Hans Klopper of BDO Business Restructuring said the rescue process for SAA
could take months if not years.

 

A relatively small amount of SAA’s assets could be recoverable and
confidence in SAA is already low, he said.

 

“If there aren’t willing patrons prepared to book flights then the bottom
falls out of the whole business,” Klopper said.

 

($1 = 14.7075 rand)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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South Africa hit by power cuts as Eskom units break down

JOHANNESBURG (Reuters) - South Africa was hit by power cuts on Thursday
after a number of generating units broke down, forcing the struggling state
power utility Eskom to cut up to 2,000 megawatts (MW) of power from the
national grid on a rotational basis.

 

Eskom’s troubles have become one of the biggest challenges for President
Cyril Ramaphosa, who is trying to revive growth in the country’s economy.

 

The company produces more than 90% of South Africa’s power but has struggled
to keep up with demand, leading to nationwide power cuts that have deterred
investment.

 

“The severe supply constraint being experienced has come about due to high
levels of unplanned breakdowns that have exceeded the 10,500 MW limit,”
Eskom said in a statement.

 

Earlier on Thursday, Eskom said there were unplanned breakdowns of
generating units with 12,300 MW capacity. It has now experienced a loss of
additional generation.

 

The utility has a total of around 45,000 MW of generating capacity.

 

The power cuts would occur from 4 pm (1400 GMT) to 11 pm. (2100 GMT) in
order to protect the power system from a total collapse, it said.

 

A week ago Eskom made a 1.3 billion rand ($88.39 million)profit in the six
months to the end of September, thanks to higher tariffs during the winter
months when demand is greater.

 

But the utility predicted a 20 billion rand loss for the full year, as
electricity tariffs are lower in the summer season and spending on plant
maintenance, debt repayments and salaries will rise.

 

($1 = 14.7075 rand)

 

 

 

South Africa business confidence improves in November

PRETORIA (Reuters) - South African business confidence recovered slightly in
November as the volume of exports rose and private sector borrowing ticked
up, a survey showed on Thursday.

 

The South African Chamber of Commerce and Industry’s (SACCI) monthly
business confidence index (BCI) rose to 92.7 in November from 91.7 in
October.

 

“The increase in the BCI in November must be repeated in the months to come
to have a lasting effect on business confidence level,” the business body
said in a statement.

 

Five sub-indices improved, four weakened, and four remained even.

 

Business confidence in Africa’s most developed economy has remained on the
ropes in the last 18 or so months since President Cyril Ramaphosa took over,
promising deep policy reforms and faster growth. Progress has so far been
slow on both fronts.

 

Gross domestic product shrank by 0.6% in the third quarter according to data
on Tuesday, a second quarterly contraction in 2019, with companies slashing
inventories in a sign they expected weak demand to persist into the
year-end.

 

“The effect of indecisiveness and the time lapses to taking action are going
to impact critically on the economy and therefore business and investor
confidence as year-end approaches,” SACCI said.

 

 

 

Nigeria's Senate passes record 10.59 trillion naira budget for 2020

ABUJA (Reuters) - Nigeria’s Senate on Thursday passed a record 10.59
trillion naira ($34.72 billion) budget for 2020, paving the way for a likely
return to the international debt market next year as the country struggles
to shake off the impact of a recession.

 

The budget for Africa’s biggest economy passed by parliament’s upper house
assumes a deficit of 1.52% of the estimated gross domestic product -
representing around 2.18 trillion naira - to be financed through foreign and
domestic borrowing.

 

 

 

Kenya's Safaricom tests new mobile savings service

NAIROBI (Reuters) - Kenya’s leading telecoms operator Safaricom said on
Thursday it was testing a new mobile savings service, seeking to broaden its
successful M-Pesa mobile money platform.

 

Policymakers say the East African nation suffers from a low national savings
rate and analysts said Safaricom could be looking to target that untapped
market with the new product, dubbed “Mali” (Kiswahili for wealth).

 

Mali, which will be capped at 70,000 shillings ($690) per saver, will offer
an interest rate of 10% per year, higher than that offered by commercial
banks, the Business Daily newspaper reported.

 

Safaricom confirmed it was testing a savings product called Mali, but did
not comment on the other details in the newspaper report.

 

“If it comes on board, it will be a game changer to the ordinary Kenyan. It
should do well for their returns,” said Lisa Kimathi, an investment analyst
at Standard Investment Bank.

 

M-Pesa, which allows users to send and receive cash, and pay for goods and
services even on basic feature phones, has powered the company’s earnings in
recent years.

 

During the company’s first half to the end of September, M-Pesa revenues
grew by 18% to 41.97 billion shillings, with the number of users standing at
23.6 million.

 

Safaricom, part owned by Vodacom and Britain’s Vodafone, already runs an
overdraft facility on M-Pesa called Fuliza and it has savings services in
conjunction with two banks - KCB Group and NCBA Group, which offer lower
interest rates to depositors.

 

($1 = 101.5000 Kenyan shillings)

 

 

 

Uganda to borrow 600 million euros to plug 2019/20 budget deficit

KAMPALA (Reuters) - Uganda plans to borrow 600 million euros ($661 million)
from international banks to plug a hole in its 2019/2020 budget after
domestic revenue collections fell short by 9%, amid delays in implementation
of some planned tax-generating measures.

 

The move could heighten concerns about the East African country’s growing
debt pile which the International Monetary Fund has warned would likely
surpass 50% of gross domestic product in 2021/2022. Uganda’s financial year
starts in July.

 

The Finance Ministry said in documents posted on parliament’s website that
the government planned to borrow the money from a local unit of South
Africa’s Standard Bank and regional Trade Development Bank.

 

($1 = 0.9073 euros)

 

 

 

Britain's fraud office opens Glencore bribery investigation

(Reuters) - Britain’s Serious Fraud Office (SFO) has launched an
investigation into Glencore over suspicions of bribery, it said on Thursday,
adding to the legal woes of one of the world’s biggest commodity traders.

 

Since July last year, Glencore has been subject to a U.S. Department of
Justice enquiry in connection with corruption in the Democratic Republic of
Congo, Venezuela and Nigeria.

 

Britain’s SFO on Thursday said it was also investigating the conduct of
Glencore businesses, its officials, employees, agents and associated
persons, without commenting further.

 

Glencore, which has operations in over 150 countries, said it would
cooperate with the investigation.

 

The company’s shares were trading 7% lower at 221.60 pence by 1439 GMT, the
biggest decline among London’s blue-chip stocks.

 

Over the course of this year, Glencore’s shares have fallen more than 20%,
pressured by broader concerns about safety and sustainability in the
Democratic Republic of Congo.

 

CEO Ivan Glasenberg told investors earlier this week he expected to step
down next year once a new management team is in place.

 

Analyst Paul Gait at Bernstein said the SFO action would inevitably add to
Glencore’s problems, but it was not yet clear whether it was “genuinely
incremental or just the SFO piggybacking on the DoJ”.

 

 

 

Port operator ICTSI to double capacity at its Congo terminal

JOHANNESBURG (Reuters) - Philippines-based port operator International
Container Terminal Services Inc. (ICTSI) will more than double the capacity
of its container terminal in Congo as part of a $100 million expansion, the
company said on Thursday.

 

Located on the Congo River, the port city of Matadi, where ICTSI operates
the Matadi Gateway Terminal (MGT) under a joint venture with Congolese
property management company SIMOBILE, is the Democratic Republic of Congo’s
primary shipping hub.

 

The planned expansion will bring MGT’s throughput capacity up to 400,000
containers annually.

 

Upgrades include an extension of the quay from 375 metres to 500 metres, a
doubling of the terminal yard area and the acquisition of new equipment.

 

Plans to implement a public private partnership from next year to dredge the
Congo River to a depth of 12.5 metres should lower marine freight rates and
increase Matadi’s competitiveness, ICTSI said.

 

With a portfolio largely focused on emerging markets, ICTSI operates ports
across Asia, Australia, the Americas and Africa, where, in addition to its
Congo port, it also runs a container terminal in Madagascar.

 

 

 

Commercial International Bank Egypt seeks to buy small Kenyan bank

NAIROBI (Reuters) - Egypt’s Commercial International Bank is looking to buy
a controlling stake in Mayfair Bank, one of Kenya’s smallest banks, Kenya’s
competition authority said.

 

The Competition Authority of Kenya is analysing the Egyptian lender’s
application to be allowed to buy the controlling interest in Mayfair, the
regulator told Reuters on Thursday, without saying when it expected to reach
a decision.

 

The authority did not provide any more information and there was no
immediate comment from the central bank about the transaction.

 

Commercial International Bank Egypt was not immediately available for
comment.

 

Mayfair, which opened its doors in August 2017, has about five outlets and
assets of 8.2 billion Kenyan shillings ($80.79 million), according to its
financial statement for the nine months to the end of September. It posted a
loss of 250 million shillings in that period.

 

Kenya’s banking industry has had a flurry of deals in the last three years
after the government capped interest rates, forcing banks to look for
survival strategies.

 

Banking executives say the country is “over-banked”, with about 40
commercial lenders serving a population of 47 million people, about one bank
for just over a million people, instead of one bank per two million people,
which they consider more appropriate.

 

Recent deals in the sector include the merger of NIC Bank and CBA Group to
form NCBA, and the acquisition of National Bank of Kenya by KCB Group.

 

Equity Group, which is one of the top banks, has looked slightly further
afield, announcing a series of acquisitions in the Democratic Republic of
Congo and other African countries this year.

 

The government removed the cap on lending rates last month, to try to boost
credit growth, but commercial banks have not yet announced new pricing for
loans.

 

Patrick Njoroge, the central bank governor, said last month he did not
expect banks to return to the “wild west kind of banditry”, after the
removal of the cap.

 

($1 = 101.5000 Kenyan shillings)

 

 

 

Botswana's Minergy puts UK listing plans on hold

GABORONE (Reuters) - Botswana coal miner, Minergy, has put on hold plans to
list on London’s junior AIM stock market as coal prices have tumbled in the
southern African market while uncertainty surrounding Brexit has weighed on
decision making, the company said on Thursday.

 

Minergy joins more than a dozen companies that have shelved their stock
market listing plans in Europe this year as earlier investor optimism
evaporated due to global trade tensions and angst about Britain’s protracted
exit from the European Union.

 

The company, which commissioned its 1.2 million tonnes per annum Masama coal
mine early this year, had planned to list on AIM in 2018 but says it will
now focus on operations and related efficiencies around the plant and
product output.

 

“Current unfavourable market conditions are making it extremely difficult,
with uncertainty surrounding Brexit weighing on decision-making. This is
despite successful meetings and roadshows to potential investors in London
throughout 2019,” Minergy said.

 

“Minergy has opted to step back for a few months and wait for more certainty
on the way forward concerning Brexit,” added Morné du Plessis, Chief
Executive Officer of Minergy.

 

Minergy said it had also experienced a setback in securing more off-take
agreements for its products in the southern African market due to a 37%
decline to $57 per tonne in coal prices in the period from February 2019 to
August 2019.

 

Botswana is estimated to hold coal reserves of about 212 billion tonnes, but
the country has only two operating coal mines with the 390-million tonne
Masama mine being the first privately-owned coal mine.

 

The other is state-owned Morupule coal mine.

 

 

Saudi Aramco raises $25.6bn in world's biggest share sale

State-owned oil giant Saudi Aramco has raised a record $25.6bn (£19.4bn) in
its initial public offering in Riyadh.

 

The share sale was the biggest ever, surpassing that of China's Alibaba
which raised $25bn in 2014 in New York.

 

Aramco relied on domestic and regional investors to sell a 1.5% stake after
lukewarm interest from abroad.

 

The IPO will value it at $1.7tn when trading begins - short of its $2tn
target, but making it the most valuable listed company in the world.

 

The share sale is at the heart of Crown Prince Mohammed bin Salman's plans
to modernise the Saudi economy and wean it off its dependence on oil.

 

World's most profitable company to go public

The country urgently needs tens of billions of dollars to fund megaprojects
and develop new industries.

 

Aramco has found the journey to its public offering testing.

 

It initially sought to raise $100bn on two exchanges - with a first listing
on the kingdom's Tadawul bourse, and then another on an overseas exchange
such as the London Stock Exchange.

 

But it scaled back its plans after foreign investors raised concerns about
climate change, political risk and a lack of corporate transparency.

 

International institutions also baulked at the firm's $1.7tn valuation,
prompting Aramco to pull marketing roadshows in New York and London.

 

Instead, it focused its marketing efforts on Saudi investors and wealthy
Gulf Arab allies. Saudi banks also offered citizens cheap credit to bid for
the shares following a nationwide advertising campaign.

 

Shares were priced at 32 Saudi riyals ($8.53) on Thursday and were heavily
oversubscribed, according to reports.

 

But it remains to be seen whether the share price rises or falls when
trading begins, most likely later this month.

 

The IPO's pricing came as Saudi Arabia met with Russia and other members of
the Organization of the Petroleum Exporting Countries (Opec) in Vienna to
discuss oil production.

 

The allies - who together pump 40% of the world's oil - agreed to deepen
output cuts as part of ongoing efforts to prop up global prices.

 

Oil prices collapsed in mid 2014 and have yet to fully recover, leaving
oil-dependent economies under pressure.

 

The market is struggling with slower global growth and a flood of new
production from countries such as the US.

 

A bigger challenge awaits

Sameer Hashmi, Middle East business correspondent

 

Three years after it was first announced Saudi Arabia is finally taking the
world's most profitable company public. The market valuation is less than
the $2tn target that Crown Prince Bin-Salman - had initially hoped to
achieve.

 

The company has committed to a large annual dividend until 2024 to ensure
investors don't sell shares in the near future leading to a drop in market
valuation.

 

But analysts believe the biggest challenge for the company will be if it
decides to list on an international stock exchange in the future to expand
its investor pool. The core business of Saudi Aramco - oil - is considered
by many experts its biggest risk.

 

Demand for crude has been falling, which could make it difficult for the
company to grow in the long term. The climate crisis and geopolitical risks
are also key factors that could deter potential investors.--BBC

 

 

 

Thomas Cook customers face refund delays

Customers of defunct tour operator Thomas Cook have reacted angrily after
learning they will face delays in getting refunds for Atol-protected package
holidays.

 

The Civil Aviation Authority originally said all valid claims made on the
first day of its refund programme would be paid within 60 days, or by this
Friday.

 

But now it says only two thirds will be paid on time.

 

It said it had asked the remaining claimants for more information.

 

Customers have reacted angrily on Twitter, with some arguing they should
have been made aware from the start that the process could take longer than
60 days.

 

Others say they have struggled to reach the CAA by phone to get information.

 

 

CAA boss Richard Moriarty acknowledged many would be worried about not
getting their money back before Christmas.

 

"We thank consumers for their ongoing patience as we continue to do all that
we can to work through the UK travel industry's largest ever refunds
programme," he said.

 

Thomas Cook collapse: Your rights explained

Fraudsters 'target Thomas Cook refund site'

"I appreciate that this is a concerning time for Thomas Cook customers who
are waiting for their refunds, particularly at this time of the year."

 

When Thomas Cook ceased trading on 23 September, anyone who had paid for a
future Thomas Cook package holiday protected under the CAA's Atol scheme was
entitled to a full refund.

 

>From 7 October an online refund application system opened, and customers
were told the Civil Aviation Authority aimed to pay out within 60 days.

 

The CAA said it had received 67,000 claims on the first day, and two thirds
would be paid by this weekend, bringing the total amount of compensation
paid to date to £160m.

 

'Was this a deliberate delaying tactic?'

Sue Moore applied for a refund for her Thomas Cook holiday on the day the
CAA launched its online form.

 

She told the BBC: "We submitted our claim online and gave the information
that they asked for, which was only the information on our Atol form. They
did not ask for full booking information or evidence of payment.

 

"We have waited nearly 60 days only to be told that this additional
information was now required, and that we would have to wait a further 60
days before we would receive our refund.

 

"We are very disappointed and feel that the agency working for the CAA
should have thought through what information would be required in the first
instance before people submitted their claims. I wonder if this was a
deliberate delaying tactic to delay the payment of refunds?"

 

But it said the refunds operation had been challenging due to the potential
for fraudulent claims, and some 85,000 claims it had received so far were
invalid or duplicates.

 

It said it had "paused" the 60-day claims period for certain customers, and
urged anyone who had been asked for further information to respond at "the
earliest opportunity".

 

The regulator stressed that all valid Atol-protected payments would be
refunded, without giving a specific timeframe. But some who spoke to the BBC
said they had been told they would have to wait a further 60 days.

 

Thomas Cook collapsed in September after last-minute negotiations aimed at
saving the 178-year-old holiday firm failed.

 

It triggered the biggest ever peacetime repatriation, aimed at bringing more
than 150,000 British holidaymakers home. It also put 22,000 jobs at risk
worldwide, although some of those roles have been saved.

 

The refunds process has been rocky, with the CAA's online form crashing due
to high demand on the day it launched.

 

The website was also targeted by scammers, while many customers have said
the long wait for refunds has stopped them rebooking holidays.

 

The CAA said it had received 260,000 valid claims to date. But around 40,000
of the cancelled holidays eligible for a refund have still not been claimed
for.

 

Customers have until September next year to submit the online form.

 

One of the reassuring things about booking a holiday with a tour operator is
that the trip is Atol protected - you know you'll get your money back if
anything goes wrong with the company.

 

So the 300,000 customers who had booked package deals with Thomas Cook were
at least comforted that they'd get their money back. However, the process
has not been an easy one.

 

It's been a difficult job to weed out any hoaxes, and verify passengers
across different Thomas Cook booking systems. But the CAA set themselves a
tight deadline, to make sure people weren't out of pocket for long.

 

But now it's more disappointment for 22,000 of those early bird customers
who applied immediately for a refund and still haven't received a penny
back. For many it'll mean things are extra-tight this Christmas, or a longer
wait before they can afford to book a new holiday.

 

Those customers are being advised to provide any extra information asked
for, and be patient.--BBC

 

 

Huawei launches new legal challenge against US ban

Chinese telecoms giant Huawei has launched a legal challenge to a decision
by US regulators to classify it as a national security threat.

 

It comes after the US Federal Communications Commission put curbs on rural
mobile providers using a $8.5bn (£6.5bn) government fund to buy Huawei
equipment.

 

The firm said evidence that it was a threat to security "does not exist".

 

The move is the latest in a series of challenges between Huawei and the US.

 

The company has asked the US Court of Appeal to overturn the decision.

 

Speaking at a news conference at Huawei's headquarters in Shenzhen, the
company's chief legal officer, Song Liuping, said: "The US government has
never presented real evidence to show that Huawei is a national security
threat. That's because this evidence does not exist."

 

This is the second legal challenge this year by the company as it fights
back against the Trump administration's policies.

 

Huawei launched similar legal action in May, challenging a decision to ban
US government agencies from buying its equipment.

 

The company has been drawn into the disputes against the backdrop of the
bitter trade war between the world's two biggest economies.

 

It has a leading role in manufacturing and selling key technology for next
generation 5G telecoms infrastructure.

 

 

Meanwhile, Washington has been pressuring other nations to not allow Huawei
to build their critical 5G telecoms infrastructure.

 

At the Nato summit in the UK on Wednesday, UK Prime Minister Boris Johnson
said the decision on whether to allow Huawei a role in building Britain's 5G
networks would be based on ensuring continued co-operation with the US over
intelligence sharing.

 

"On Huawei and 5G, I don't want this country to be unnecessarily hostile to
investment from overseas," Mr Johnson said.

 

"On the other hand, we cannot prejudice our vital national security. Nor can
we prejudice our ability to co-operate with other vital... security partners
- and that will be the key criteria that informs our decision about
Huawei."--BBC

 

 

 

Macron pension reform: France paralysed by biggest strike in years

France's largest nationwide strike in years has severely disrupted schools
and transport.

 

Workers are angry about planned pension reforms that would see them retiring
later or facing reduced payouts.

 

More than 800,000 workers from a wide range of professions demonstrated
against the changes. Some cities saw clashes between protesters and police.

 

President Emmanuel Macron wants to introduce a universal points-based
pension system.

 

That would replace France's current system, which has 42 different pension
schemes across its private and public sectors, with variations in retirement
age and benefits.

 

"What we've got to do is shut the economy down," said union official
Christian Grolier of the Force Ouvrière (Workers' Force). "People are
spoiling for a fight."

 

Since coming to power, Mr Macron has pushed through other reforms including
relaxing labour laws and cutting taxes for businesses.

 

What's the latest?

More than 800,000 people had joined demonstrations in more than 100 cities
across France, the interior ministry said. The CGT union said 1.5m people
had turned out, including 250,000 in Paris.

 

The CGT also said workers had blocked seven of the country's eight oil
refineries, potentially causing fuel shortages if the strike continues.

 

In Paris, popular tourist sites including the Eiffel Tower, the Musée
d'Orsay and the Palace of Versailles were shut for the day.

 

At some of the marches there were clashes between protesters and police.

 

Police in Paris had arrested 71 people, officials said. There were numerous
reports of vandalism in the city. Violence was also reported in Nantes,
Bordeaux and Rennes.

 

Train operators Eurostar and Thalys cancelled at least half their services
linking Paris with London and Brussels. Eurostar will operate a reduced
timetable until 10 December

Hundreds of flights were cancelled

Air France cancelled 30% of internal flights and 10% of short-haul
international flights amid walkouts by air traffic controllers

Low-cost carrier EasyJet cancelled 223 domestic and short-haul international
flights, and warned passengers to expect delays.

Meanwhile the Extinction Rebellion group said it had sabotaged thousands of
e-scooters by painting over the QR codes that smartphone users scan to
unlock the vehicles.

 

The group said this was because e-scooters - despite being widely viewed as
an ecologically-friendly form of transport - actually required large
quantities of energy and resources during their manufacture and had short
life cycles.

 

How do French workers view the reforms?

Teachers and transport workers were joined by police, lawyers, hospital and
airport staff, and other professions for the general walkout.

 

Train driver Cyril Romero from Toulouse told France Info he would reconsider
his job if the reforms went through.

 

"I started in 2001 with a contract that allowed me to leave at 50. But like
everyone else, I got the reforms which pushed back my early retirement age
to 52-and-a-half and then, in reality, 57-and-a-half for full pension. Now
they want to make us work even longer."

 

An unnamed history teacher, writing in HuffPost, was planning to strike on
Friday as well as Thursday.

 

"For me, the pension reforms are one punch too many. We're fighting not to
lose hundreds of euros of pension a month - after more than 40 years in a
job.

 

"How can you even think of ending your career in front of pupils beyond the
age of 70, in worsening conditions and on what for many of us is just a
minimum wage?"

 

How much support is there for the strike?

Some trade union leaders have vowed to strike until Mr Macron abandons his
campaign promise to overhaul the retirement system.

 

One opinion poll put public support for the strikes at 69%, with backing
strongest among 18- to 34 year olds.

 

However farmers, whose pensions are among the lowest in the country, are not
taking part.

 

The Macron administration will hope to avoid a repeat of the country's
general strike over pension reforms in 1995, which crippled the transport
system for three weeks and drew massive popular support, forcing a
government climbdown.

 

A number of "gilets jaunes" (yellow-vest) protesters had said they planned
to join the demonstrations.

 

Anger of yellow vests grips France a year on

Who are the 'gilets jaunes'?

The movement, which emerged at the end of 2018, started with demonstrations
against a sharp increase in diesel taxes, but has broadened to reflect anger
over higher living costs and President Macron's economic policies.

 

Are Macron's reforms really that controversial?

Mr Macron's unified system - which he says would be fairer - would reward
employees for each day worked, awarding points that would later be
transferred into future pension benefits.

 

The official retirement age has been raised in the last decade from 60 to
62, but remains one of the lowest among the OECD group of rich nations - in
the UK, for example, the retirement age for state pensions is 66 and is due
to rise to at least 67.

 

The move would remove the most advantageous pensions for a number of jobs
ranging from sailors to lawyers and even opera workers.

 

Meanwhile, those retiring before 64 would receive a lower pension. For
example, someone retiring at 63 would receive 5% less, so unions fear it
will mean having to work longer for a lower pension.

 

A recent poll concluded that 75% of people thought that pension reforms were
necessary, but only a third believed the government could deliver them.--BBC

 

 

 

British Steel's French site advertised for sale

British Steel's French factory has been advertised for sale separately from
the UK operation, despite a Chinese firm's deal to rescue the whole company.

 

Last month, China's Jingye agreed to buy British Steel, paying about £50m to
take over the collapsed business and save about 4,000 jobs.

 

French authorities have powers to block the sale of the Hayange plant and
may have sanctioned the "for sale" ads.

 

The GMB union expressed concern at the new development.

 

National officer Ross Murdoch said: "GMB will be seeking assurances from
Jingye that they seek to keep the business complete.

 

"We'll also be seeking commitments from Jingye that their business plan is
robust enough to withstand any proposed split and that there is no danger of
the deal for the UK sites being scuppered, should the French government
decide to withdraw their approval."

 

The Financial Times reported Jingye executives "were furious" at the French
move.

 

Jingye said in a statement: "Jingye Group has submitted a request to the
French authorities for approval of our investment and has been engaged in
constructive discussions with the French government."

 

Strategic asset

It is unclear to what extent a separate sale of the northern French steel
mill would complicate Jingye's deal for the rest of the business.

 

One source told the BBC that putting the Hayange plant up for sale looked
like a "contingency measure" in case the Jingye acquisition fell through.

 

The plant makes steel for the French rail network, including the state-owned
train operator SNCF, and is considered a strategic asset.

 

When British Steel collapsed, control of the holding company passed to the
UK Insolvency Service, which is responsible for selling the assets. Although
the service is the beneficial owner of Hayange, day-to-day operational
control of the factory remains in France.

 

 

Adverts for the sale of a steel mill in north east France appeared in the
Financial Times (FT) and France's Les Echo. The ads did not name the plant,
but said it produced "steel railway products for railways, subways and
tramways" and employed about 450 people - descriptions which match the
Hayange facility.

 

The FT reported that Jingye executives have contacted the French finance
ministry to discuss Hayange. No one from the Chinese company was immediately
available for comment.

 

One potential bidder for the Hayange site is, according to the FT, Ascoval,
a French steel company controlled by Greybull Capital, which used to own
British Steel several years ago.

 

When Jingye agreed to buy British Steel last month it said it planned to
invest more than £1bn and would seek to "preserve thousands of jobs in a key
foundation industry for the UK".

 

British Steel employs about 4,000 people in Scunthorpe and Teesside.--BBC

 

 

 

UK household debts see big increase

Debts excluding mortgages are on the rise in the UK, according to the Office
for National Statistics.

 

Debts including credit card debt and personal loans rose 11% to £119bn in
the two years to March 2018, according to the ONS study, which is published
every two years.

 

Average household financial debt rose 9% to £9,400.

 

Much of the increase is a result of higher student loan and hire purchase
debt.

 

"The figures are skewed slightly by the £32bn of student debts - which the
vast majority of graduates will never pay back in full," said Sarah Coles,
personal finance analyst at stockbroker Hargreaves Lansdown.

 

"However, even excluding that we're carrying £87bn in loans, credit cards,
hire purchase agreements, overdrafts and arrears."

 

Median financial debt - taking the middle household as the norm, rather than
dividing total debt by the number of households - grew 12% to £4,500. This
figure excludes households with no debt and suggests these debts are not
evenly spread.

 

The poorest 10% of households have debts three times bigger than the value
of assets they own, while the top 10% have total wealth - property, pensions
and other assets- worth 35 times larger than their debt.

 

What do you think about this story? Join our BBC News Affordable Living
Facebook group here.

"Not all these debts are the same: there's a world of difference between
taking an affordable, low-cost loan for vital home improvements, and living
on your overdraft month after month, because it's proving so difficult to
make your salary stretch to the end of the month," said Ms Coles.

 

"But if you're one of the 44% of people who see their borrowing as a burden,
it's worth taking steps to deal with your debts."

 

Budgeting can tighten up finances, but there are many free advisers who can
help find the best way forward.--BBC

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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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
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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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