Major International Business Headlines Brief::: 08 February 2019

[Bulls n Bears]

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Major International Business Headlines Brief::: 08 February 2019

 


 

 


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*  Total's South Africa discovery could hold 1 bln barrels oil equivalent: CEO

*  Total CEO: need to tame "Lake Albert Crocodiles" to move Uganda project in 2019

*  Staff picket HQ of South Africa's Eskom over potential job cuts

*  WeWork picks South Africa for first African foray

*  Botswana sees budget surplus in 2020 - finance minister

*  Cannabis craze weeds out junior mining field

*  Radisson Hotel Group to step up expansion in Africa

*  Nigerian court adjourns MTN case until Mar. 26

*  Uganda central bank holds its key lending rate at 10 pct

*  Transnet in talks to construct coal line link to Botswana

*  Jeff Bezos: Amazon boss accuses National Enquirer of blackmail

*  Woody Allen sues Amazon for dropping A Rainy Day in New York

*  Twitter shares drop 10% as revenue outlook disappoints

*  Bank forecasts worst year for UK since 2009

*  Jaguar Land Rover posts £3.4bn loss as China demand slips

*  Thomas Cook considers sale of airline

 

 

 


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Total's South Africa discovery could hold 1 bln barrels oil equivalent: CEO

PARIS (Reuters) - French oil and gas major Total’s South African offshore discovery could contain 1 billion barrels of total resources and is “probably quite big”, Chief Executive Patrick Pouyanne said on Thursday.

 

Total said it had made a significant gas condensate discovery after drilling its Brulpadda prospects on Block 11B/12B in the Outeniqua Basin.

 

“It is gas condensate and light oil. Mainly gas. There are four other prospects on the licence that we have to drill; it could be around 1 billion barrels of total resources of gas and condensate,” Pouyanne said.

 

The Brulpadda well encountered 57 metres of net gas condensate in Lower Cretaceous reservoirs. The well was extended to a final depth of 3,633 metres and has also been successful.

 

“With this discovery Total has opened a new world-class gas and oil play and is well positioned to test several follow-on prospects on the same block,” Total’s senior vice president for exploration, Kevin McLachlan, said in a statement.

 

Africa’s most industrialised economy, which imports most of its refined petroleum products and crude oil, welcomed the announcement.

 

“It is potentially a major boost for the economy,” mineral resources minister Gwede Manthashe said in a statement.

 

South Africa wants to build its gas network and has previously mentioned the possibility of importing LNG from Mozambique, where a gas pipeline already supplies most of the gas South Africa uses to power its industrial heartland in the north.

 

The proximity of the find to Mossel Bay’s gas-to-liquid plant is also a boon, said national oil and gas company PetroSA.

 

“We potentially could be supplied by Total with gas and condensate, which means the GTL refinery can be ramped up ... it is currently running below 50 percent of its design capacity,” said PetroSA acting CEO Bongani Sayidini.

 

Brulpadda is one of several high-profile exploration prospects for Total. Which has said the field could hold between 500 million to more than 1 billion barrels of oil equivalent.

 

After the confirmation of Brulpadda’s potential, Total and its partners plan to acquire 3D seismic data this year, followed by up to four exploration wells on the licence, the company said.

 

Total has a 45 percent working interest and is the operator of Block 11B/12B, which covers an area of 19,000 square km.

 

Other partners include Qatar Petroleum, CNR International and Main Street, a South African consortium, holding 25 percent, 20 percent and 10 percent stakes respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 



Total CEO: need to tame "Lake Albert Crocodiles" to move Uganda project in 2019

PARIS (Reuters) - French oil and gas major Total’s chief executive said on Thursday that the firm’s Ugandan Lake Albert oil project will be a personal priority this year after setbacks led to a delay on a final investment decision (FID) in 2018.

 

Patrick Pouyanne said during an earnings call that he remained optimistic about the project after several meetings with Uganda’s President Yoweri Museveni and aimed to ready it for clearance.

 

The project, which was expected to have been cleared last year, has been delayed due to disagreements over field development strategy, tax disputes and a lack of infrastructure such as a refinery or export pipeline.

 

“There are many crocodiles in Lake Albert, we need to domesticate the crocodiles before we move forward,” Pouyanne quipped during the call, alluding to various difficulties in getting the project off the ground.

 

“It is a difficult project because it is landlocked. It is a new country to oil, we have to create everything,” he said.

 

Several sticking points have been resolved including a refinery and pipeline issue. Project engineering has been done and some tenders have been issued and prices in terms of costs are acceptable, Pouyanne said.

 

Total is developing Uganda’s first oilfield with China’s CNOOC. Production at the estimated 230,000 barrels per day project was expected to start in 2021.

 

 

Staff picket HQ of South Africa's Eskom over potential job cuts

JOHANNESBURG (Reuters) - Several dozen employees of South African state power firm Eskom picketed the firm’s headquarters on Wednesday protesting against potential job cuts and a proposal to split up the ailing company.

 

Eskom, which supplies more than 90 percent of the power in Africa’s most industrialised economy, is struggling with around 420 billion rand ($31 billion) of debt and fighting for survival.

 

Analysts expect South African President Cyril Ramaphosa to say how he plans to turn around Eskom at a state of the nation address on Thursday.

 

A task team appointed by Ramaphosa to advise him on ways to save Eskom has proposed splitting it into different entities for generation, transmission and distribution, sources have told Reuters.

 

“There was a lunchtime picket by some Eskom employees who demanded to be briefed by management on the reported potential unbundling of Eskom and also rumours of potential job cuts,” Eskom spokesman Khulu Phasiwe said.

 

He added that Chief Operating Officer Jan Oberholzer had urged the workers to await the state of the nation address to hear what interventions the government would announce to assist Eskom.

 

Videos of the picket shared on social media showed several dozen Eskom staff, some in red T shirts emblazoned with the logos of trade unions, dancing and singing during the protest at the company’s Megawatt Park headquarters in Johannesburg.

 

Unions have said they are opposed to splitting Eskom, arguing that it is part of a plan to privatise the company and that it will lead to large-scale job losses.

 

($1 = 13.5506 rand)

 

 

 

WeWork picks South Africa for first African foray

JOHANNESBURG (Reuters) - U.S. shared workspace provider WeWork plans to launch in South African later this year, it said on Thursday, a move that would mark the first African expansion for the $47 billion New York-based company.

 

The firm, backed by Japan’s SoftBank Group Corp, will team up with Redefine Properties, one of South Africa’s biggest real estate companies, in opening its first location in the upmarket Johannesburg suburb of Rosebank in the third quarter of the year.

 

“Expanding here is an obvious choice for us: it’s our first location in Africa and, with its global outlook, South Africa is the gateway to the rest of the continent, so we’re excited to welcome new members and grow our community here,” Managing Director Eugen Miropolski said.

 

WeWork leases office spaces and sublets them out to individuals and start-ups - a model that creates a mismatch between its erratic income stream from clients who can rent for as little as month and the fixed rent it has promised to landlords.

 

However, in South Africa, WeWork will sign a revenue-sharing lease with Redefine, which broadly means the rent would depend on the revenue it generates from subletting the space, a source familiar with the matter said.

 

The model is being rolled out to landlords, and is expected to become increasingly common for the company, the source said.

 

Miropolski also said WeWork had no immediate plans to expand elsewhere on the continent.

 

“We’re looking to expand our footprint across Africa, and we’re very excited about the potential here, But right now, we’re fully focused on launching in Johannesburg and building our local community,” he said.

 

In its first release of financial results in August, the privately held firm reported a net loss of $723 million for the first half of 2018 versus $154 million a year earlier.

 

 

 

Botswana sees budget surplus in 2020 - finance minister

GABORONE (Reuters) - Botswana plans to swing back to a budget surplus in 2020 after three straight years of deficits, Finance minister Kenneth Matambo said on Thursday.

 

The diamond-producing southern African country expects a budget deficit this year estimated at 3.5 percent of gross domestic product (GDP), the same as 2018’s estimated shortfall, Matambo had said in his budget speech on Monday.

 

On Thursday, Matambo told a media briefing that the 3.5 percent deficit for 2019 which amounts to 7 billion pula ($667.80 million) will be financed from borrowing from the local or outside markets as well as drawing down of cash reserves.

 

“We have had three years of budget deficits and this was a deliberate move to try and boost the economy,” he said.

 

“Through a combination of expenditure control and expansion of revenue sources, including widening of the tax base we plan to return to modest surpluses in the financial year beginning April 2020.”

 

Matambo also said China has agreed, in principle, to lend 10 billion pula to Botswana for capital projects, a facility which he said would not expose the country to any debt distress.

 

“We have not signed yet but they have agreed to lend us the money, which will be useful when it comes. Concerns have been raised about African countries getting loans from China, but I want to clearly say that I have got not issues with getting money from China’s long as the terms are right,” he said.

 

Botswana has forecast that economic growth would slow to 4.2 percent in 2019 from an estimated 4.5 percent in 2018.

 

Matambo said the sluggish  projections are based on the expected performance of the minerals sector, which he said is heavily reliant on the global economy.

 

“The projection of lower growth is a reflection of what we expect to happen in the global economy, whose growth is slowing. One of the biggest contributors to our economy is the minerals sector and this is highly dependent on the happens in the global economy,” he said.

 

Botswana, which produced 24.1 million carats of diamonds in 2018, sees mineral revenue as the highest contributor to the budget at to 35.62 percent of total revenues.

 

($1 = 10.4822 pulas)

 

 

 

Cannabis craze weeds out junior mining field

CAPE TOWN (Reuters) - A boom in cannabis investment is siphoning capital away from mining and hitting junior miners hardest, forcing them to up their game and potentially improving the quality of projects in a sector long rife with cowboy speculators.

 

Canada’s relaxation of cannabis laws culminated in legalisation for recreational use in October. Other jurisdictions are following suit or liberalising their laws on medical or health use, creating an industry that has lured a breed of high-risk, high-return investors.

 

The world’s top three listed cannabis companies - Canopy Growth, Tilray and Aurora Cannabis - have a combined market value of around $30 billion. And consumers are expected to spend over $7 billion on cannabis products in Canada alone this year, according to Deloitte.

 

In Africa, where miners met this week for Cape Town’s African Mining Indaba conference, cannabis companies are setting up projects in Lesotho, while other countries, including Zimbabwe and South Africa, plan to issue licences.

 

“Raising money is extremely difficult,” said Patrick Downey, head of Canadian junior gold exploration company Orezone Gold, who compared the cannabis boom to the headwinds juniors faced during the dot-com bubble of the late 1990s.

 

“It’s a cyclical business, and it will come back,” Downey said. “But you have to have a good project.”

 

The rise of cannabis comes at a time when investors were already turning away from mining.

 

“The biggest problem in mining is that it destroys shareholder value,” said Philip Hopwood, Deloitte’s global mining and metals leader.

 

Miners operating in Africa - already viewed by many investors as a particularly risky bet - have been doubly hit.

 

“It’s like the straw that broke the camel’s back,” said one explorer at the Indaba.

 

SURVIVAL OF THE FITTEST

As early IPOs, once a right of passage for exploration juniors, have slowed to a trickle with cannabis stocks delivering better short-term returns, miners are increasingly turning to private equity.

 

And as active investors replace passive stockholders, companies are having to sell the merits of their projects to more discerning potential backers.

 

Sebastien de Montessus - chief executive of Endeavour Mining, one of the most successful mid-tier gold players - considers it a process of natural selection.

 

“It’s a good thing ... You’re going to have to be stronger and better,” he told Reuters in an interview at the Indaba.

 

The CEO of Barrick Gold, one of the world’s biggest gold companies, said mining’s struggles to fend off the challenge from cannabis reflected the poor state of the industry in the eyes of prospective investors.

 

“We should be embarrassed that somebody is prepared to make a choice between those two options,” Mark Bristow told Reuters. “(Mining) is just so fundamentally material to our everyday lives, whereas I can’t say the same of cannabis.”

 

Majors such as Barrick and companies with projects already in production can better weather the storm.

 

The newest juniors in the riskiest areas are racing to adapt. And some are getting creative.

 

Prospect Resources’ executive director Harry Greaves on Wednesday won an award at the Indaba for his lithium project in Zimbabwe.

 

He said Australian and Chinese investment had helped. And he was also considering growing cannabis at his lithium site on the outskirts of Zimbabwe’s capital Harare.

 

“We don’t yet have a marijuana licence, but we have the land available,” he said.

 

 

Radisson Hotel Group to step up expansion in Africa

RABAT (Reuters) - Radisson Hotel Group plans to operate 130 hotels in Africa by 2022, up from 50 this year as it seeks to reinforce its foothold on the continent, the company said in a statement on Thursday.

 

Global hotel chains, including Marriot International and Hyatt Hotels have been increasing investments in Africa, which has some of the world’s fastest growing economies and a rising middle class.

 

Radisson said it planned to open five more hotels this year in Algeria, Morocco’s Casablanca, Guinea’s capital Conakry, Niamey in Niger and Nairobi in Kenya.

 

“Our strategy will most certainly reinforce our presence in key markets not only in the Francophone markets, but across Africa, as we continue to focus on delivering on our expanding pipeline,” Ramsay Rankoussi, Vice President, Development, Middle East, Turkey and French Speaking Africa said in the statement.

 

After rebranding last year from Carlson Rezidor Hotel Group, the company introduced new brands in Africa including the Radisson Collection as a premium lifestyle and affordable luxury offer and Radisson as the upscale hotel brand.

 

 

 

Nigerian court adjourns MTN case until Mar. 26

LAGOS (Reuters) - A judge has adjourned a Lagos court case between South African telecoms firm MTN Group and Nigeria’s attorney general over a $2 billion tax demand until Mar. 26, the court said on Thursday.

 

MTN faces the demand from the country’s attorney general, a claim which the company has said is without merit. Nigeria handed MTN the tax bill in September, but the company said the attorney general had exceeded his powers in making the demand.

 

 

 

Uganda central bank holds its key lending rate at 10 pct

KAMPALA (Reuters) - Uganda’s central bank held its benchmark lending rate at 10 percent for the second time in a row on Thursday, citing subdued inflation, the bank’s governor said.

 

Policymakers raised rates for the first time in three years last October, citing concerns about rising inflationary pressures. They subsequently left them unchanged at their December meeting. [nL8N1YA26F]

 

Economic growth was on a steady path, with output slightly ahead of the economy’s potential, Governor Emmanuel Tumusiime-Mutebile told a news conference.

 

“The inflation outlook in the intermediate period has improved, largely driven by a relatively stronger shilling and a good crop harvest,” he said.

 

Rising trade protectionism around the world could however hurt demand for Uganda’s exports, he said, adding the damage would however not be enough to dent this year’s growth forecast.

 

“The economy is projected to grow by about 6.3 percent in fiscal year 2018/19 (July-June) and remain on a steady growth trajectory over the coming years,” Tumusiime-Mutebile said.

 

The growth was partly supported by the bank’s accommodative policy stance and the effects of public infrastructure investments, he said.

 

 

Transnet in talks to construct coal line link to Botswana

CAPE TOWN (Reuters) - South Africa’s state owned logistics company Transnet said on Thursday it was in talks to construct a heavy haul railway line to export some of Botswana’s 212 billion tonnes of coal reserves.

 

Transnet said the agreement to construct the link will with Botswana Railways will see up to 80 million tonnes of coal transported annually from Botswana for export and domestic use.

 

Coal will be transported for export via South Africa’s Richards Bay port and the port of Maputo in Mozambique.

 

The talks between the two railway companies took place on the sidelines of a mining conference in Cape Town this week, based on a ten-year old study that showed the railway link to be the most viable option to ferry the coal reserves from Botswana.

 

Transnet said its ongoing railways expansion in South Africa would be linked to the new rail network to Botswana.

 

Botswana’s first privately owned coal mine, which is estimated to hold 390 million tonnes of coal reserves, said last week it could produce its first saleable coal in March.

 

 

 

Jeff Bezos: Amazon boss accuses National Enquirer of blackmail

The world's richest man, Amazon.com founder Jeff Bezos, has accused the National Enquirer's owner of trying to blackmail him over lewd pictures.

 

Mr Bezos said the magazine's parent company American Media Inc (AMI) wanted him to drop an investigation into how it obtained his private messages.

 

Mr Bezos and his wife, MacKenzie, said last month they were getting divorced.

 

Their announcement came just before the National Enquirer carried reports about the tech titan's extramarital affair.

 

AMI has not yet responded to the BBC's request for comment.

 

How Jeff Bezos took Amazon to the top

 

The Bezos backlash: Is 'big philanthropy' a charade?

 

What does Bezos claim?

In a stunning blog post on Thursday, Mr Bezos posted an email he said had been sent to his intermediaries by AMI's representatives threatening to publish "intimate photos" of Mr Bezos and his lover, former TV host Lauren Sanchez.

 

The billionaire, who also owns the Washington Post, said AMI had wanted him to make a "false public statement" that the National Enquirer's coverage of him and his mistress was not politically motivated.

 

According to emails included by Mr Bezos in his blog, an AMI lawyer proposed on Wednesday that the photos would not be published in return for a public statement "affirming that [Bezos and his team] have no knowledge or basis" to suspect such a motive.

 

"Rather than capitulate to extortion and blackmail," wrote Mr Bezos, "I've decided to publish exactly what they sent me, despite the personal cost and embarrassment they threaten."

 

Early in the blog post, Mr Bezos mentions AMI's links to President Donald Trump.

 

Why does he mention President Trump?

Mr Bezos said his ownership of the Washington Post was a "complexifier" for him because he had made enemies of "certain powerful people", including President Donald Trump, who is a friend of AMI's boss David Pecker.

 

AMI recently admitted it had co-ordinated with the Trump presidential campaign to pay a Playboy model $150,000 (£115,000) in hush money to keep quiet about her alleged affair with Mr Trump.

 

Mr Bezos notes in his blog post how the publisher confessed to the so-called "catch and kill" deal to bury Karen McDougal's politically embarrassing story.

 

AMI's agreement to co-operate with federal authorities means it will not face criminal charges over the payments, Manhattan prosecutors announced in December.

 

Mr Trump's former lawyer Michael Cohen - who facilitated the hush money at the direction, he says, of Mr Trump - has already admitted violating campaign finance laws.

 

What about Bezos' reputation?

The Amazon boss didn't try to hide the potential for embarrassment, writing "of course I don't want personal photos published" and noting what he called "AMI's long-earned reputation for weaponising journalistic privileges".

 

"But," he continued, "I also won't participate in their well-known practice of blackmail, political favours, political attacks, and corruption. I prefer to stand up, roll this log over, and see what crawls out."

 

His blog contained itemised details of 10 pictures in an email from the magazine's editor Dylan Howard, who said they had been "obtained during our newsgathering".

 

New Yorker writer Ronan Farrow alleged that he "and at least one other prominent journalist" had been subject to similar threats from AMI.

 

Report

Mr Bezos said "AMI's claim of newsworthiness is that the photos are necessary to show Amazon shareholders that my business judgment is terrible".

 

But the Amazon boss countered that the firm's results "speak for themselves".

 

Dylan Howard's name, along with two National Enquirer reporters, appears on a story the magazine published on 9 January containing alleged details of Mr Bezos' affair with Ms Sanchez.--BBC

 

 

Woody Allen sues Amazon for dropping A Rainy Day in New York

Woody Allen has launched legal action against Amazon Studios, accusing it of breaching their contract by refusing to distribute his latest film.

 

The 83-year-old is seeking more than $68m (£52m) in damages, alleging the company backed out of a multi-picture deal without cause.

 

Amazon released two of Allen's films and also distributed his TV series, Crisis in Six Scenes.

 

But it dropped his most recent movie, A Rainy Day in New York.

 

The BBC contacted Amazon Studios for comment, but did not receive an immediate reply.

 

According to a lawsuit filed on Thursday in New York, Allen claims Amazon backed out of the deal in June 2018 because of an old accusation that the director had molested his adopted daughter Dylan Farrow in 1992.

 

The legal action said Amazon knew about "a 25-year old, baseless" allegation when it entered into deals with the director and that it "does not provide a basis for Amazon to terminate the contract".

 

A Rainy Day in New York was shot in 2017 with a cast including Jude Law, Rebecca Hall, Selena Gomez and Timothée Chalamet.

 

Moses Farrow defends Woody Allen

Dylan Farrow: 'Allen's been lying so long'

A number of its cast members have since distanced themselves from the project, with Chalamet announcing in 2018 he would give his salary to charity.

 

Last year Law told Vanity Fair it was "a terrible shame" the film had been shelved and that he would "have to consider carefully" before ever working with Allen again.--BBC

 

 

 

Twitter shares drop 10% as revenue outlook disappoints

Shares in Twitter have fallen 10% after the social media company's revenue forecast fell short of expectations.

 

Revenue for the first quarter of 2019 is now expected to be between $715m and $775m, below analysts' forecasts.

 

Twitter also warned that its operating costs could rise 20% in 2019.

 

The share fall came despite the company reporting profits of $255m (£197m) for the final quarter of 2018, more than double the $91m profit it made a year earlier, as advertising revenues grew.

 

The rising costs come as social media companies face increased pressure to police the content of their sites more closely, following scandals over mental health, user privacy, hate speech and political campaigning.

 

Twitter said it had removed millions of abusive accounts as part of its clean-up effort, prompting a fall in monthly users.

 

Currently 321 million people use Twitter, as calculated on a monthly basis, down from 330 million a year earlier.

 

Despite the decline, revenue in the last quarter increased 24% to $909m as video advertising grew.

 

Jack Dorsey, Twitter's chief executive, said "2018 is proof that our long-term strategy is working".

 

"We enter this year confident that we will continue to deliver strong performance by focusing on making Twitter a healthier and more conversational service," he added.

 

Twitter warns that private tweets were public for years

Facebook users continue to grow despite privacy scandals

Alphabet shares drop despite 22% sales rise

Twitter said it would stop disclosing monthly active users and switch to reporting active daily users instead.

 

On a daily basis, the platform drew 126 million users in the fourth quarter - up 1.6% from the prior period.

 

That compares to Facebook's 1.5 billion daily users and Snapchat's 186 million.

 

Clement Thibault, analyst at global financial platform Investing.com, said: "Total user numbers are down, but we've known for a while now that Twitter has a fake-users problem and is trying to deal with it, so that shouldn't come as a surprise to anyone.

 

"Higher operating expenses, on the other hand, are a bigger problem, as I anticipate Twitter's margins and profits to shrink considerably in 2019."--BBC

 

 

 

Bank forecasts worst year for UK since 2009

The Bank of England expects growth this year to be the slowest since 2009 when the economy was in recession.

 

It is forecasting growth of 1.2% this year, down from its previous forecast of 1.7% made in November.

 

The Bank said it had seen further evidence that businesses were being cautious in the run-up to Brexit, including evidence from its own survey of firms.

 

As expected the Bank kept interest rates on hold at 0.75%.

 

The Bank put the fall in growth down to a decline in business investment and housebuilding, as well as a halving of the growth rate in exports.

 

The UK was also being hit by slower-than-expected growth in the eurozone and China, the Bank said in its Quarterly Inflation Report.

 

"Growth appears to have slowed at the end of 2018 and is expected to remain subdued in the near term," it said.

 

The Bank even sees a one-in-four chance of the economy slipping into recession in the second half of this year.

 

Brexit stalemate scars prosperity, says Bank

What did the Bank say about Brexit?

There has been an "intensification" of Brexit uncertainties, the Bank said.

 

Its survey of 208 firms showed that half had started putting plans in place for a no-deal Brexit. The survey also showed that a fifth had taken on extra warehouse space

 

It also noted a sharp fall in business investment at the end of last year.

 

"Uncertainty appears to have risen recently, and may have weighed on investment by more than had been expected in August," the Bank said.

 

Bank of England Governor Mark Carney said: "The fog of Brexit is causing short term volatility in the economic data, and more fundamentally, it is creating a series of tensions in the economy, tensions for business."

 

When will interest rates rise?

Interest rates remain at 0.75%, where they have been since the Bank of England last raised in interest rates in August.

 

Many economists think that once the uncertainty over Brexit is lifted then the economy will accelerate and the Bank will have to raise interest rates to stop it overheating.

 

However, recent economic data has indicated weakness in the UK economy. Growth in the service sector, the biggest part of the economy, appeared to have stalled in January, according to closely-watched survey of purchasing managers.

 

Samuel Tombs, an economist at Pantheon Macroeconomics, predicts that the Bank will raise rates once this year and twice in 2020.

 

Paul Dales, chief UK economist at Capital Economics, said: "We still think that a decent rebound in GDP growth, should a Brexit deal be reached, will result in interest rates rising further than the Bank and the financial markets assume."

 

What effect is all this having on mortgage rates?

Moves in interest rates are important to the 3.5 million people with variable or tracker mortgages. Even a small rise of 0.25% can add hundreds of pounds to their annual mortgage costs.

 

"It's a very good time for people looking to borrow," said Andrew Montlake, a director at Coreco, a mortgage broker.

 

He said there had been a lot of competition among lenders in January, with some very good deals for five-year fixed mortgage deals. Some lenders are offering five-year fixed deals at below 2%, he said.

 

Concern over Brexit has held back some people from borrowing. "There is a lot of pent-up demand," said Mr Montlake.

 

Savers who depend on higher interest rates to boost their incomes will be disappointed that rates have stayed on hold for a sixth consecutive month.

 

Is the Brexit uncertainty hitting jobs?

While the Bank cut its growth forecast it also noted the strength of the labour market, where the unemployment rate is currently 4%.

 

The rate at which people are switching to new jobs is only slightly below the level hit before the financial crisis of 2007.

 

That switching suggests that employers are having to compete to attract staff, the Bank said.

 

It also noted a pick-up in the average number of hours worked at the end of last year and firmer wage growth.

 

What does it all mean for our wages?

The Bank thinks that wage growth will increase in the coming years as the UK's unemployment rate continues to fall.

 

The main reason the Bank thinks underlying inflation pressures will grow is that wage growth will rise.

 

Britain's unemployment rate has hit its lowest level in more than 40 years.

 

The Bank predicts that earnings will rise by more than 3% a year over the next three years.--BBC

 

 

 

Jaguar Land Rover posts £3.4bn loss as China demand slips

Jaguar Land Rover booked a loss for the last three months of 2018 as sales collapsed in China.

 

The company booked a £3.1bn reduction in the value of its plants and other investments leading to a £3.4bn quarterly loss, its biggest to date.

 

Carmakers are being hit by stronger regulations and demand for cleaner models.

 

Sales for the quarter were £6.2bn, down from £6.3bn a year earlier. It sold 144,602 vehicles, down from 154,447.

 

Jaguar chief executive Ralf Speth said: "Jaguar Land Rover reported strong third-quarter sales in the UK and North America, but our overall performance continued to be impacted by challenging market conditions in China."

 

Excluding the write-down, which affects its balance sheet but has no effect on cash, the company posted a loss of £273m.

 

Much of the firm's model range is currently diesel-powered, while diesel sales in Europe have been falling.

 

Jaguar Land Rover, which is owned by India's Tata Motors, has embarked on a major restructuring programme to prepare for the future and boost profitability.

 

It has already announced plans to cut thousands of jobs.

 

It has now accepted that the value of its existing investments - such as factories, equipment and model designs - is substantially lower than previously thought, said BBC business correspondent Theo Leggett.--BBC

 

 

 

Thomas Cook considers sale of airline

Thomas Cook has said it is conducting a "strategic review" of its airline as it seeks to find funds to invest more in its hotels business.

 

The travel firm stressed the review was at an early stage, but would consider "all options" including a sale.

 

The company's fleet of 103 jets is a mix of planes it owns and leases.

 

Airlines across Europe are struggling amid fierce competition. Budget airline Germania has filed for bankruptcy and Flybe needed rescuing last month.

 

In contrast, Thomas Cook's airline is largely profitable. It made earnings before financing costs and tax of £129m last year, although it reported a loss in the last three months of 2018.

 

News of a potential sale boosted the firm's shares by 13% in early trading.

 

 

The company said it needed "greater financial flexibility and increased resources" to invest in its own-brand hotels. The company wants more control over its hotels to make them more customisable, it says, such as offering a sunbed booking service.

 

Thomas Cook reported a wider operating loss in the three months to the end of December, up £14m from a year ago to £60m. Sales rose 1% to £1.66bn.

 

Lee Wild, head of equity strategy at Interactive Investor, said: "Net debt of £1.59bn is a millstone around Cook's neck, and it just does not have the money to make crucial and necessary improvements to the business."

 

If it wants to upgrade its hotels, it "explains the rationale" of potentially selling the airline business, he said.

 

Thomas Cook operates planes in the UK, Germany and Scandinavia. Just under half of its airline seats are used by the tour operator's own customers, with the remainder sold to rivals and the public. A quarter of the fleet flies long-haul.

 

Norwegian loss

In a further sign of stress in the airline sector, Norwegian Air said on Thursday that its fourth-quarter loss had widened to $351m (£272m) from about $83m a year ago. The airline made a name for itself offering budget transatlantic flights, but it landed itself with high losses and large debts.

 

IAG, British Airways' owner, last month decided not to buy the firm, leading Norwegian to decide to raise funds from shareholders.

 

Earlier this week, Ryanair posted a net loss of €19.6m (£17.2m) for the last three months of the year, its first quarterly loss since March 2014.

 

While the company blamed too many airlines chasing too few passengers, costs may be the real problem, industry experts said.

 

Separately, shares in rival travel Tui sank 20% on Thursday after the company slashed its earnings forecast. blaming last year's "extraordinary hot weather" and the weak pound.

 

The firm said profits for the year to 30 September will be about €1.17bn, similar to last year. Previously it said 10% growth could be expected.--BBC

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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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