Major International Business Headlines Brief::: 04 February 2019

Sun Feb 3 22:31:14 CAT 2019

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Major International Business Headlines Brief::: 04 February 2019

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*  South Africa's Eskom narrows funding gap with $1.1 billion loan

*  All board members at South African state-owned pension fund resign

*  South Africa's Absa PMI falls in January as business activity slips

*  Glencore says 2018 output boosted by restart of Katanga unit

*  Zambia fires CEO of state mining investment arm ZCCM-IH

*  Anadarko signs long-term deal with CNOOC for Mozambique gas

*  South Africa's rand backtracks after Fed surge

*  Sub-Saharan Africa Eurobonds to perform better this year

*  Edcon needs $226 mln over three years to "fix" business -CEO

*  Nissan chooses Japan over UK to build new X-Trail car

*  Brexit: Care home and hospital caterers stockpiling food

*  US economy adds 304,000 jobs in January

*  Trump pushes Foxconn to clarify US plans

*  France puts up food and drink prices under new law

*  Amazon forced to pull products in India as new rules bite

 <mailto:info at bulls.co.zw> 

South Africa's Eskom narrows funding gap with $1.1 billion loan

JOHANNESBURG (Reuters) - South Africa’s struggling state power firm Eskom moved a step closer to narrowing a funding gap for the financial year which ends in March by agreeing a 15 billion rand ($1.1 billion) loan with a local and international banks on Friday.

Eskom is vital to the health of Africa’s most industrialised economy as it supplies more than 90 percent of its power, but it is drowning in around 420 billion rand of debt.

The government-guaranteed loan comes at a time when President Cyril Ramaphosa is trying to turn around Eskom’s finances.

Eskom now only needs to secure around 5 billion rand of funds by the end of March.

“The conclusion of the facility will ensure that Eskom’s liquidity requirements for FY18/19 are timeously fulfilled, which is critical for business operations,” Eskom said in a statement.

Experts hired by Ramaphosa to help revive Eskom have proposed splitting it up to make it more efficient, sources have told Reuters. Analysts expect Ramaphosa to announce his plans for Eskom at a state of the nation address on Feb. 7.

Eskom said on Friday it had already secured 30 percent of its funding needs for the 2019/20 financial year.

($1 = 13.3040 rand)

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All board members at South African state-owned pension fund resign

JOHANNESBURG (Reuters) - The entire board of South Africa’s state-owned state pension fund, the Public Investment Corporation (PIC), resigned on Friday, citing instability at the firm following graft allegations against at least four directors.

“These events have been unbearable to us as individuals,” the board said in a letter to the Finance Minister Tito Mboweni. “It’s for these reasons that we now write to humbly request the Honourable Minister to release us as directors of the PIC.”

South Africa's Absa PMI falls in January as business activity slips

JOHANNESBURG (Reuters) - South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell in January as four out of five measures of factory performance declined, led by slumps in new orders and business activity, the survey showed on Friday.

The index, which gauges manufacturing activity in Africa’s most industrialised economy, slipped to 49.9 in January from 50.7 in December, sliding just below the 50 mark that separates contraction from expansion.

The figure was however 2 points above the 2018 average, a sign the economy, which contracted in the first two quarters of last year, was recovering, although at a moderate pace.

Absa analysts said the results of the survey were mixed, with the decline in the sub-sectors slower than expected and offset by positive sentiment among purchasing managers.

“Respondents may have been relieved that January did not see a return of load-shedding. Furthermore, the seemingly more sustained recovery in demand may also have bolstered optimism,” ABSA said in the release.

State power firm Eskom, which supplies more than 90 percent of the country’s power but is battling to keep the lights on after a decade of financial decline, had warned of possible power cuts in January as demand rose following the December holiday period.

Glencore says 2018 output boosted by restart of Katanga unit

LONDON (Reuters) - Miner and trader Glencore said on Friday cobalt production in 2018 soared 54 percent while copper output rose 11 percent due to the restart of operations in the Democratic Republic of Congo.

The London-listed company stuck to its 2019 production guidance set out in an update to investors in December.

Production of cobalt, used in batteries for electric vehicles, reached 42,200 tonnes in 2018 while copper hit 1.453 million tonnes.

Glencore’s Katanga Mining unit in Congo ramped up in late 2017.

Zambia fires CEO of state mining investment arm ZCCM-IH

LUSAKA (Reuters) - Zambia has fired Pius Kasolo, the chief executive of state mining investment arm Zambia Consolidated Copper Mines Investment Holding (ZCCM-IH), Mines Minister Richard Musukwa said on Friday, without giving a reason.

On Monday, Kasolo said the government should quickly resolve its tax row with mining companies to avoid hitting operations and ZCCM-IH dividends.

Zambia, Africa’s No.2 copper producer, increased its sliding scale for royalties of 4 to 6 percent by 1.5 percentage points from Jan. 1 and introduced a new 10 percent tax when the price of copper exceeds $7,500 per tonne.

Musukwa said on Friday the new tax measures were not meant to stifle mining operations and would not adversely affect the operations of ZCCM-IH.

“I am advised by the board of ZCCM-IH that the CEO Dr Pius Kasolo has been relieved of his duties,” Musukwa said at a joint briefing alongside presidential spokesman Amos Chanda.

ZCCM-IH spokeswoman Louisa Mbata-Kakoma told Reuters the company was preparing a statement on Kasolo’s dismissal.

Zambia also plans to replace value-added tax with a sales tax by April to help bring down mounting public debt.

Mining companies said last month they may lay off more than 21,000 workers due to reduced capital expenditure over the next three years as a result of the new tax measures.

Anadarko signs long-term deal with CNOOC for Mozambique gas

SINGAPORE (Reuters) - Anadarko Petroleum Corp said on Friday a long-term agreement had been signed with the trading division of China’s state-owned offshore oil and gas producer CNOOC Ltd to supply liquefied natural gas (LNG) from Mozambique.

The deal will bring it one step closer to making a final investment decision for its East African LNG project, with the decision expected in the first half of this year.

Mozambique LNG1 Company, the jointly-owned sales entity of the Mozambique Area 1 co-venturers, had signed a sales and Purchase Agreement (SPA) with CNOOC’s gas and power Singapore Trading and Marketing unit, Anadarko said.

The SPA is for 1.5 million tonnes per annum (mtpa) for a period of 13 years.

“This deal gives China’s largest LNG importer access to Mozambique LNG’s world-class gas resources, which are strategically located off the East Coast of Africa, and will provide China with a clean source of energy for years to come,” said Mitch Ingram, executive vice president of Anadarko’s International, Deepwater and Exploration division.

The agreement demonstrates the progress the company is making towards its goal of taking a final investment decision in the first half of this year, he said, adding that the company is expected to announce further SPAs in the near future.

The Anadarko-operated Mozambique LNG project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with total capacity of 12.88 mtpa to support the development of the Golfinho/Atum fields located entirely within offshore Area 1. 

Anadarko Moçambique Área 1, Lda, a wholly owned subsidiary of Anadarko Petroleum Corporation, operates Offshore Area 1 with a 26.5 percent interest.

Other stakeholders include ENH Robuma Area Um, Mitsui E&P Mozambique Area1, ONGC Videsh, Beas Rovuma Energy Mozambique Ltd, BPRL Ventures Mozambique, and PTTEP Mozambique Area 1 Ltd.

South Africa's rand backtracks after Fed surge

JOHANNESBURG (Reuters) - South Africa’s rand weakened early on Friday, giving up some of the ground it gained after a Fed-inspired surge to a six month high, with weak economic data from China dampening risk demand and igniting some profit-taking.

* At 0700 GMT the rand was 0.47 percent weaker at 13.3100 per dollar, slipping back from an overnight close of 13.2475.

* China’s factory activity shrank by the most in almost three years in January as new orders slumped further and output fell, a private survey showed, reinforcing fears a slowdown in the world’s second-largest economy is deepening.* Once the rand broke through resistance at 13.25 some technical selling was triggered, with a close below 13.30 now seen as the next mark needed to trigger further gains, traders said.

* With U.S. employment data due later in the session, and only factory activity due in local data, the rand is set to remain in range for most of the local trade session.

* Bonds were flat, with the yield of the benchmark 10-year bond trading at 8.59 percent.

* Stocks opened weaker, with the Johannesburg Top-40 index down 0.13 percent at 47,893 points.

Sub-Saharan Africa Eurobonds to perform better this year

JOHANNESBURG (Reuters) - Eurobonds from sub-Saharan Africa will perform better this year even though debt levels in some parts of the region are ballooning, as diminishing prospects for further U.S. interest rate hikes support demand, a Reuters poll found.

All but one of 10 analysts surveyed this week said it would be a better year than last, but opinion was split on which country would dominate the overall improvement.

“It is likely that African Eurobonds will offer better returns this year after a negative performance in 2018,” said Samir Gadio, head of Africa strategy at Standard Chartered.

“This probably reflects their high-yield status, cheap valuations at the end of 2018 and lighter investor positioning at the time.”

The U.S. Federal Reserve on Wednesday signalled its three-year drive to tighten monetary policy may be at an end amid a suddenly cloudy outlook for the U.S. economy, an announcement that could support investor interest in Africa’s debt market.

Nigeria’s 30-year $460 million Eurobond, issued in November as part of a $750 million fundraising, currently yields a healthy 8.169 percent.

In a positive sign for the region, investment bank JPMorgan raised its exposure to emerging market local bonds and currencies after the Fed shifted to a more dovish stance.

Aly-Khan Satchu, head of Rich Management in Nairobi, said a lot depends on the Fed’s rate trajectory. The U.S. central bank held interest rates steady on Wednesday and discarded its promise of “further gradual increases”, instead saying it would be “patient”.

Top African crude exporters like Nigeria and Angola have suffered in recent years from oil price weakness that has curbed into much-needed revenues and exposed weaknesses at state-owned companies.

The poll listed Angola, Nigeria and even heavily-indebted Zambia as places to look for value in 2019 after a year of disappointing returns for net oil exporters compared with importers on the continent.

Nigeria raised $2.86 billion in Eurobonds three months ago to help fund its budget deficit, in a sale that was three times oversubscribed.

Angola, Africa’s second-largest crude producer is sizing up a shot at the bond market after securing an International Monetary Fund deal.

Oil prices averaged just over $100 per barrel in the first half of the past decade but fell to half that from mid-2014.

A Reuters survey on Thursday forecast Brent crude oil futures to average $67.32 a barrel this year, down from $69.13 projected in December. [O/POLL]

Analysts said African Eurobonds had already posted impressive returns early this year and were generally performing better than other emerging markets.

But even if U.S.-China trade talks yield positive results and better risk sentiment, Gadio warned that tighter spreads and supply pressure could constrain bond gains later this year.

Kenya is planning to issue a bond to help fund its 2018-2019 budget deficit. A banking source valued it at $2.5 billion.

Ivory Coast is planning to raise up to 1.4 trillion CFA francs ($2.5 billion) this year on regional and international markets.

“Investors will likely look for pockets of relative value in countries that still trade relatively wide to immediate peers and/or have room to outperform. This appears to include Nigeria, Cote d’Ivoire and Cameroon,” said Gadio.

Angola, Kenya and Mozambique were cited in the poll as likely borrowers this year, adding to their already hefty debt burdens, followed by the Republic of Congo and Zambia.

($1 = 566.2500 CFA francs)

Edcon needs $226 mln over three years to "fix" business -CEO

JOHANNESBURG (Reuters) - South African retailer Edcon needs 3 billion rand ($226 million) in funding over the next three years to “fix” the business, its chief executive Grant Pattison said on Thursday.

Edcon has been grappling with an over-leveraged capital structure for several years, after troubles in its credit business in 2014 coincided with an economic slowdown and weak consumer spending at home.

($1 = 13.2516 rand)

Nissan chooses Japan over UK to build new X-Trail car

Nissan has confirmed that the new X-Trail originally planned for its Sunderland plant will instead be made in Japan.

In a letter to workers, it says continued Brexit uncertainty is not helping firms to "plan for the future".

In 2016 the carmaker said it would build the new model in the UK after "assurances" from the government.

Unions described the news as "disappointing" and said they were "seriously concerned".

The government said it was "a blow to the sector" but that no jobs would go as a result.

Nissan has made cars at Sunderland since 1986 and employs almost 7,000 people.

Cost reduction

Nissan said it had decided to "optimise its investments in Europe" by consolidating X-Trail production in Kyushu, which was the production hub for the model.

The firm's Europe chairman, Gianluca de Ficchy, said: "Nissan is investing heavily in new technologies and powertrains for the next generation of vehicles in our Sunderland plant.

"To support this, we are taking advantage of our global assets, and with X-Trail already manufactured in Japan, we can reduce our upfront investment costs."

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Carmakers fear rising trade barriers after Brexit

Mr de Ficchy said the news would be "disappointing" to its UK team and partners, but that the workforce in Sunderland had the company's "full confidence".

"While we have taken this decision for business reasons, the continued uncertainty around the UK's future relationship with the EU is not helping companies like ours to plan for the future," he added.

A number of carmakers, including Jaguar Land Rover, Toyota and Vauxhall, have expressed fears of disruption to their supply chains in the event of a no-deal Brexit.

UK production

Business Secretary Greg Clark said: "Nissan's announcement is a blow to the sector and the region, as this was to be a further significant expansion of the site and the workforce.

"The company has confirmed that no jobs will be lost. They have reiterated today their commitment to the UK by continuing to manufacture in Sunderland the current Qashqai, Leaf and Juke models and the new Qashqai model from 2020."

Unite's acting national officer for the car sector, Steve Bush, said: "This is very disappointing news for Sunderland and the North East and reflects the serious challenges facing the entire UK auto sector."

He added that the union remained "seriously concerned" that "the apprenticeships and additional jobs that come with future investment and which this community so desperately needs will be lost".

Sunderland Central MP Julie Elliott said the move was "devastating news for our city and the region".

She added: "The uncertainty around Brexit is always a factor now in any decisions made in manufacturing."

Labour leader Jeremy Corbyn said: "The Conservatives' botched negotiations and threat of a no-deal Brexit is causing uncertainty and damaging Britain's economy."

Analysis: The factors behind Nissan's decision

By Rob Young, BBC business reporter

There's been a run of bad news from the car industry in recent months.

Job losses have been announced at Jaguar Land Rover and Ford and the cancellation of Nissan's X-Trail investment at its Sunderland plant is just the latest disappointment from a sector that was booming a few years ago.

There are many who want to say this is all down to Brexit. But it's not.

Declining car sales in China, the world's biggest car market, have unnerved the industry worldwide. As have falling car sales and an economic rough patch in Europe.

There are questions over whether diesel technology has a future after governments, who pushed it hard until a few years ago, and drivers, who previously liked its fuel efficiency, have become less keen on it.

In the UK, this is all set against the backdrop of Brexit uncertainty.

The car industry has long been worried about potential changes to trading rules after the UK leaves the EU. They're nervous about border taxes and customs delays disrupting their just-in-time model of manufacturing.

Nissan has been clear the decision to cancel its Sunderland X-Trail investment is a commercial decision. But it chose to say "continued uncertainty" around the UK's future relationship with the EU "is not helping" it plan for the future.

Big businesses tend to stay out of politics.

So Nissan's decision to highlight Brexit means it is clearly a concern in the minds of company executives.

Conservative Brexiteer Jacob Rees-Mogg said Nissan had "all sorts of problems that are nothing to do with Brexit", including "very considerable corporate governance problems" arising from ex-chairman Carlos Ghosn's arrest.

Production of the Qashqai - the best-selling crossover vehicle in Europe - makes up the majority of the current work at Sunderland.

There had been concerns that Nissan - part-owned by France's Renault - could move production to France in future to avoid any post-Brexit EU tariffs.

But when the X-Trail investment was initially announced, Nissan said hundreds of jobs would be created at the Sunderland plant.

It sparked questions over whether a deal between the carmaker and the government had been struck, although ministers insisted that no "financial compensation" had been offered.--BBC

Brexit: Care home and hospital caterers stockpiling food

Major suppliers to care homes and hospitals are stockpiling food to offset the potential disruption of a no-deal Brexit.

Apetito and Bidfood, who between them supply thousands of care providers, said they were holding extra inventory in case of supply chain problems.

Both said they were prepared but Apetito said it feared others were not.

"We are in a strong position," said Apetito UK boss Paul Freeston.

"But some firms would not be able to build up big stocks," like his firm, he said. "Or if they are doing fresh produce they would have to stop. A Hard Brexit could cause them significant economic difficulties."

Magnum ice creams stockpiled ahead of Brexit

Record stockpiling at factories over Brexit

Apetito provides pre-made meals to more than 400 hospitals and 450 care homes, as well as 100,000 vulnerable people in their homes.

Mr Freeston said it was spending £5m in building its inventory ahead of Brexit - doubling the raw materials it holds from four to eight weeks' of stock and pre-made meals from five to six weeks'.

But if the disruption lasted much longer than 12 to 16 weeks, the firm would have "very real difficulties", because it supplies specialist food for elderly people and those with critical conditions.

But if there are backlogs at UK ports in the event of a no-deal, "the quality of food could suffer and our product range would really narrow", Mr Freeston said.

The other worry is that if the UK suddenly started trading on World Trade Organisation terms with the EU, the cost of raw materials could jump - and Britain imports about a third of its food from the bloc.

The concerns are shared by Bidfood, which supplies the kitchens of 4,000 care homes and 950 hospitals across the UK, as well as supermarkets, schools and prisons.

Jim Gouldie, its supply chain and technical services director, said the firm had "looked carefully" at products needed by sectors with a "duty of care" and invested in additional warehousing.

Meanwhile Anglia Crown, which manufactures meals for 100 hospital sites, told the BBC it was worried about prices rising after Brexit. A spokeswoman said the company was agreeing prices for "as many commodities as possible, especially any bought in from Europe".

Are providers secure?

Despite the warnings, the National Care Association said most of the care homes it represents are prepared for any no-deal disruption and have enough food stocks in place - even if that means relying on dried or canned food to carry them through.

But boss Nadra Ahmed is worried that any price shocks to suppliers could end up being passed on to providers.

"Care providers are struggling with funding and recruitment issues already so any increases will increase the challenges they face."

The Hospital Caterers Association (HCA), which represents hospital catering companies, says most of his members have been preparing for Brexit for some time. And while he is not overly worried about a no deal, he does expect some short term volatility after Brexit.

"A number are making arrangements to increase their stock holding - either on site or by securing commitments from their long-established suppliers," he says.

"But this clearly is not possible for perishable goods. It is imperative that we ensure continuity of supply to minimise any potential disruption to patients' menus."

A government spokesperson said: "Our priority is to make sure that patients continue to receive the same high standard of care.

"We are working closely with the NHS, Defra and healthcare providers to ensure the uninterrupted supply of food and specialised nutritional products to patients, as part of our preparations for a no-deal EU Exit."--BBC

US economy adds 304,000 jobs in January

The US economy added a stronger-than-expected 304,000 jobs in January, official figures have shown.

The figure was far in excess of economists' forecasts of 165,000.

However, December's jobs growth figure was revised to 222,000, down from an initial estimate of 312,000.

Last month saw jobs being added in leisure and hospitality, construction, health care, transportation and warehousing, according to the US Department of Labor.

The widespread gains marked the 100th month in a row of hiring.

They were a reminder of the economy's continued strength, despite rising concerns about factors such as slowing global growth, trade tensions, and recent dips in consumer confidence.

"This is a solid report, particularly given how worried people were," said Gus Faucher, chief economist at PNC Bank.

Hiring demand

The unemployment rate in January ticked up from 3.9% to 4% - a gain the Labor Department said was due to the partial shutdown of the federal government.

How much has the shutdown hit the US economy?

US shutdown: Four reasons why Trump blinked

The shutdown was also likely to have contributed to a surge in part-time workers last month, the Labor Department said.

Overall, however, job creation in the US remains healthy - and well above the roughly 100,000 additions per month need to keep pace with growth in the working-age population.

US employers added an average of 223,000 jobs per month in 2018.

Separate surveys have also found more job openings than unemployed.

"A lot of businesses feel like they do need to find workers and they have felt that way for months," Mr Faucher said.

"We have consumers spending, we have businesses investing, so the demand is there."

Wage pressure

The Federal Reserve this week pledged to be "patient" about further rate rises, noting that inflation pressures remain muted.

But the tight labour market has started to translate into higher wages.

The average hourly pay for private sector workers was $27.56 last month, up 3.2% year-on-year.

That was slightly slower than December's 3.3% rise. But it still marked one of the strongest year-on-year increases for any month since the financial crisis.

Analysts said January's gains do not put immediate pressure on the bank to raise rates.

But several economists said the bank is likely to increase rates later in 2019, if trends continue.

"This is a strong report, showing that labour demand continues to rise rapidly, and that wage gains continue to grind higher," said Ian Shepherdson, chief economist of Pantheon Macroeconomics.

"If wage gains rise over the next year as much they have over the past year ... the idea that the Fed won't hike further will turn to dust."--BBC

Trump pushes Foxconn to clarify US plans

US President Donald Trump has intervened following news that Foxconn was adjusting the focus of its new factory in Wisconsin.

Foxconn had said it was considering a high-tech research hub for the site, earlier planned for making LCD panels.

That news was seen as a setback for Mr Trump, who has made reviving the manufacturing sector a priority.

But Foxconn said on Friday it would move forward with its planned construction of a plant.

The decision followed "productive discussions with the White House and the company" and a "personal conversation" between the president and Foxconn chairman Terry Gou, it said.

Mr Trump has repeatedly touted Foxconn's investment in Wisconsin - a politically important state - as proof his economic policies are working.

He celebrated the statement on Twitter as "great news".

Plans for a plant that produces smaller displays - reported last summer - already marked a step back from the original announcement.

On Friday, Foxconn did not go into detail about the plans for the plant or what kind of workers it intended to hire.

"This campus will serve both as an advanced manufacturing facility as well as a hub of high technology innovation for the region," it said.

Foxconn had said earlier this week that it remained committed to its investment in Wisconsin, which had been celebrated for its potential to create up to 13,000 jobs.

It said it was adjusting its focus due to "new realities" in the global market environment and outlined plans to build a packaging plant; a high precision molding factory and an assembly facility, among other projects.

Controversy

The White House-backed project is controversial due to billions in incentives approved for the company.

Even under optimistic projections, an analysis for Wisconsin state lawmakers found it would take more than 25 years for the state to break even on the deal.

Receipt of the incentives depends on the firm's investment and hiring, which has already fallen short of early goals.

Local officials on Friday said they expected Foxconn to begin work on the manufacturing facility in the next 18 months.--BBC

France puts up food and drink prices under new law

Nutella, Président Camembert, Ricard Pastis and Carte Noire coffee are among the brands set to cost more in France as a law on food prices takes effect.

It means big food and drink brands can no longer be sold at cost price. Shops' profit margin must be at least 10%.

But many shops' own-brand products are expected to get a bit cheaper. Such goods often come from smaller firms.

The government aims to help smaller producers but France has continuing yellow-vest protests over prices.

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Who are the 'gilets jaunes'?

Nutella 'riots' spread across France

There are doubts about whether the new law will actually work as hoped.

How much of a price rise?

The 10% margin threshold means a food or drink brand previously sold for €1 (£0.88; $1.1) now has to be priced at €1.1 minimum.

But there will not be uniform price increases, French media report. The law affects supermarkets and hypermarkets more than small local shops.

That is because the big outlets offer some popular brands at or near cost price, slashing their margins on those products, in order to lure customers, in a fierce price war. Their profits depend on big volume and high turnover.

Small shops, however, cannot match the supermarkets' low margins.

Supermarket chain Carrefour is adapting to the law by increasing discounts for loyalty card customers.

Carrefour expects to raise prices by 35 euro cents on average, which is 5%. It says 1,000 food and drink brands are affected, out of 25,000 on sale.

A big retailer which has already raised prices gave the daily Le Parisien a list of brands affected, while requesting anonymity. Among the price rises are:

Président Camembert (up 8.6%)

Ricard Pastis (aniseed liqueur - up 9.9%)

Nutella (up 8.4%)

Carte Noire coffee (up 4.4%)

Coca-Cola (up 5%)

Hypermarket chain E Leclerc said it was raising prices by 3% on 1,000 brands.

Agriculture Minister Didier Guillaume said "the aim is to sell agricultural goods for what they're worth". He stressed that meat and fish prices would be unaffected.

He said that in supermarkets, in general, prices would go up on 500 out of 13,000 products, and in hypermarkets on 800 out of 20,000 on sale.

Why is the law controversial?

The government hopes that by making shops pay more to their suppliers - the wholesalers - the latter will pay more to French food and drink producers. That is because the wholesalers' income should increase as consumers pay higher prices for certain brands.

But millions of French consumers are angry about the cost of living, so there is a risk for the government. It is already struggling to contain often violent "gilets jaunes" (yellow vest) protests.

The protests were sparked by a fuel price hike last year - later cancelled by President Emmanuel Macron - but soon the "gilets jaunes" movement morphed into a wider protest against economic hardship.

For months there have been big weekend protests by the yellow vests across France. Another one is planned for Saturday.

Mr Macron has tried to reach out to the protesters. He told journalists on Thursday: "If to be a yellow vest means you want work to pay more and parliament to work better - well then I'm a yellow vest."

Which consumers are most affected?

The French consumer rights group UFC Que Choisir voiced scepticism about the new law.

One of its researchers, Mathieu Escot, said smaller shops like the Monoprix chain in Paris would not put up prices, because their margins were already above 10%.

But he noted that "gilets jaunes" protesters were frequent shoppers at the big supermarkets and out-of-town stores, where prices would go up.

"So it's French people on more modest incomes, with weak purchasing power, who will pay," he argued.

The law "does not oblige" food and drink wholesalers to pay more to French rural producers, he said.

A big agricultural union, Confédération paysanne, told the daily Libération "there is no clear incentive to ensure a return to producers and boost their income".--BBC

Amazon forced to pull products in India as new rules bite

Amazon has been forced to remove an array of products from its website in India to comply with new regulations.

The rules prevent online retailers from selling products through vendors in which they hold an equity stake.

The regulations are expected to have a far-reaching impact on India's e-commerce sector, which has drawn billions in foreign investment.

Amazon and Flipkart lobbied against the laws which aim to protect small businesses.

The changes to foreign direct investment rules, which come into force on 1 February, also stop online retailers from making deals to sell exclusively on their platforms.

*         Amazon sparks fears with sales forecast

*         Walmart wins battle for Flipkart

*         Amazon launches Hindi version of website

Small retailers in India have long pushed for tougher competition rules, arguing the major players have an unfair advantage.

But Amazon and Walmart, which owns a majority stake in locally-grown platform Flipkart, both lobbied against the new rules.

Products have started to disappear from Amazon, as it scrambles to comply with the new rules.

Clothing from Indian department store chain Shopper's Stop was also no longer available, as Amazon owns 5% of the company.

Amazon's own range of Echo speakers, its Presto-branded home cleaning goods and other Amazon Basics products such as chargers and batteries had also disappeared.

Brian Olsavsky, Amazon's chief financial officer, said on a call with reporters, the "situation in India is a bit fluid right now."

Nevertheless, he said the country "remains a good long-term opportunity" for Amazon.

Amazon has committed to spending $5.5bn (£4.2bn) on e-commerce in India, while its competitor the US retailing giant Walmart has invested $16bn into Flipkart.

Flipkart expressed disappointment with new rules but said it would comply.

"We believe that policy should be created in a consultative, market-driven manner and we will continue to work with the government to promote fair, pro-growth policies," chief of corporate affairs Rajneesh Kumar said in a statement.

Traders 'satisfied'

Many small traders say the e-commerce giants use their buying power and control over inventory from affiliated vendors to create an unfair marketplace.

The Confederation of All India Traders expressed "deep satisfaction" over the introduction of the rules, calling them a "strong step to clean the greatly vitiated e-commerce market" in India.

But the group wants the government to go further by forming a new regulatory authority and a "special investigation team" to look into the business models of major e-commerce players.

The sector, which includes an estimated 25 million small store owners, largely supported Prime Minister Narendra Modi in the 2014 general election.--BBC

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Nampak

AGM

68 Birmingham Road, Southerton

06 Feb 2019 - 12pm

Ariston

AGM

Royal Harare Golf Club

19 Feb 2019 - 2:30pm

Zimbabwe

Robert Mugabe National Youth Day

Zimbabwe

21 Feb 2019

Powerspeed

AGM

Boardroom, Gate 1, Powerspeed Complex, Graniteside

28 Feb 2019 - 11am

Zimbabwe 

Independence Day

Zimbabwe

18 Apr 2019 

Good Friday

19 Apr 2019

Easter Saturday

20 Apr 2019

Easter Sunday

21 Apr 2019

Easter Monday

22 Apr 2019

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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