Major International Business Headlines Brief::: 16 December 2019

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Major International Business Headlines Brief::: 16 December 2019

 


 

 


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*  Ethiopia to get $3 bln loan from World Bank

*  Botswana loss-making retailer Choppies to exit 3 more African countries

*  South Africa asks industry for options to end power crisis

*  Four ways South Africa can get more power generation capacity

*  First Quantum launches arbitration against Zambian state miner

*  South Africa's rand hands back early gains to end flat

*  Kenya's competition regulator approves Airtel Kenya, Telkom Kenya merger

*  Angolan parliament approves 2020 budget with estimated oil price
$55/barrel - state news agency

*  MTN to defend views on data prices if referred to competition tribunal -
CEO

*  South Africa records smaller FDI inflows in third quarter

*  What does business want from Boris?

*  COP25: Longest climate talks end with compromise deal

*  British Steel takeover 'making progress'

*  Quadriga: Lawyers for users of bankrupt crypto firm seek exhumation of
founder

*  How a university dropout built a toy empire

*  Trump halts new tariffs in US China trade war

 

 


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Ethiopia to get $3 bln loan from World Bank

ADDIS ABABA (Reuters) - Prime Minister Abiy Ahmed said on Friday that
Ethiopia will receive $3 billion from the World Bank to help strengthen
reforms in its traditionally state-controlled economy.

 

Two days ago the International Monetary Fund said it had reached a
preliminary agreement for a three-year, $2.9 billion financing package to
support Ethiopia’s economic reforms.

 

Abiy did not give more details on the World Bank funding. He said on his
Twitter account that unnamed development partners have pledged more than $3
billion in addition to the World Bank and IMF funding.

 

The money will go toward macroeconomic, structural and sectoral reforms, he
said.

 

“This reaffirms both Governments’ and donors’ partnership to transition
Ethiopia to a prosperous and peaceful nation,” Abiy wrote.

 

Ethiopia’s State Minister of Finance Eyob Tekalign Tolina, did not say when
World Bank funds will be released, but told Reuters that once approved, the
World Bank loan would also be disbursed over a three-year period.

 

The World Bank Ethiopia office did not respond to messages seeking comment.

 

Abiy promised to open the economy to private investment when he took office
in 2018, aiming to modernise banking and telecoms and help provide jobs for
more of Ethiopia’s 105 million people.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Botswana loss-making retailer Choppies to exit 3 more African countries

GABERONE (Reuters) - Botswana budget retailer Choppies will exit three more
African markets, the company announced late on Friday, less than a fortnight
after it said it would sell its loss-making South African operations for
only 1 rand ($0.0680).

 

The company added that it posted a 445 million pula ($40.8 million) loss
after tax in delayed results for the financial year ending June 2018.

 

Choppies will dispose of its operations in Mozambique, Tanzania and Kenya,
halving its footprint to just four countries, it said in an announcement
through the Botswana Stock Exchange late on Friday.

 

The group will continue operating in Botswana, Zimbabwe, Zambia and Namibia.

 

“Negotiations to sell the Tanzanian subsidiary are at an advanced stage,
while the boards have also taken a decision to downscale its operations in
Kenya and dispose of the stores to the local operators,” it said in the
statement accompanying delayed financial results for the year ending June
2018.

 

It added that Choppies’ only store in Mozambique would be closed. It ceased
trading on September 2019.

 

Choppies saw its shares plunge by more than 60% last September after
announcing a delay to the publication of its financial statements.

 

The results were delayed after auditors raised concerns with the board about
accounting practices for the year ended June 30, 2018 and prior years.

 

Botswana Stock Exchange CEO Thapelo Tsheole told Reuters on Saturday that
Choppies would remain suspended from the bourse until the company releases
its results for the half-year period to December 2018 as well as for the
full-year to June 2019.

 

($1 = 10.9170 pulas)

 

($1 = 14.7075 rand)

 

 

 

South Africa asks industry for options to end power crisis

JOHANNESBURG (Reuters) - South Africa’s government on Friday asked industry
for the cheapest and quickest options to ease a power crunch, as cabinet
held an emergency meeting to try and resolve a crisis threatening growth in
Africa’s most industrialised economy.

 

 

President Cyril Ramaphosa called the meeting after struggling state utility
Eskom implemented the most extensive power cuts in more than a decade
earlier this week, disrupting supply to businesses and households.

 

Eskom, which cut power for a ninth straight day on Friday, is choking under
a massive 450 billion rand ($30.6 billion) debt burden and struggles to meet
demand because its creaking coal-fired power stations haven’t been
maintained properly.

 

It says the country desperately needs an additional 5,000 megawatts (MW) of
generating capacity.

 

The energy ministry published a document on Friday requesting information
from the power industry on options for between 2,000 MW and 3,000 MW of new
capacity at least cost.

 

Firms are to reply by the end of January and present options that could be
connected to the grid within three to six months or six to 12 months, if
they are selected in a procurement process, the document showed.

 

For a factbox on potential power generation options:

 

Ramaphosa had said on Wednesday that Energy Minister Gwede Mantashe and
Public Enterprises Minister Pravin Gordhan would present proposals on
solving the crisis to the cabinet meeting, after the outages forced some
miners to temporarily cut output early this week.

 

The power crisis is one of the biggest challenges for the former trade union
leader turned millionaire businessman who has promised to fix ailing state
firms and reverse years of mismanagement and stagnation.

 

But he has found it hard to overhaul Eskom and lift the country’s growth
rate due to entrenched opposition to his reforms. Another struggling state
firm, South African Airways, entered a form of bankruptcy protection last
week.

 

EASE REGULATIONS

Some of the proposals being considered by cabinet on Friday include
fast-tracking applications of businesses seeking to generate their own
electricity, bringing in temporary generators and connecting renewable
energy projects to the grid sooner than initially planned.

 

Private firms have been clamouring for years for the government to ease
regulations to allow them to generate more of their own electricity.

 

Roger Baxter, chief executive of industry group the Minerals Council, told
Reuters that miners could bring online between 500 MW and 1,500 MW of their
own generating capacity over the next few years, if regulations were eased.

 

“All our eggs are in one basket with Eskom, which is not delivering.
Government and business need to work together to solve this problem,” Baxter
said.

 

Eskom, which cut 2,000 MW of power from the national grid on Friday morning
but later scaled it back to 1,000 MW, wants a larger safety margin to do
more maintenance on its plants.

 

As of Friday morning, Eskom had almost 12,000 MW of unplanned breakdowns,
versus its nominal capacity of around 44,000 MW.

 

Power cuts are expected to ease from the middle of next week, as many local
businesses shut down before the Christmas and New Year public holidays.

 

($1 = 14.7075 rand)

 

 

 

Four ways South Africa can get more power generation capacity

JOHANNESBURG (Reuters) - Plagued by power cuts and with its infrastructure
in desperate need of revamping, South Africa’s struggling state power
utility Eskom says the country desperately needs an additional 5,000
megawatts (MW) of generating capacity.

 

 

Here are some options:

 

HARNESSING POWER FROM INDEPENDENTS

Eskom’s nominal generating capacity is around 44,000 MW. But it also
procures electricity from independent power producers.

 

Those projects - mainly renewables like wind and solar farms - have
installed capacity of around 4,000 MW of power. However, a cap on how much
electricity they are allowed to sell onto the national grid means they
currently have unused capacity.

 

Lifting the restriction would allow an additional 500 MW to immediately
enter the grid from wind farms alone, according to wind industry officials.
Harnessing unused capacity from solar projects could contribute around 300
MW more.

 

MORE INDEPENDENT PRODUCERS

Under former President Jacob Zuma, approval for new producers was delayed
for years. Those projects finally got a green light in 2018. Some under
construction could be fast-tracked and brought online before their agreed
commercial operation dates.

 

The government could also accelerate a new round of planned approvals that
has been held up by administrative delays. However, those projects would
likely not be on-stream for more than two years.

 

SELF-GENERATION

 

Private businesses have been clamouring for regulations to be eased to allow
them to generate more of their own power. They are currently required to
seek a license to generate more than 1 MW of electricity. Even below that
threshold they must register their facilities with the energy regulator, a
cumbersome process that has discouraged investment.

 

President Cyril Ramaphosa says the government will consider how to get more
self-generation online with excess production directed back onto the grid.

 

“FLOATING GENERATORS”

Ramaphosa has said South Africa will look at the possibility of procuring
more power via “floating generators”. While he did not go into detail, barge
or ship-based power plants provide quickly deployable capacity.

 

New York City, for example, has used barge-based power stations for decades.

 

In Africa, Ghana signed a 10-year deal with Turkey’s Karadeniz Holding in
2014 for 450 MW of floating generating capacity for its national grid.

 

Russian nuclear energy giant Rosatom is, meanwhile, developing floating
nuclear power stations, though they will likely not be available for
commercial use for several years.

 

 

 

First Quantum launches arbitration against Zambian state miner

LUSAKA (Reuters) - First Quantum Minerals has begun arbitration proceedings
against Zambian state miner ZCCM-IH to try to resolve a dispute over a money
transfer to the parent company of Kansanshi Mining, which is majority-owned
by the Toronto-listed group.

 

The arbitration proceedings follow a criminal complaint made by state-owned
ZCCM-IH against the alleged unauthorised transfer of money by Kansanshi
Mining to First Quantum’s local subsidiary.

 

ZCCM-IH in a separate case, launched action in October 2016 to sue First
Quantum for $1.4 billion over claims that the Canadian company borrowed $2.3
billion from its Zambian copper mining subsidiary Kansanshi Mining Plc
without informing ZCCM-IH, a minority shareholder.

 

The transfer in the latest case was made between Kansanshi Mining, which is
80% owned by First Quantum and 20% owned by ZCCM-IH, to Kansanshi Holdings —
the Zambian-registered vehicle through which Toronto-listed First Quantum
owns its majority stake.A ZCCM-IH official, who declined to be named, said
the company had received information on Friday that Kansanshi Holdings
intended to appeal for arbitration over the dispute. The statement said
arbitration would take place in London.

 

She declined to give further details of the money transfer or when it was
alleged to have occurred. She declined to comment further. First Quantum
could not be immediately contacted for comment.

 

The Canadian miner has been embroiled in a dispute with the Zambian
government after being handed a $5.8 billion bill for unpaid import duties
last year.

 

 

South Africa's rand hands back early gains to end flat

JOHANNESBURG (Reuters) - South Africa’s rand was flat against the dollar on
Friday, struggling for direction after surprise gains in the face of a
darkening growth outlook following a week of nationwide power cuts and
ongoing uncertainty over U.S.-China trade talks.

 

At 1530 GMT, the rand was 0.07% firmer at 14.4790 per dollar, hardly budged
from the morning’s open as investors awaited details of a cabinet decision
on how to deal with a crisis at power utility Eskom.

 

South Africa’s government on Friday asked industry for the cheapest and
quickest options to ease a power crunch, as cabinet held an emergency
meeting to try to resolve a crisis threatening growth in Africa’s most
industrialised economy.

 

Eskom, which cut power for a ninth straight day on Friday, is choking under
a massive 450 billion rand ($30.6 billion) debt burden and struggling to
meet demand because its creaking coal-fired power stations haven’t been
maintained properly.

 

The rand surprised market watchers by racing to a 5-month high in the
session, hitting 14.3700 before pulling back, in what some analysts said was
a move backed by the high yield on offer, more so after local inflation fell
again and the U.S. Federal Reserve held rates.

 

“The rand rallied sharply overnight in response to a more confident tone on
U.S.-China trade negotiations and the UK elections which reduce
uncertainty,” analysts at ETM said in a note.

 

“Domestically, it is likely that a return to an almost functioning power
grid will support sentiment following the return to stage 1 load shedding
last night.”

 

On the bourse, stocks soared alongside emerging market shares as reports of
a Sino-U.S. trade deal, as well as the prospect of a smooth Brexit, fired
risk appetite across the globe.

 

The benchmark JSE Top-40 Index climbed 1.81% to 50,499.02 points while the
broader All-Share Index rose 1.78% to 56,815.08 rand.

 

Financials were the biggest winners on the blue-chip index on the back of a
firmer rand. Insurance and specialised finances company Discovery topped the
bourse, up 6.13% at 122 rand.

 

Banks followed, with Absa Group up 5.14% to 152.88 rand, and Standard Bank
Group rising 4.36% to 169.50 rand.

 

Materials shares acted as a drag as gold prices fell and investors switched
to riskier stocks. AngloGold Ashanti was down 5.37%, while Goldfields fell
3.27%.

 

In the fixed income market, the yield on the benchmark government bond due
in 2026 was down 1.5 basis points to 8.32%.

 

 

 

Kenya's competition regulator approves Airtel Kenya, Telkom Kenya merger

NAIROBI (Reuters) - Kenya’s competition authority has approved the planned
merger between Airtel Kenya and Telkom Kenya, the regulator said on Friday,
in a deal that could challenge market leader Safaricom’s dominance of the
East African country’s telecoms industry.

 

India’s Bharti Airtel said in February its Airtel Networks Kenya unit had
agreed to buy Telkom Kenya, the East African nation’s smallest operator in
which the state still has a 40% shareholding after a majority stake was sold
in 2007.

 

The combined entity would create stronger competition for Safaricom, which
now controls about two thirds of the market in terms of subscribers.

 

The Competition Authority of Kenya said in a legal notice that the merged
entity was not allowed to sell itself for the next five years, and must
honour any existing contracts with government bodies.

 

One last hurdle to the merger is the anti-corruption commission lifting a
suspension it ordered in August while it investigated allegations about the
misappropriation of public funds at Telkom.

 

France’s Orange bought a majority share in Telkom Kenya when it was
privatised in 2007 but then sold its stake to London-based Helios Investment
in 2015.

 

Airtel Kenya has previously said the merger would not involve Telkom Kenya’s
extensive real estate holdings and some government contracts for unspecified
services.

 

 

Angolan parliament approves 2020 budget with estimated oil price $55/barrel
- state news agency

LONDON (Reuters) - Angola’s parliament approved a 2020 budget on Thursday
which estimates the average oil price at $55 a barrel, the state news agency
for Africa’s second-biggest oil exporter ANGOP reported.

 

The projection is “a conservative strategy to protect the country if oil
market volatility movements are unfavourable”, the agency cited the budget
as saying.

 

Real GDP growth was predicted to be 1.8% and inflation 24%.

 

 

 

MTN to defend views on data prices if referred to competition tribunal - CEO

JOHANNESBURG (Reuters) - MTN Group will defend its views on recommendations
of the Competition Commission before a Competition Tribunal if the
competition watchdog refers the case, Rob Shuter, chief executive of the
South African telecoms group, said on Thursday.

 

 

Earlier this month, Competition commissioner Tembinkosi Bonakele said
Vodacom and MTN could face prosecution if they do not agree to cut pre-paid
data prices in the next two months.

 

This followed the findings of a data services inquiry launched in August
2017 which showed prices charged by the operators were higher in South
Africa than in other African markets in which they were operating.

 

The same was true when comparing local data costs with those outside Africa,
Bonakele said.

 

Vodacom and MTN say the comparisons are uninformative because cost and
quality differences across countries, including spectrum allocations, may
account for variations in pricing.

 

On pre-paid data pricing, MTN agrees that there is work to be done, Shuter
said in a transcribed investor call on the findings of the commission.

 

“But we have consistently signalled that we are busy with that and we have
made a lot of progress and that it is dependent on allocation of spectrum to
carry traffic cost effectively,” he said.

 

MTN does not support “heavy-handed” regulatory intervention on free data and
zero rating of data, wholesale market and infrastructure sharing, he said.

 

“In the event that we do have a fundamental difference of opinion, the legal
route available to us would be to defend the position in front of the
Competition Tribunal if it is referred by the Competition Commission,”
Shuter added.

 

The group has met with the commission, the regulator and with a number of
the key ministries where it put forward its position and arguments.

 

 

 

South Africa records smaller FDI inflows in third quarter

PRETORIA (Reuters) - South Africa recorded smaller foreign direct investment
(FDI) inflows in the third quarter compared with the second quarter, but
portfolio investment inflows jumped after the government issued
international bonds, central bank data showed on Friday.

 

Africa’s most industrialised economy had FDI inflows of 17 billion rand
($1.16 billion) in the third quarter from inflows of 26.3 billion rand in
the second quarter, the South African Reserve Bank (SARB) said in its
Quarterly Bulletin.

 

The portfolio investment inflows were at 40.2 billion rand from July to the
end of September from inflows of 10 billion rand in the prior quarter,
mainly reflecting the government’s issuance of international bonds of $5
billion, the SARB said.

 

($1 = 14.7075 rand)

 

 

 

What does business want from Boris?

Boris Johnson promised his government would "unleash" the potential of
British business, once he has fullfilled his core campaign promise to "get
Brexit done".

 

But for business leaders, many of whom lobbied against Brexit, the pledge
means that they will soon have to adapt to a more distant relationship with
the UK's largest trading partner. Analysis suggests that new trade deals
further afield are unlikely to compensate for the economic impact of this
shift.

 

And on top of that comes a plan to overhaul immigration policy that will
affect how and who firms can recruit.

 

 

So will the party of Brexit also manage to serve the needs of business? And
what will firms be lobbying for?

 

Brexit:

With an 80-seat majority, there is little doubt that Mr Johnson will be able
to get his Withdrawal Agreement through Parliament, paving the way for the
UK to leave the European Union.

 

The prospect of an end to three years of to and fro over the issue is
welcomed by the deputy director general of the CBI, Josh Hardie.

 

"Just the fact that we have a government with a strong majority and a
mandate actually provides the opportunity to bring a bit more certainty," he
said.

 

But as the prime minister's opponents were at pains to point out during the
election campaign, the UK could still leave the EU without a trade deal at
the end of next year unless a trade deal with the EU can be struck in record
time.

 

Mr Hardie said British businesses would like see maximum alignment with the
bloc, describing a relationship of frictionless trade very similar to EU
membership, but the new government has promised an arms length arrangement,
with the UK outside both the EU single market and the customs union.

 

Mike Cherry, the national chairman of the Federation of Small Businesses,
said Brexit could provide an opportunity for British firms to expand into
other overseas markets such as the US, Canada and Australia. But the UK's
relationship with the EU remains the first item on the agenda.

 

Infrastructure and investment:

Mr Johnson welcomed the election result with a promise to "repay the trust"
of voters in the north of England who swung behind the Conservatives, many
for the first time in their lives.

 

There is an expectation that the previous Conservative government's Northern
Powerhouse plans will get further backing. The Times has suggested the prime
minister could be planning to pump as much as £80bn into projects in key
northern seats in a bid to cement his new voters' support.

 

The government will need to make decisions over costly infrastructure
projects such as HS2

But Jasmine Whitbread, chief executive of the lobby group London First, also
put in a bid for more schemes in the south of England - if the prime
minister has his wallet out anyway.

 

"The Conservative manifesto recognised the role for vital infrastructure in
supporting the economy, from Northern Powerhouse Rail to gigabit broadband.

 

"The Government now should go further and give clear backing to HS2 and
Crossrail 2, as well as reaffirming support for airport expansion at
London's airports, putting in place the key building blocks needed to enable
our regions to grow together."

 

That kind of spending may help boost the UK's flagging growth rates, says
Yael Selfin, chief economist at accountancy firm KPMG.

 

She says "public spending will need to do the heavy lifting" when it comes
to dispelling the cloud of uncertainty around an EU deal but it will take
more than that.

 

"The new government must also turn its attention to some of the longer
standing challenges facing the UK, such as poor productivity and declining
regional opportunities, to help secure a better long term future, while
addressing the challenges and opportunities presented by new technology and
climate change.

 

Immigration:

Mr Johnson has pledged to introduce a points-based immigration system that
would sort migrant workers into three categories.

 

The first tier, entrepreneurs, investors and people who have won awards in
certain fields, would receive fast-track entry under the system.

 

Meanwhile, skilled workers, such as doctors, nurses and other health
professionals, who have a confirmed job offer, would be placed in another
category, with those eligible for an NHS visa also receiving fast-track
entry and reduced fees.

 

For low-skilled or unskilled workers, sector-specific rules would be put in
place, enabling British firms to fill gaps where UK workers cannot be found.

 

But the plans have come under fire from business leaders who have said the
proposed policy is too vague and would affect their ability to plan for the
future.

 

The CBI's Mr Hardie said while a points-based system could work if designed
to respond to the needs of the economy, but more detail would be welcome.

 

Catherine McGuinness, Policy Chair at the City of London Corporation, the
governing body of London's financial district, said Mr Johnson should bear
in mind that services were "the lifeblood" of the UK economy but relied on
"attracting, retaining and developing high quality talent".

 

Business rates:

Boris Johnson has pledged to reform business rates, which have been blamed
for tough times on the High Street, with well-known chains shutting stores
across the country over the past few years.

 

But that could take time, according to Mr Cherry from the Federation of
Small Businesses. Just a review of rates could take up to five years, he
said.

 

At present, business rates are based on the size of a firm's property as
well as revenues, in most cases.

 

But Mr Cherry said the tax was charged "before you even turn over your first
pound, let alone make any profit".

 

Mr Hardie from the CBI said the business rates system was "fundamentally
broken" and urged "radical reform".

 

For many firms, especially in the retail sector, reform of business rates,
which they have been calling for for several years, remains the top
priority.--bbc

 

 

 

COP25: Longest climate talks end with compromise deal

The longest United Nations climate talks on record have finally ended in
Madrid with a compromise deal.

 

Exhausted delegates reached agreement on the key question of increasing the
global response to curbing carbon.

 

All countries will need to put new climate pledges on the table by the time
of the next major conference in Glasgow next year.

 

Divisions over other questions - including carbon markets - were delayed
until the next gathering.

 

What was agreed?

After two extra days and nights of negotiations, delegates finally agreed a
deal that will see new, improved carbon cutting plans on the table by the
time of the Glasgow conference next year.

 

All parties will need to address the gap between what the science says is
necessary to avoid dangerous climate change, and the current state of play
which would see the world go past this threshold in the 2030s.

 

Supported by the European Union and small island states, the push for higher
ambition was opposed by a range of countries including the US, Brazil, India
and China.

 

However a compromise was agreed with the richer nations having to show that
they have kept their promises on climate change in the years before 2020.

 

Huge pressure on UK

Next year's big climate conference will be held in Glasgow, Scotland - and
that heaps enormous pressure on UK Prime Minister Boris Johnson.

 

He's already been warned by environmentalists that he will be "humiliated"
if he tries to lead other nations whilst the UK is still failing to meet its
own medium-term climate targets.

 

The UK's climate advisers warn that tens of millions of homes must be
insulated.

 

Other experts say Mr Johnson's £28.8m road-building plans are not compatible
with eliminating CO2 emissions.

 

They say even fully electric cars won't solve the problem completely - and
urge the government to help people walk and cycle to benefit their health
and the environment.

 

They also say expanding aviation will increase emissions.

 

Mr Johnson's Brexit decisions will play a part too. The US won't discuss
climate change in any trade deal. Meanwhile the EU is putting a border tax
on countries that don't cut greenhouse gases. It will be impossible to
please both.

 

What is the reaction?

UN Secretary General Antonio Guterres said he was disappointed by the
result.

 

"The international community lost an important opportunity to show increased
ambition on mitigation, adaptation and finance to tackle the climate
crisis," he said, quoted by AFP.

 

'Another year of failure'

 

Meanwhile, Laurence Tubiana from the European Climate Foundation, and an
architect of the Paris agreement, described the result as "really a mixed
bag, and a far cry from what science tells us is needed."

 

"Major players who needed to deliver in Madrid did not live up to
expectations, but thanks to a progressive alliance of small island states,
European, African and Latin American countries, we obtained the best
possible outcome, against the will of big polluters."

 

Decisions on other issues including the thorny question of carbon markets
have been delayed until Glasgow.

 

This aspect of the deal was welcomed by campaigners.

 

"Thankfully the weak rules on a market based mechanism, promoted by Brazil
and Australia, that would have undermined efforts to reduce emissions has
been shelved and the fight on that can continue next year at COP26 in
Glasgow," said Mohamed Adow, with the group Power Shift Africa.

 

 

Many of those in attendance were unhappy with the overall package, feeling
it did not reflect the urgency of the science.

 

Spain's acting Minister for the Ecological Transition Teresa Ribera said the
mandate was clear.

 

"Countries have to present more ambitious NDCs [nationally determined
contributions] in 2020 than what we have today because it is important to
address science and the demands of people, as well as commit ourselves to do
more and faster."

 

However, negotiators will be satisfied to have kept the process alive after
these difficult and complex talks in Madrid.

 

What is the evidence for global warming?

The world is now nearly one degree Celsius warmer than it was before
widespread industrialisation, according to the World Meteorological
Organization (WMO).

 

The 20 warmest years on record have all occurred in the past 22 years, with
the years from 2015-2018 making up the top four.

 

The WMO says that if the current warming trend continues, temperatures could
rise by 3-5C by the end of this century.

 

A threshold of 2C had long been regarded as the gateway to dangerous
warming. More recently, scientists and policy makers have argued that
keeping temperature rise to within 1.5C is a safer limit for the world.

 

But an IPCC report in 2018 suggested that keeping to the 1.5C target would
require "rapid, far-reaching and unprecedented changes in all aspects of
society".

 

How will climate change affect us?

There are varying degrees of uncertainty about the scale of potential
impacts.

 

But the changes could drive freshwater shortages, bring sweeping changes to
our ability to produce food, and increase the number of deaths from floods,
storms, heat waves and droughts.

 

Even if we cut greenhouse gas emissions dramatically now, scientists say the
effects will continue because parts of the climate system, particularly
large bodies of water and ice, can take hundreds of years to respond to
changes in temperature.

 

It also takes greenhouse gases decades to be removed from the atmosphere.--

 

 

 

British Steel takeover 'making progress'

The firm due to take over British Steel has said it is confident it will win
approval for the deal in the new year.

 

The statement by China's Jingye comes after a newspaper report suggested the
rescue bid could collapse.

 

Jingye said it was continuing to make progress in securing the necessary
approvals to complete the transaction, following the signing of an agreement
on 10 November.

 

"Any suggestion to the contrary is completely incorrect," it added.

 

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

 

A report in the Sunday Telegraph, quoting Whitehall sources, said the deal
was threatened with collapse and that talks had been reopened with other
potential suitors.

 

However, the government denied that any such talks were taking place.

 

Jingye vows to save jobs after British Steel deal

Why a Chinese firm really bought British Steel

When British Steel collapsed, control of the holding company passed to the
UK Insolvency Service, which is responsible for selling the assets.

 

A government spokesperson said: "On Nov 11 the Official Receiver has ceased
marketing the business and is not talking to any other parties."

 

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

 

Earlier this month, British Steel's French factory at Hayange was advertised
for sale separately from the UK operation, despite Jingye's deal to rescue
the whole company.

 

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

 

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

 

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

 

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.--BBC

 

 

 

Quadriga: Lawyers for users of bankrupt crypto firm seek exhumation of
founder

Lawyers representing users of bankrupt cryptocurrency exchange QuadrigaCX
are asking Canadian authorities to exhume the body of its founder.

 

They say they want an exhumation given "questionable circumstances"
surrounding his death.

 

Gerald Cotten died suddenly last year in India from complications related to
Crohn's disease.

 

Following his death, the exchange was unable to locate or secure significant
cryptocurrency reserves.

 

When he died, the 30-year-old founder was the only person who had passwords
to digital wallets containing C$180 million ($137m; £105m) in
cryptocurrencies.

 

His untimely death forced the closure of QuadrigaCX, which had some 115,000
users at the time.

 

Online rumours have circulated since, speculating that Cotten faked his own
death and sought to abscond with the funds, though no evidence of such a
scheme has been revealed in the year since he died.

 

On Friday, the legal team representing users of the platform in the
bankruptcy proceedings sent a letter to the Royal Canadian Mounted Police
seeking an exhumation and post-mortem autopsy be performed on Cotten's body
"to confirm both its identity and the cause of death".

 

They say information revealed during the proceedings "further highlight the
need for certainty around the question of whether Mr Cotten is in fact
deceased".

 

Earlier this year, a report by auditor Ernst & Young found significant
problems in how the exchange was managed, including finding that Cotten
created certain accounts on the Quadriga platform under aliases that may
have been used to trade on the exchange.

 

It was also found that substantial funds were transferred to Cotten
personally and to other related parties.

 

The auditor managed to retrieve approximately C$33m in missing funds.

 

It confirmed in August it was aware of "at least four independent active law
enforcement or regulatory reviews in progress" related to the platform's
demise, which includes the US Federal Bureau of Investigation.

 

In a statement sent through her lawyer on Friday, Cotten's widow said she
"is heartbroken to learn of this request".

 

Jennifer Robertson said her late husband's death "should not be in doubt",
adding it is unclear how its confirmation "would assist the asset recovery
process further".--BBC

 

 

 

How a university dropout built a toy empire

The BBC's weekly The Boss series profiles different business leaders from
around the world. This week we speak to Nick Mowbray, the co-founder and
co-chief executive of toymaker Zuru.

 

A few years into trying to build a toy business in China, budding
entrepreneur Nick Mowbray got a lucky break - a whiff of interest from
Walmart.

 

The US retail giant wanted to visit Zuru's showroom in Hong Kong. Nick
quickly agreed, and promised to send the address. Now all he had to do was
set-up a showroom.

 

"The next day I'm on a train to Hong, knocking on doors," the 34-year-old
says.

 

It's a story that captures the early days of Zuru - a company the New
Zealander founded with his brother Mat in 2003 - hustling and figuring it
out as they went along.

 

Today the pair, along with their sister Anna, preside over a global firm
that employs 5,000 people, and expects annual sales of $460m (£356m) this
year. The success has made the family one of the wealthiest in New Zealand.

 

It all began back in the brothers' school days. Mat created a hot air
balloon kit - made from a coke can and a plastic bag - which they sold
door-to-door. The teenagers became more serious about the venture and got a
tiny factory going on their parents' dairy farm in rural north island New
Zealand.

 

"As payment we had to milk the cows and spray some weeds," Nick says.

 

At the time, Nick was studying law at university and helping out on the
side. Mat had pulled out of college to focus on toys full-time. Things
rumbled along until one day the brothers made a snap decision. Why not try
their luck in China?

 

So at 18, Nick also dropped out of university and shortly after boarded a
plane to Hong Kong with then 22-year-old Mat. They had "made some contacts
on the internet" but were otherwise vastly ill-equipped - unable to speak
the language and short on business savvy.

 

"We were so naïve, we had no idea what we were doing," says Nick.

 

With a $20,000 loan from their parents, they bought an injection moulding
machine, and set up a small factory in Guangzhou, China. Zuru was up and
running.

 

The next few years were lean and chaotic. Nick recounts a stream of mishaps
that exposed their inexperience, like making products copied from the
internet.

 

"We'd breached all of this IP [intellectual property]. We didn't know what
IP was, or patents."

 

Products had to be pulled in favour of new ones and fresh ideas. Nick would
sit on the phone all night, ringing retailers all over the world, searching
for clients.

 

The Walmart bite helped, and he quickly got a "tiny" showroom up and running
in Hong Kong. All he could afford, it was a far cry from typical toy
showrooms - large, open spaces he later discovered were central to the
industry. That room also became his part-time home as he lived between Hong
Kong and mainland China.

 

"I used to unroll a mattress and sleep under the table," says Nick. "I'd
wash at public bathrooms."

 

He remembers one potential client turning up before he'd risen for the day.
Nick was asleep under the table: "I just had to stay there and stay quiet."

 

Zuru was making money but the products "weren't great," Nick says, and
reorders were slim. But it was enough to get revenues flowing, and Anna
joined the business in 2005.

 

"We did have one month where we lost money, and I remember sitting down with
my brother and sister and saying this is never going to happen again."

 

It was another five years before a robotic fish would deliver their big
break. A Chinese inventor created Robo Fish - an electronic, plastic toy
that moved in water - which Zuru manufactured. It pulled in $100m in annual
sales.

 

"That was when we really had a big hit on our hands. We were in every
retailer in the world, everybody wanted Robo Fish. It gave us all this
momentum."

 

Things sped up. They hired more people in China, and learned how to make
better toys by identifying trends and improving design.

 

Nowdays, the firm's products are sold in 120 countries. Zuru doesn't release
profit figures, but Nick claims it is "one of the most profitable toy
companies in the world".

 

Still, the IP issues that dogged the firm early on haven't totally gone
away, and Zuru is in a legal fight with Lego. The Danish toy giant argues
Zuru has copied the design of certain figurines.

 

"Our products are totally different to Lego," Nick says. "We haven't copied
any of their products. Lego is just litigious, they want to protect their
monopoly."

 

These days Zuru employs about 5,000 workers across its offices and
factories. It's headquartered in Hong Kong, where 38-year-old Mat and Anna,
36, still live. Mat is Zuru's co-chief executive, and Anna is the firm's
chief operating officer. Apart from the initial loan from mum and dad, they
have never taken any outside funding.

 

"Basing themselves in Asia, the siblings realised they needed to be global
from the outset," says Chris Wilkinson, managing director of retail
consultancy First Retail Group.

 

He adds that it is "hard not to admire" the determination of Nick, his
brother and sister.

 

"From subsistence living in Hong Kong during the formative years of Zuru,
while developing and pitching products... this is entrepreneurship at its
best."

 

Nick now mostly lives in Auckland, and also spends time at the NZ$32.5m
($21.4m; £16m) Kiwi rural retreat he bought with his siblings in 2017. Just
north of New Zealand's largest city, the sweeping property was once owned by
internet entrepreneur Kim Dotcom.

 

The family ranks among New Zealand's richest, with a net worth of NZ$3bn,
according to the country's National Business Review.

 

Nick decided to return home in 2018 to confront what he describes his
biggest challenge. Since his mid-20s he's suffered from Crohn's disease, a
condition that causes inflammation of the bowel. Last year he had three
surgeries to remove his large intestine.

 

It was the final option, after nearly a decade of sickness, that drained
Nick of energy and saw him shed around 20kg.

 

Looking back, Nick believes the stress of building a business made his
condition worse.

 

"I was so sick it started attacking my hair follicles. I lost everything,
eyebrows, hair. It was so bad I could barely function. I had to have
surgery."

 

Those surgeries - which he says created a new bowel out of his small
intestine - have been transformative. "It's been amazing. I feel almost back
to 100%."

 

It's energised Nick to start new projects. He launched Zuru Edge, a venture
focusing on consumer products such as nappies, pet food and hair care.
They're sold in markets around the world, with plenty more products in the
pipeline.--BBC

 

 

 

 

 

 

Trump halts new tariffs in US China trade war

The US and China have announced a preliminary trade agreement.

 

The so-called phase one deal will see billions of dollars in tariffs removed
or delayed.

 

US stocks hit a fresh record on hopes there will be a continued softening of
trade tensions between the world's two largest economies.

 

A fresh wave of US tariffs on Chinese imports was due to take effect on
Sunday. However, this has been cancelled for now.

 

"We will begin negotiations on the phase two deal immediately, rather than
waiting until after the 2020 Election," US President Donald Trump said in a
tweet. "This is an amazing deal for all."

 

If the new, higher tariffs had gone ahead, Chinese-made goods such as
smartphones, clothing and toys would have become more expensive for
Americans just ahead of Christmas.

 

US negotiators are reportedly offering to significantly reduce existing
tariffs on about $360bn (£270bn) worth of Chinese imports.

 

In return, China has promised to buy large quantities of US soybeans,
poultry and other agricultural products.

 

The agreement is a deal in principle, which means if China breaks any part
of the agreement, the Trump administration has the ability to re-implement
tariffs.

 

There's some festive cheer for American shoppers and businesses as the
Christmas decorations, game consoles and iphones that were due to be hit
with a 15% tariff are now off the hook.

 

The share of these goods coming from China is around 85%, according to
Bloomberg analysis, which would have made it difficult for companies to
source them from elsewhere.

 

America's business lobby group - the influential Business Roundtable has
long been lobbying against the tariffs, saying they would be very damaging
to the US economy. As the boss of JP Morgan Jamie Dimon put it "it's what
happens to people's psyche and confidence and businesses".

 

The International Monetary Fund estimates that the US-China trade war could
shave almost a percentage point off of global growth this year.

 

But there has been push back from others, such as Trump's trade advisor
Peter Navarro, who feel the US should keep the pressure on what are widely
accepted as China's unfair business practices. Replacing 'trade' with 'aid'
(subsidies) for the American farmers who have suffered since China put
reciprocal taxes on the likes of soybeans.

 

It's worth noting that this 'phase one' deal is just the beginning of the
end. America imports $550bn dollars worth of products from China - and
tariffs will remain on $370bn dollars of that.--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
Faith Capital (Pvt) Ltd for general information purposes only and does not
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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
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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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