Major International Business Headlines Brief::: 11 February 2019

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Major International Business Headlines Brief::: 11 February 2019

 


 

 


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*  Zimbabwe miner RioZim again suspends production over dollar payments

*  Rand volatility rises as investors turn bearish after Ramaphosa speech

*  Algeria energy revenues up 15 pct in 2018, trade deficit down

*  UN-recognised govt of Libya says its forces reach El Sharara oil field

*  Egypt's core inflation rises to 8.6 pct yr/yr in January -c.bank

*  Marriott teams up with Kuwait Projects on St Regis resort in Morocco

*  Three consortiums compete to build dry port west of Cairo

*  South Africa's NUM union tells Ramaphosa to scrap Eskom split plan

*  S.Africa's Harmony Gold expects drop in half-year earnings per share

*  Eskom bonds rise on Ramaphosa's pledge to split utility

*  Reddit: Censorship fears spark criticism of Tencent funding reports

*  Brexit: Seaborne Freight no-deal ferry contract scrapped

*  Goldman Sachs' role in the 1MDB scandal - in 300 words

*  Nord Stream 2: EU agrees tighter rules for Russian pipeline

*  Why Asia isn't hanging up on Huawei

 

 

 


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Zimbabwe miner RioZim again suspends production over dollar payments

HARARE (Reuters) - Zimbabwean gold miner RioZim said on Friday it had
suspended production at its three mines for the second time in four months
because the central bank had failed to pay it in U.S. dollars for part of
its gold deliveries.

 

Gold producers in the southern African country sell their output to central
bank subsidiary Fidelity Printers and Refiners and are supposed to be paid
55 percent of their earnings in U.S. dollars. The remainder is paid via
electronic dollars into their bank accounts.

 

RioZim, which is 95-percent owned by local shareholders, is Zimbabwe’s
second biggest gold producer and last October threatened legal action to
force the Reserve Bank to pay it more dollars for part of its output.

 

The gold miner said since December, it had experienced “significant and
persistent” delays in dollar payments, affecting its viability.

 

“Consequently, the company has recently been forced, once again, to
involuntarily suspend production across all its three gold mines pending
full payment of its foreign exchange proceeds,” RioZim said in a statement.

 

The company said it continued to engage the Reserve Bank but if negotiations
failed, it would shut its mines indefinitely.

 

Central bank Governor John Mangudya did not respond to calls for a comment.

 

Zimbabwe adopted the U.S. dollar in 2009 to tame hyperinflation, but is
facing acute dollar shortages and that has sent prices of basic goods
spiralling and inflation rising to double digits.

 

Mines Minister Winston Chitando said on Monday Mangudya would soon introduce
a monetary policy tool to alleviate the foreign currency shortages that have
affected miners.

 

Gold is the country’s single largest export earner and production reached an
all time high of 33 tonnes in 2018 from 27 tonnes the year before, official
data shows, driven by record output from small scale producers.

 

Big mining companies say the acute shortage of dollars, which has also
sapped supplies of fuel and medicines, hampers their ability to expand
production and start new projects.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 



Rand volatility rises as investors turn bearish after Ramaphosa speech

JOHANNESBURG (Reuters) - Investors on Friday raised their bets on a weaker
South African rand as the options premium for buying currency jumped and
implied volatility rose to its highest in a month, just days ahead of the
budget speech and national elections in May.

 

South African President Cyril Ramaphosa announced the election date in his
state of the nation speech late on Thursday, where he also outlined plans to
fix the economy. The president’s comments on the election triggered a rise
in activity in forward markets.

 

One-month implied volatility rose 4.5 basis points to 15.05 percent, its
highest since mid-January after beginning the week at a 9-month low.

 

The 25-delta risk reversals, the premium of options to sell the currency
over those to buy it in the next month, rose to its highest since
mid-January trading at 2.21 percent.

 

That bearish turn was reflected in the rand’s spot price, with the unit
slumping overnight to its softest in one week at 13.70 per dollar.

 

Ramaphosa’s plans to fix the economy, including breaking up the state owned
power firm Eskom, did not prevent markets turning bearish on the rand, with
investors looking ahead to the budget speech on Feb. 20 and May’s elections.

 

“What you’re seeing now is options markets positioning for additional
volatility around that election period,” said strategist at ETM Analytics
Jana van Deventer.

 

“Unfortunately, South Africa is at a point where talk is cheap and investors
are waiting to see if the actions Ramaphosa has promised will actually be
taken,” van Deventer said.

 

A monthly measure of business confidence released on Wednesday stalled with
investors citing slow implementation of Ramaphosa’s promises to reform the
economy.

 

The rand kicked off 2019 on a high and was the best performing currency
against the dollar, netting a return of around 7 percent in the first month
of the year as the United states central bank stepped back from its rate
hiking cycle.

 

The tide has, however, turned in February, with flows into emerging market
reversing and risks that saw the currencies suffer a torrid 2018 being
priced back in, mainly over worries about global growth.

 

A Reuters poll this week found the rand was likely to lose about half of the
gains made against the greenback since the start of the year over the next
12 months, pressured by fiscal constraints and weak growth.

 

“The rand’s ability to hold on to gains will likely be tested over the
coming month,” said Mehul Daya, foreign exchange specialist at Nedbank,
adding that the currency could weaken towards 14.00, a level last seen in
early January.

 

 

Algeria energy revenues up 15 pct in 2018, trade deficit down

ALGIERS (Reuters) - Algeria’s energy earnings rose 15.27 percent in 2018
from the previous year due to higher global oil prices, the government said
on Saturday.

 

Stronger revenues helped to reduce the OPEC member’s trade deficit by 53.73
percent to $5.03 billion in 2018, according to customs figures.

 

Oil and gas exports, which accounted for 93.13 percent of total sales
abroad, reached $38.34 billion, up from $33.26 billion in 2017, the figures
showed.

 

The overall value of exports stood at $41.17 billion compared with $35.19
billion in 2017. Imports rose 0.3 percent to $46.20 billion in 2018, the
customs data showed.

 

Algeria has failed to reduce spending on imports despite import restrictions
on some goods, including foodstuffs.

 

 

 

UN-recognised govt of Libya says its forces reach El Sharara oil field

BENGHAZI, Libya (Reuters) - Forces belonging to the
internationally-recognised government of Libya reached the El Sharara oil
field on Sunday, a Tripoli-based government source said.

 

The North African nation’s biggest field is a focus of the conflict between
the Tripoli-based government and a rival administration based in eastern
Libya.

 

Separately, an eastern Libyan military plane intercepted on Sunday a
civilian plane after it took off from the El Feel oilfield, forcing it to
land in the southern region of Sebha, said a source from the eastern-based
armed forces.

 

Both fields are located in southern Libya.

 

 

 

Egypt's core inflation rises to 8.6 pct yr/yr in January -c.bank

CAIRO (Reuters) - Egypt’s core inflation has increased to 8.6 percent year
on year in January from 8.3 percent in December, the central bank said on
Sunday.

 

 

 

Marriott teams up with Kuwait Projects on St Regis resort in Morocco

DUBAI (Reuters) - United Real Estate Co., a unit of Kuwait Projects Co, and
Marriott International said in a joint statement on Saturday that they had
agreed to open a resort near Marrakech.

 

Marriott said in October it had signed deals with partners to increase its
hotels in Africa 50 percent by 2023, opening new ones in Ghana, Kenya,
Morocco, South Africa and entering the market in Mozambique.

 

The St. Regis Marrakech, in central Morocco, should open in 2024, the joint
statement published in Kuwait said, without disclosing the cost of the
development.

 

The deal “introduces” Marriott’s St Regis brand to Marrakech, it said,
adding that the resort will be owned by Morocco’s Assoufid Properties
Development and developed by United Real Estate.

 

 

 

Three consortiums compete to build dry port west of Cairo

CAIRO (Reuters) - Three consortiums are competing to build a dry port west
of Cairo worth $100 million, the Egyptian finance ministry said on Sunday.

 

The project will be a public-private partnership between the General
Authority For Ports and Dry Land and the winning consortium, to be built on
roughly 104 acres in 6th of October City, a suburb west of the capital.

 

It will be built “as a port for customs clearance of containers handled
through the Alexandria and Dekheila ports, which will contribute to easing
container traffic,” the ministry said in a statement.

 

Technical and financial bids are expected to be presented in May, after
which the winning bidder will be announced, the ministry said. The agreement
will last up to 30 years, after which the port will be owned by the state.

 

Container Corporation of India Ltd leads one of the consortiums with Egypt’s
Hassan Allam Holding and Singapore’s PSA International Pte Ltd.

 

The second consortium is led by the UAE’s DP World in a partnership with the
Egypt-based Holding Company for Maritime and Land Transport SAE.

 

Egypt’s Elsewedy Electric leads the third consortium, which includes
Schenker Egypt and Egypt-based 3A International.

 

 

South Africa's NUM union tells Ramaphosa to scrap Eskom split plan

JOHANNESBURG (Reuters) - South Africa’s National Union of Mineworkers (NUM)
on Friday urged President Cyril Ramaphosa to reconsider his plan to split
state power firm Eskom into three separate entities, saying it would lead to
large-scale job losses.

 

“The NUM is going to fight tooth and nail against the unbundling of Eskom,”
the union, which says it has more than 15,000 members at Eskom, said in a
statement. “It is the privatisation of Eskom to enrich the elites.”

 

 

 

S.Africa's Harmony Gold expects drop in half-year earnings per share

JOHANNESBURG (Reuters) - South Africa’s Harmony Gold said on Friday its
earnings per share for the first half of the year could be up to 97 percent
lower than this time last year.

 

The gold miner said a 915 million rand ($67 million) depreciation charge,
lower derivatives gains and unfavourable currency conversion hit earnings,
while costs also rose 6 percent.

 

Headline earnings per share - a key profit measure in South Africa that
strips out one off items - were expected to be between 83 percent and 97
percent lower than the first half of 2018, Harmony said in a trading update.

 

However, Harmony said its production rose by 34 percent year-on-year,
contributing to its operational free cash flow, thanks to its investments in
two mines.

 

One, Hidden Valley, reached commercial levels of production in June 2018,
prompting the larger depreciation and amortisation charge.

 

Harmony shares were up 1.24 percent to 29.36 rand per share at 0741 GMT. The
miner will publish its half-year results on Feb. 12.

 

($1 = 13.6667 rand)

 

 

 

Eskom bonds rise on Ramaphosa's pledge to split utility

JOHANNESBURG (Reuters) - Dollar-denominated bonds issued by South African
state power firm Eskom rose across the curve on Friday, a day after
President Cyril Ramaphosa pledged to split the utility and support its
balance sheet as part of a rescue plan.

 

At 0745 GMT, the 2023 issue rose 0.13 cent to trade at 98.66 cents in the
dollar and the 2025 bond rose a similar amount to change hands at 98.69
cents, according to Tradeweb data.

 

 

 

Reddit: Censorship fears spark criticism of Tencent funding reports

A reported investment by Chinese tech giant Tencent in Reddit has sparked a
backlash on the popular community news site over censorship fears.

 

Last week reports said that Tencent would be investing $150m (£115m) into
the platform.

 

China has a strict internet censorship regime known as the Great Firewall
and Reddit is among the sites it blocks.

 

The proposed funding prompted a wave of criticism on Reddit, which many of
its users see as a bastion of free speech.

 

Most analysts agree that it is unlikely Tencent or any other such investor
would be able to control what content is posted on the site but that hasn't
stopped a stream of memes and protest messages appearing in the past few
days.

 

The Reddit platform allows users to share links on any conceivable subject,
which are then up-or down-voted, meaning the most popular content surfaces
to the top and is more prominent.

 

The platform has 330 million active users and describes itself as the "Front
Page of the Internet".

 

Along with sites like Facebook and Twitter, Reddit is inaccessible in China
as part of the country's Great Firewall.

 

The government's internet censorship regime uses a series of technical
measures to block foreign platforms and controversial content.

 

China-based messaging services and social media are restricted, with key
words and expressions blocked if they express dissent or ridicule senior
political leaders.

 

How Chinese authorities censor your thoughts

Why you can talk about John Oliver in China

So the report prompted some concerns among the Reddit community that the
site may even face content restrictions outside China in the future.

 

Winnie the Pooh memes

In recent days Reddit users shared images of the 1989 Tiananmen Square
protest and Winnie the Pooh in reference to concerns a tie-up with the
Chinese firm would lead to stricter content controls.

 

In the past, Chinese authorities have blocked information related to the
crackdown against protesters in Beijing's Tiananmen Square on the
anniversary of the event. Search terms such as "six four" - a reference to
the date of the event 4 June and "never forget" when typed into Chinese
search engines have not returned any results.

 

Winnie the Pooh has also been blocked at times on Chinese social media sites
as bloggers compare the cartoon character to the country's President Xi
Jinping.

 

One popular post by FreeSpeechWarrior featuring an image of a man stopping
tanks in Tiananmen Square was up-voted on the site more than 200,000 times.

 

A separate post from user BonZZil17 said: "Thanks for the money Tencent, now
here's Tank man from the Tiananmen Square Massacre of 1989."

 

Another, posted by ChristopherVDV, shared an image of Winnie the Pooh citing
Tencent's investment had been up-voted more than 37,000 times.

 

"Given that Reddit just took a $150 million investment from a Chinese
censorship powerhouse, I thought it would be nice to post this picture of
Winnie-The-Pooh before our new glorious overlords decide we cannot post it
anymore," the post read.

 

Still, the level of Tencent's proposed funding falls far short of full
control.

 

A $150m investment represents a fraction of the site's value, which is
thought to be worth as much as $2.7bn.

 

Tencent, which also operates the Chinese social network WeChat, is one of
China's most successful technology companies.--BBC

 

 

Brexit: Seaborne Freight no-deal ferry contract scrapped

The government has axed its no-deal Brexit contract with a ferry company
which had no ships, after the Irish company backing the deal pulled out.

 

Transport Secretary Chris Grayling had faced criticism for the £13.8m deal
with Seaborne Freight, which the BBC found had never run a ferry service.

 

The government said it is in "advanced talks" to find another ferry firm.

 

But local MP Craig Mackinlay said this could be the "last throw of the dice"
for commercial shipping from Ramsgate.

 

Meanwhile, Labour has called on Mr Grayling to resign or be sacked,
describing him as "the worst secretary of state ever".

 

Could Channel ports cope with no-deal Brexit?

No-deal Brexit ferry contract queried

A really simple guide to Brexit

What preparations are being made for a no-deal?

Seaborne Freight was awarded the £13.8m contract in December to run a
freight service between Ramsgate and Ostend, Belgium, in the event that
Britain leaves the EU without a deal.

 

The government was criticised for choosing Seaborne Freight, a company with
no ships or trading history, and for leaving too little time to establish
the new ferry service before the Brexit deadline of 29 March.

 

And local politicians in both Ramsgate and Ostend warned that the ports at
both ends of the route will not be ready the deadline.

 

At the time, the government said it awarded the contract "in the full
knowledge" that Seaborne, which was formed in April 2017, was "a new
shipping provider" but said the company had been "carefully vetted".

 

On Saturday, the Daily Telegraph reported that Arklow Shipping, a major
Irish shipping firm, withdrew its support from Seaborne "without warning".

 

The Department for Transport (DfT) said that it had become clear that
Seaborne "would not reach its contractual requirements", after Arklow
Shipping backed out of the deal.

 

A spokesman said: "The government is already in advanced talks with a number
of companies to secure additional freight capacity - including through the
Port of Ramsgate - in the event of a no-deal Brexit."

 

Thanet District Council - which covers Ramsgate - said it was
"disappointing" that Arklow Shipping had pulled out of the deal. It said it
was in talks with the DfT about the port's role "in terms of supporting
Brexit resilience".

 

The council has been pumping money into the port to get it ready for ferry
services. Earlier this week, it was considering cutting its budget for the
port but, at the request of Mr Grayling, delayed its decision.

 

Ramsgate has not had a regular ferry service since 2013 and needs to be
dredged before services can start.

 

'The last throw of the dice'

Following the news that Seaborne Freight had lost the contract, the
Conservative MP for South Thanet, Mr Mackinlay, said ferry companies had
"come and gone over the last few years" but "none of them have come to
anything".

 

"For me, this Seaborne operation was potentially the last throw of the dice
for a chance for commercial shipping out of Ramsgate," he said.

 

"Perhaps it is time that we turned the page on Ramsgate port being for
commercial activity and we can start doing something rather more exciting on
those acres of land, potentially a marina village, hotels, restaurants, some
housing, something really exciting that I think would be more welcomed by
many people in Ramsgate."

 

Andrew Gwynne, the shadow secretary of state for communities and local
government, told BBC Radio 4's Today programme: "This is yet again another
indication of a government that had no plan for Britain should we leave the
European Union without a deal.

 

"It's another example of a major disaster in the hands of Chris Grayling who
must be classed as the worst secretary of state ever."

 

The government said that no taxpayer money has been transferred to Seaborne.

 

It added that its confidence in the viability of the deal with Seaborne was
based on Arklow Shipping's backing of the company and the assurances it
received from them.--BBC

 

 

 

Goldman Sachs' role in the 1MDB scandal - in 300 words

The 1MDB corruption scandal has cast a shadow over Goldman Sachs, raising
questions about how much the US investment bank knew about the misconduct.

 

What is Goldman accused of?

The firm helped raise $6.5bn (£5bn) for the Malaysian development fund,
advising on three bond offerings in 2012 and 2013.

 

Prosecutors allege more than $2.7bn was later embezzled, used to bribe
government officials and buy luxury items.

 

In November, Goldman's lead banker on the deals, Tim Leissner, pleaded
guilty in US court to participating in the bribery and money laundering
schemes.

 

Malaysia's attorney general then charged Goldman with helping to
"dishonestly misappropriate" money from the fund.

 

He noted that the $600m Goldman earned for its work was "several times
higher" than industry norms.

 

The firm remains under investigation in the other countries, including the
US, and is also facing lawsuits from investors.

 

What does Goldman say?

Goldman says the Malaysia charges are "misdirected".

 

It says the firm's compliance officers were deceived about aspects of the
deal, including the role of Malaysian financier Jho Low, whom the bank had
previously rejected as a client.

 

But news reports have described the firm's former chief executive, Lloyd
Blankfein, meeting Mr Low and former Malaysian Prime Minister Najib Razak.

 

Mr Leissner, Goldman's South East Asia chairman until he left the firm in
2016, has said the decision to hide information from Goldman's compliance
officers was "very much in line" with company culture.

 

What penalties could Goldman face?

Malaysian authorities are seeking fines of more than $3bn.

 

Goldman has warned investors of the risk of "significant" penalties and
increased the money set aside for legal liabilities to $1.8bn.

 

As its legal costs surge, it has also said it will withhold millions due to
some of its top executives, including Mr Blankfein, pending the outcome of
the probes.--BBC

 

 

 

 

Nord Stream 2: EU agrees tighter rules for Russian pipeline

EU ambassadors have agreed to toughen regulations on a controversial gas
pipeline from Russia to Germany, but they have decided not to back plans
that might threaten its completion.

 

Work on the 1,225km (760-mile) Nord Stream 2 pipeline under the Baltic Sea
is set to end this year, but it has angered several EU countries.

 

The EU wants to bring pipelines coming into the bloc under its energy rules.

 

But Germany feared that would make the new pipeline uneconomic and unviable.

 

In the end 27 of the bloc's 28 ambassadors reportedly agreed to a
Franco-German compromise.

 

France said it was delighted that Germany had agreed to place Nord Stream
"under European control", and in return Germany is likely to remain as lead
negotiator on the project.

 

German Chancellor Angela Merkel also praised the deal.

 

What are the worries with Nord Stream 2?

Russia currently supplies around 40% of the EU's gas supplies, just ahead of
Norway, which is not in the EU but takes part in the bloc's single market.
The new pipeline would increase the amount going under the Baltic to 55bn
cubic metres a year.

 

For years, the 28-member bloc has been concerned about reliance on Russian
gas.

 

Poland has warned that Russia could use Nord Stream 2 to harm Europe's
energy security, and US President Donald Trump even accused Germany of being
a "captive" of Russia because of it.

 

Nord Stream 2 will not only increase Russia's supply, it also means that,
along with its TurkStream project, Russia will be able to bypass Ukrainian
pipelines. The loss of transit fees would hit Ukraine's economy hard.

 

The EU is also trying to look beyond Russian gas - to imports of US
liquified natural gas (LNG) and new pipelines, such as a planned
Norway-Poland pipeline via Denmark, that would supply Sweden and other
neighbouring states.

 

Why is Germany backing the new pipeline?

German businesses have invested heavily in Nord Stream 2 and former
Chancellor, Gerhard Schröder is running the project.

 

As well as Germany's Uniper and BASF's Wintershall unit, other European
companies have stakes too, including Anglo-Dutch Shell, OMV of Austria and
Engie of France.

 

Chancellor Angela Merkel tried to assure Central and Eastern European states
on Thursday that the pipeline would not make Germany reliant on Russia for
energy.

 

"Germany will expand its network of gas terminals in regards to liquified
gas. Meaning, for gas we do not want to be at all dependent on Russia
alone," she said.

 

Russian government spokesman Dmitry Peskov said Moscow hoped the
disagreement would be sorted out. "We still believe that this project is
beneficial to both the European gas consumers' interests and to Russian
Federation as gas supplier," he said.

 

What is in the EU deal?

Ultimately it came down to a compromise struck between France and Germany, a
day after the French government had announced it was withdrawing its support
for Germany.

 

A key part of the deal, according to French diplomats, is that Nord Stream 2
is not threatened as a project but now faces stricter controls and maybe
revision too.

 

A big priority for the EU is to increase competition.

 

So, instead of having a patchwork of different agreements for pipelines
entering the bloc, they would have to come under the EU's rules for the
internal energy market.

 

Those rules include separation of ownership of the pipes from the supplier -
known as unbundling. With Nord Stream 2, Russia's Gazprom controls both.

 

However, under the deal, the rules apply from the "territory and territorial
sea of the member state where the first interconnection point is located".

 

In the case of Nordstream 2 it seems unlikely those rules would cover the
pipeline under the Baltic Sea before it reaches the interconnector network.
Any changes required to the project would also be renegotiated by Germany.

 

The text may still change as it will now go to the European Parliament,
where many MEPs have concerns about dependence on Russian gas.--BBC

 

 

 

Why Asia isn't hanging up on Huawei

Chinese telecoms giant Huawei is facing a global backlash but for many
telecom operators in South East Asia, it is still among the preferred 5G
partners.

 

Several Asian telecom firms have told me it is "business as usual" for
Huawei in their countries.

 

That's despite the US pressuring its allies to hang up on Huawei, over
concerns that the firm is spying for the Chinese government.

 

Huawei has consistently denied that it is a security threat, and says it
would never hurt its customers.

 

Timeline: What's going on with Huawei?

The Huawei exec trapped in a gilded cage

The firm has also been accused by the US Justice Department of stealing
trade secrets and breaking US sanctions on Iran.

 

But that hasn't dented its appeal for Asian customers.

 

Huawei is among the main providers of telecoms equipment for operators
conducting 5G trials in the Philippines, Singapore, Malaysia and Thailand.

 

Industry sources say competitors can't match Huawei on cost and
technological capability.

 

What is 5G?

High-speed internet has been described as the spinal cord of a modern
economy and 5G is a key part of that.

 

When it is fully functional it is expected to transform the way we use the
internet.

 

Huawei is also a key vendor for operators in emerging markets, like
Cambodia, where it has been used as an integral part of the current 4G
network.

 

At a basic level, that means being able to download a video in a couple of
seconds. At the more sophisticated end, think autonomous cars, smart homes
and internet powered cities.

 

What is 5G?

A safe and secure 5G network will be critical for a modern economy in the
future, says Tom Uren from the Australian Strategic Policy Institute (ASPI)
- and that's why Huawei is under such scrutiny.

 

"Although no company makes perfectly secure products, Huawei presents unique
additional risk beyond the "normal" risk of buying complex equipment," he
writes in a piece published on ASPI's website.

 

Mr Uren points to the alleged close links between the Chinese government and
local companies, and says Chinese firms are obliged by law to co-operate,
support and help with intelligence work.

 

"The equipment that will comprise the 5G network is not just a passive piece
of infrastructure," he writes.

 

"It has total visibility and control of all the connections within the
network. It sees who calls who, when, from where and controls what route
data is sent down."

 

Huawei - cheaper and better?

Huawei is thought to be a year ahead of its competitors in terms of its
technological expertise in terms of what it can offer customers, according
to industry sources.

 

Globe Telecoms in the Philippines has partnered with Huawei since 2011 to
help modernise its telecoms infrastructure networks.

 

Later this year, Globe plans to bring customers online for the first time by
using Huawei equipment to provide 5G connections in homes in areas of Manila
where there is no internet.

 

"5G is an important building block for the Philippine economy's
competitiveness. This is the reason we are accelerating our efforts to
deploy 5G, so we can provide as many Filipinos as possible an access to the
technology," Globe chief technology and information officer Gil Genio said
in a statement to the BBC.

 

For many countries in Asia, banning Huawei the way the US and Australia have
is ultimately impractical.

 

There are few other options. Finding another provider that can beat the
price that Huawei offers is tough.

 

While neither telecom operators or Huawei will reveal how much they charge
their customers, it is thought the Chinese firm offers as much as a 10%
discount to other companies in the market.

 

Huawei confident in uncomfortable times

Then there's the aftercare service that Huawei provides - analysts say it
has historically gone the extra mile by setting up customer support networks
in countries that Western companies have typically ignored or dismissed as
not important enough.

 

Concerns rising

But while there are many countries in Asia committed to Huawei, concerns are
still creeping in.

 

The international spotlight on the Chinese firm is causing some Asian
governments to think twice about using the company's products, according to
security analysts.

 

One security firm told me there has been a sharp rise in enquiries by
government clients about how potentially problematic Huawei's products are,
and what steps they can take to mitigate those risks.

 

"Some have asked us how much they should worry about whether Huawei is
really a liability", an analyst who consults to Asian governments told me,
on the condition of anonymity.

 

"Countries are increasingly worried that Huawei could be a significant risk
because of its perceived connections to the Chinese government."

 

Still, those concerns have yet to result in an outright ban in South East
Asia.

 

Malaysia says it is investigating Huawei before making a decision. For now
though, several telecom operators are still using the company to roll out 5G
services in the country.

 

One of Singapore's major telcos M1 has partnered with Huawei to trial 5G
services in the country.

 

Singapore's telecoms regulator says operators should "ensure vendor
diversity to mitigate risks from dependency on any one vendor", again not
banning Huawei outright.

 

What happens next?

Pressure on Huawei from the West is likely to continue.

 

The US administration is reportedly planning to extend restrictions on
Huawei with an executive order to ban the use of all Chinese telecoms
equipment makers in US wireless networks, and is likely to pressure US
allies to follow suit.

 

But that could come at a cost.

 

"If the US puts a ban on Huawei [in wireless networks], then that will cost
the US's 5G ambitions too," Samm Sacks, China digital economy fellow at the
New America think tank tells me.

 

"It would mean we wouldn't be able to participate in any blended network in
Europe or Asia. And if we are not going to participate that would put us at
a significant disadvantage."

 

This would mean a world of two internets - or what analysts are calling a
"Digital Iron Curtain" - dividing the world into parts that do business with
Chinese companies like Huawei, and those that don't.--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
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been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
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
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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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