Major International Business Headlines Brief::: 14 February 2019

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Major International Business Headlines Brief::: 14 February 2019

 


 

 


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*  Namibia's central bank expects first economic growth in three years

*  Eskom faces collapse without bailout - S.Africa govt

*  Nissan agrees joint venture to build Algerian car assembly plant

*  Former Apple lawyer charged with insider trading

*  South African rand slumps on Eskom fears, U.S. inflation

*  Orascom investment holding shares jump 5 pct on Egypt's stock market

*  Google outlines $13bn US investment

*  South Africa not planning to privatise Eskom after split - minister
Gordhan

*  First unit at Sasol's Lake Charles chemical plant starts output

*  Vodacom, Telkom welcome ECA bill withdrawal

*  Ford warns no-deal Brexit would be 'catastrophic'

*  UK inflation falls to two-year low in January

*  German think tank calls for EU to make Brexit concessions

*  Huawei: New Zealand needs us like rugby needs the All Blacks

*  Brexit: Mark Carney warns of no-deal 'economic shock'

 

 


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Namibia's central bank expects first economic growth in three years

WINDHOEK (Reuters) - Namibia’s central bank expects the domestic economy to
grow in 2019 for the first time in three years, Bank of Namibia Deputy
Governor Ebson Uanguta said on Wednesday.

 

Uanguta said the growth will be led by transport and construction, which are
expected to rebound after three years of contraction.

 

“2019 will register positive growth for the first time in three years, but
we will not get back to the level of growth that we have seen before,”
Uanguta told reporters.

 

He said construction growth would be driven by government public works in
the coming financial year, including the renovation of schools. The fiscal
year runs from April to March.

 

Uanguta said the country’s economy is expected to have contracted again last
year, but at a slower rate than the 0.8 percent contraction in 2017.

 

Namibia’s GDP growth has averaged 4.29 percent since independence in 1990.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Eskom faces collapse without bailout - S.Africa govt

JOHANNESBURG/CAPE TOWN (Reuters) - South African power utility Eskom needs a
cash injection by April to survive, the country’s public enterprises
department warned on Wednesday as the struggling state-owned firm cut
electricity for a fourth straight day.

 

Eskom, which supplies more than 90 percent of the power in Africa’s most
industrialised economy but is laden with more than $30 billion of debt, is
battling a shortage of capacity that threatens to derail government plans to
lift the sluggish economy.

 

President Cyril Ramaphosa said last week that the government would support
Eskom’s balance sheet but said details would be announced in a budget speech
by the finance minister on Feb. 20. [nL5N20287O]

 

The department of public enterprises, which oversees Eskom, said in a
presentation to parliament that Eskom was technically insolvent and would
“cease to exist” at the current trajectory by April, unless it gets the
bailout. The minister, Pravin Gordhan, however, ruled out privatisation of
the utility. [nJ8N1ZI00E]

 

The rand fell 0.9 percent against the U.S. dollar.

 

The yield on the benchmark government bond, which moves inversely to its
price, was up 8.5 basis points as investors fretted about the economic
impact of a crisis which could see South Africa lose its remaining
investment grade credit rating.

 

“With Eskom in the midst of trying to find a solution to its financing
needs, investors are more nervous as to what this means to (rating agency)
Moody’s,” Citi economist Gina Schoeman said in a note.

 

“Markets are highly sensitive to even a negative outlook decision because of
how close this places South Africa to a WGBI-exit and inevitable ZAR
depreciation and increased vulnerabilities,” she added, referring to the
World Government Bond Index (WGBI).

 

Moody’s, the only one of the “big three” agencies to rate South Africa at
investment grade, is scheduled to review the sovereign on March 29.

 

South Africa is rated “junk” by S&P Global Ratings and Fitch and if Moody’s
joins them, the country will be booted out of the WGBI which may prompt
investors to dump its assets.

 

FRUSTRATION

The public enterprises department said Eskom was struggling to keep its
mainly coal-fired plants running due to coal shortages and poor maintenance,
with 40 percent of breakdowns a result of human error.

 

The cash-strapped company said it would cut 3,000 megawatts (MW) of power
from the national grid from 0600 GMT on Wednesday, likely until 2100 GMT.
This follows a similar cut on Tuesday and 4,000 MW on Monday in the worst
power cuts seen in several years that drove the rand currency down on
Monday.

 

The power cuts have led to frustration among ordinary South Africans with
traffic gridlock in major cities during rush hours as traffic lights stop
working and some mothers struggling to feed their children.

 

“I have a baby, so making her bottles was a challenge because I had nowhere
to boil water, which resulted in me having to go to a restaurant that has a
generator just to get boiling water,” 28-year old Anazi Zote, mother of a 10
month-old daughter, told Reuters.

 

Business owners with no access to backup power sources have also been hit
and switched-off air conditioners have left office workers sweating in the
summer heat.

 

“From work to home to everywhere. At the moment the lights are off and we
are using the stairs because the elevator isn’t working, and I’m on the 11th
floor 
 it’s frustrating,” Leroy Erasmus, 25, a risk and surveying
consultant, told Reuters.

 

Some firms in the mining sector, the backbone of the country’s economy, are
looking at alternatives to reduce their dependence on Eskom.

 

Harmony Gold said on Tuesday that it was in talks to build a 30 MW solar
plant to supply power to some of its assets, in an effort to cut its
electricity costs and dependence on Eskom. [nL5N2070L3]

 

Gordhan said the government was worried about the impact the power outages
could have on the economy.

 

“The Eskom board is taking steps to ensure that load shedding (power cuts)
doesn’t become a permanent feature of South Africa this year,” he said.

 

 

Nissan agrees joint venture to build Algerian car assembly plant

ALGIERS (Reuters) - Japan’s second-largest automaker Nissan Motor Co has
signed a joint venture agreement with an Algerian private partner to build a
car assembly plant at a cost of $160 million, the company said on Wednesday.

 

The plant, near the western city of Oran, is due to start production in the
first half of 2020 with a capacity of 63,500 vehicles per year, Peyman
Kargar, Nissan’s senior vice president and chairman of operations in Africa,
Middle East and India, said at a signing ceremony in Algiers.

 

Nissan’s partner, Hasnaoui Group, will hold a majority stake in the project,
which is expected to create 1,800 jobs.

 

Algeria has banned car imports as part of an attempt to cut spending due to
lower oil and gas earnings, the main source of state finances.

 

“We want to help diversify our economy,” said Hasnaoui Group’s owner Sofiane
Hasnaoui.

 

 

Former Apple lawyer charged with insider trading

US prosecutors have charged a former top Apple lawyer with insider trading.

 

Gene Levoff is accused of using confidential information to trade the firm's
securities for personal gain.

 

Mr Levoff, who was responsible for ensuring compliance with Apple's insider
trading policies, is accused of breaching those policies on several
occasions.

 

Apple fired him last year after being contacted by authorities and
conducting an internal investigation.

 

The US Securities Exchange Commission (SEC) said Mr Levoff engaged in
insider trading various times between 2011 and 2016.

 

"Levoff's alleged exploitation of his access to Apple's financial
information was particularly egregious given his responsibility for
implementing the company's insider trading compliance policy," Antonia
Chion, associate director of the SEC's division of enforcement, said in a
statement.

 

"The SEC is committed to pursuing insiders who breach their duties to
investors."

 

In 2011 and 2012, Apple's former head of corporate law made $245,000
(£193,801) in profits by engaging in insider trading, the SEC said.

 

Mr Levoff also traded Apple securities ahead of three quarterly earnings
announcements in 2015 and 2016, making approximately $382,000 in combined
profits and losses avoided.

 

The charges carry a maximum sentence of 20 years in prison and a fine of up
to $5m.--BBC

 

 

 

South African rand slumps on Eskom fears, U.S. inflation

JOHANNESBURG (Reuters) - South Africa’s rand sank more than 1 percent on
Wednesday as concerns over state power firm Eskom were compounded by a
firming dollar after a measure of U.S. inflation came in stronger than
expected.

 

At 1515 GMT the rand was 1.1 percent weaker at 13.9125 per dollar,
stretching losses to nearly 3 percent since Eskom intensified electricity
blackouts on Monday.

 

The rand, aided by signs of progress in the U.S.-China trade dispute, had
steadied in the previous session after being battered to a three-week low on
Monday and opened Tuesday trade at 13.7650. However, the sell-off resumed as
more details about Eskom’s financial stress came to light.

 

As the cash-strapped utility cut electricity for a fourth straight day, the
government said the firm was technically insolvent and would “cease to
exist” at the current trajectory by April without a bailout.

 

“If the government were to absorb 100 billion rand ($7 billion) worth of
Eskom’s debt it would trigger a leap in public debt, and if unaccompanied by
a credible turnaround strategy at Eskom, could precipitate further credit
downgrades,” Standard Bank chief economist Goolam Ballim said.

 

Markets have been unnerved by the crisis, more so with the annual budget due
on Feb. 20 and national elections in May.

 

Moody’s, the last of the top three ratings firms to rank the country’s
sovereign debt at investment level, is due to make its next credit
assessment in late March.

 

“The Eskom worries are still lingering, but the inflation numbers from the
U.S. also triggered a surge in the dollar,” said Lester Davids of Unum
Capital.

 

Bonds were weaker, with the yield on the government 10-year issue rising 14
basis points to 8.93 percent.

 

Stocks rose as rand-hedged shares, which make the bulk of their revenue
outside South Africa and tend to rise as the currency weakens, benefited
from a fall in the rand.

 

The benchmark Top-40 index rose 1.22 percent to 48,389 points while the
All-Share index gained 1.08 percent to 54,543 points.

 

Among the biggest gainers, Richemont rose 6.29 percent to 100.95 rand,
MediClinic gained 3.04 percent to 55.95 rand and British American Tobacco
closed up 4 percent at 506.26 rand.

 

Petrochemical firm Sasol was also among the top gainers on the blue-chip
index. The company closed 5.59 percent higher at 411.90 rand after shares
were boosted by production coming online from the first of seven units at
its Lake Charles chemical plant in the United States.

 

 

Orascom investment holding shares jump 5 pct on Egypt's stock market

CAIRO (Reuters) - Orascom investment holding shares jump 5 percent on
Egypt’s stock market following comments by chairman on possible investment
in Venezuela and North Korea.

 

Egyptian billionaire businessman Naguib Sawiris said on Tuesday he sees
opportunities for mining, telecoms and hotels in North Korea if a summit
between its leader Kim Jong Un and U.S. President Donald Trump later this
month is successful.

 

 

Google outlines $13bn US investment

Google plans to spend more than $13bn (£10.1bn) this year, as it builds data
centres and offices across the US.

 

The search giant promoted its plans in a blog post on Wednesday, saying the
investments would spur the creation of more than 10,000 construction jobs.

 

The firm will also add tens of thousands to its workforce, doubling its
presence in states such as Georgia.

 

Google's emphasis on its US investments comes amid wider concerns about
slowing business spending in the US.

 

Big tech firms such as Google have also faced criticism that they have not
contributed as widely to the economy by way of jobs, taxes and and other
support as the corporate giants of previous eras.

 

In the post, Google chief executive Sundar Pichai said the company had hired
more than 10,000 people in the US last year and invested $9bn.

 

That figure will grow to $13bn in 2019 and include major expansions in 14
states, including Oklahoma, South Carolina, Ohio and Nebraska.

 

Google expects 2019 to be the second year in a row it grows faster outside
of the Bay Area than in it, becoming a presence in 24 of 50 states, he said.

 

"I'm proud to say that our US footprint is growing rapidly," Mr Pichai said.

 

The investments the firm highlighted include previously announced plans to
expand in New York city.

 

Unlike Amazon, which has also said it would build a New York campus,
Google's commitment was not accompanied by a subsidy package - a move that
won the firm praise last year.

 

However, the firm's growth has spurred controversy elsewhere, amid fears of
gentrification.

 

The firm's commuter buses have been targeted in San Francisco. Last year, it
also dropped plans for offices in a trendy district of Berlin after
opposition by local campaigners.

 

The investments come as Google's parent company, Alphabet, more than doubled
its profits last year to more than $30bn, while revenue increased more than
23% to almost $137bn.

 

Despite those gains, investors have questioned Alphabet's rising costs.

 

The firm's capital expenditures increased to $25.1bn last year and operating
expenses exceeded $50bn.

 

On a call with financial analysts, Alphabet's chief financial officer said
the firm remained committed to investments, but that spending was likely to
"moderate significantly".--BBC

 

 

 

South Africa not planning to privatise Eskom after split - minister Gordhan

CAPE TOWN (Reuters) - South Africa is not planning to privatise embattled
power utility Eskom after the firm is split into three separate entities of
generation, transmission and distribution, Public Enterprises Minister
Pravin Gordhan said on Wednesday.

 

“At no stage has the president said, or the government indicated, that there
would be privatisation of any of these entities or that this is the
motivation for the separation into three entities,” Gordhan told a
parliamentary committee.

 

President Cyril Ramaphosa announced the plan to split Eskom into three
entities last week, in an effort to make the company more efficient.

 

 

First unit at Sasol's Lake Charles chemical plant starts output

JOHANNESBURG (Reuters) - Sasol on Wednesday began production at the first of
seven units at its giant Lake Charles chemical plant in the U.S, boosting
shares in the South African petrochemical group.

 

The plant in Louisiana, which will cut the company’s reliance on fuel, has
an expected output of 1.5 million tonnes of ethylene, a chemical used in
industries such as packaging, detergents and adhesives.

 

Shares in Sasol surged 4.7 percent to stand at 409 rand at 1251 GMT.

 

Sasol, whose main business transforming coal to liquid fuel helped apartheid
era South Africa side-step a 1980s oil embargo, expects the project to add
$1.3 billion to its annual core earnings, or EBITDA, in the 2022 fiscal
year.

 

The company reported core earnings of 46 billion rand ($3.32 billion) in the
2018 financial year. The capital expenditure on the project could top $11.8
billion, Sasol said in profit guidance last week.

 

($1 = 13.8745 rand)

 

 

Vodacom, Telkom welcome ECA bill withdrawal

JOHANNESBURG (Reuters) - South African mobile network operators Vodacom and
Telkom on Wednesday welcomed a government decision to withdraw a bill, which
proposed taking back licensed spectrum from operators and forcing them to
share a national network.

 

On Tuesday the Minister of Communications Stella Ndabeni-Abrahams withdrew
the Electronic Communications Amendment (ECA) Bill, which was put before
parliament in October 2018, to allow for further consultations and to align
it with a drive towards a more digital economy.

 

The withdrawal was also because parliament was unlikely to finalise the bill
during the remainder of the current term, the ministry of communications
said in a statement.

 

The move ends uncertainty over a policy which has been criticised by
industry, with the proposed Wireless Open Access Network (WOAN) seen to have
negative consequences after the government suggested mobile operators would
not get new frequencies and needed to hand back what they had.

 

“Vodacom is of the view that government’s objectives for the sector – in
terms of increasing the affordability and reach of broadband, and
accelerating economic transformation - can be achieved within the current
legislative framework,” Vodacom Group Chief Executive, Shameel Joosub said
in a statement.

 

“In particular, we are encouraged that the Ministry holds the view that the
private sector must play a greater role in the development of the
telecommunications industry.”

 

Vodacom has proposed an alternative hybrid model- comprising a competitive
WOAN with the opportunity for current operators to access spectrum.

 

Telkom also welcomed the withdrawal, saying by email: “we think this is an
opportunity for government to engage with the sector and agree on a set of
priorities to inspire investments that will promote growth and effective
competition.”

 

Meanwhile MTN noted the decision and said it would await further clarity,
while Cell C’s Chief Legal Officer Graham Mackinnon said he was “quite
surprised” it had been withdrawn.

 

The ministry said specific issues raised would be considered as part of
further consultations with all stakeholders.

 

The initial draft proposed taking back spectrum from licensed operators to
give to WOAN.

 

Creating a single open-access network lies at the heart of a government goal
to roll out mobile broadband access and drive down high data prices
hampering business development.

 

 

 

Ford warns no-deal Brexit would be 'catastrophic'

Ford has said a no-deal Brexit would be catastrophic for the firm's
manufacturing operations in the UK and that it would do "whatever is
necessary" to protect its business.

 

The comments come after a report the carmaker was stepping up preparations
to move production out of the UK.

 

Ford declined to comment directly on The Times' report, but said it had long
warned against a "hard Brexit".

 

The company is the latest carmaker to warn on the risks of a no-deal Brexit.

 

"Such a situation would be catastrophic for the UK auto industry and Ford's
manufacturing operations in the country," the company said in a statement.

 

"We will take whatever action is necessary to preserve the competitiveness
of our European business."

 

1,000 Bridgend Ford job cuts outlined

Jaguar Land Rover confirms 4,500 job cuts

Toyota urges support for PM's Brexit deal

Ford employs 13,000 people in the UK at sites in Bridgend, Dagenham,
Halewood and Dunton.

 

According to The Times' report, the firm told Prime Minister Theresa May on
a telephone call with business leaders that it was preparing alternative
sites abroad.

 

During the call Mrs May confirmed reports that the government was preparing
a package of financial support for businesses affected by a no-deal Brexit
but declined to elaborate, The Times said.

 

Job cuts

Other companies on the call delivered the same warning as Ford, the report
said.

 

Ford is the latest carmaker to sound the alarm on Brexit after Nissan said
last week it would no longer build its X-Trail car in Sunderland, in part
because of Brexit uncertainty.

 

In January, Jaguar Land Rover, the UK's biggest carmaker, said it would cut
4,500 jobs in the UK, citing geopolitical issues, regulatory disruptions,
and Brexit uncertainty. Toyota has also urged the government to avoid a
no-deal scenario.

 

In addition to Brexit worries, the car industry faces a slump in sales of
diesel cars and a slowdown in China.

 

Last month, the Unite union said Ford aimed to cut almost 1,000 jobs at its
Bridgend plant by 2021 because of challenging market conditions. The
carmaker declined to confirm the figures but said it was consulting with
unions.

 

The government has said the best way to provide certainty to industry is for
MPs to back the prime minister's Brexit deal.--BBC

 

 

UK inflation falls to two-year low in January

UK inflation fell to a two-year low in January, dragged lower by falling
energy bills and fuel.

 

The Office for National Statistics said the Consumer Prices Index (CPI) was
1.8% last month, from 2.1% in December.

 

January's fall, partly offset by higher air and ferry fares, was bigger than
economists' forecasts and comes as latest data shows wages rising by 3.3%.

 

Inflation peaked at a five-year high of 3.1% in November 2017, and was last
at 1.8% was in January 2017.

 

Economists had forecast that CPI would fall in January to 2%, the Bank of
England's inflation target.

 

Why is inflation falling?

Mike Hardie, ONS head of inflation, said: "The fall in inflation is due
mainly to cheaper gas, electricity and petrol, partly offset by rising ferry
ticket prices and air fares falling more slowly than this time last year."

 

Ofgem's energy price cap, which came into effect from 1 January 2019, helped
drive down inflation, the ONS said. However, that cap is being raised and
this is likely to feed into future CPI figures.

 

Price of flats fell in England last year

The ONS said that petrol prices were also down by 2.1% per litre between
December 2018 and January 2019 due to falling crude oil prices.

 

Hotel and restaurant prices were also lower while prices of women's and
children's clothing saw larger price drops than a year earlier.

 

What does it mean for the cost of living?

As wages are rising at 3.3%, Tej Parikh, senior economist at the Institute
of Directors, said the lower inflation was a "boon" for the economy as it
attempts to weather the effects of uncertainty.

 

"For the past two years, households have been squeezed between high prices
and weak wage growth. With inflation now at a two-year low and growing
upward momentum in pay packets, consumers are likely to feel less of a pinch
on their wallets.

 

"This easing in the cost of living should provide some uplift for the High
Street just as consumer confidence appears to be waning," Mr Parikh said.

 

Ian Stewart, chief economist at Deloitte, also highlighted the potential
relief for retailers.

 

He said falling inflation alongside rising earnings was "delivering a
powerful uplift to spending power".

 

"Brexit dominates at the moment but were Brexit risks to ease, consumers
would be well placed to hit the High Street," he added.

 

Will inflation keep falling?

Some economists think it is unlikely that inflation will fall much more. For
instance, Ofgem's energy price cap may not suppress inflation for long, as
the cap is due to rise in April.

 

Andrew Wishart, UK economist at Capital Economics, said: "The fall in CPI
inflation below the Bank of England's 2% target for the first time in two
years in January provides a further boost to households' real spending
power, but we doubt inflation will fall any further."

 

Much could depend on the course of the Brexit negotiations, according to
Howard Archer, chief economic advisor to the EY Item Club.

 

"Domestic inflationary pressures are expected to pick-up only modestly over
the coming months amid likely limited UK growth," said Mr Archer.

 

Assuming there is a Brexit deal, he said inflation could stay below 2% this
year - and even dip to 1.6%.

 

If there is not a deal, Mr Archer said the picture would be different and
the Bank of England could cut interest rates as "economic activity would
likely take a significant hit".

 

Analysis: Andy Verity, economics correspondent:

We are used to hearing that our living standards have been hit by a nasty
combination of above-target inflation, driven by rising energy prices, and
weak pay rises. So it's refreshing to hear that has gone into reverse.

 

The biggest driver of lower inflation, now below the Bank of England's 2%
target for the first time in two years, was energy. Gas and electricity
prices fell, between December 2018 and January 2019, by 8.5% and 4.9%.

 

The price cap had an effect (although prices may soon rise as the cap
rises). But there's also little inflationary pressure coming down the
pipeline - for example, from higher raw material costs for producers.

 

With pay, at the last count, rising by 3.3% living standards are now rising
faster than they have since November 2016.

 

Just because, collectively, we are now in an economic slowdown, doesn't mean
we each, individually, are getting worse off.

 

How does it compare with wage rises?

Economists would usually expect higher wages and a lower unemployment rate -
data last month showed job vacancies are at a record high of 853,000 - to
push up the rate of price increases.

 

Ben Brettell, senior economist at Hargreaves Lansdown, said the data showed
the "continued breakdown of the relationship between the labour market and
inflation".

 

"Theory dictates that a tight labour market, low unemployment and higher
wage growth, should lead to higher inflation. This means policymakers face a
straight trade-off between inflation and unemployment.

 

"But at present the inflation genie is still firmly in the bottle, despite
unemployment at multi-decade lows. This has made the Bank of England's job
much easier over the past few years," Mr Brettell said.--BBC

 

 

 

German think tank calls for EU to make Brexit concessions

The EU should offer the UK concessions over Brexit, a leading German
economic think tank has told the BBC.

 

The boss of the IFO Institute said steps should be taken to keep the "EU and
the UK in a joint customs territory after 2020".

 

Gabriel Felbermayr said German firms were being affected by the uncertainty
surrounding the terms of the UK's departure.

 

"Businesses are suffering already," he said.

 

Mr Felbermayr, director of the IFO, told BBC Radio 4's Today Programme that
German exports to the UK had fallen by about 10% in real terms since summer
2016.

 

The IFO has calculated that German GDP could be permanently lower by 0.2 to
0.5% in the long-run, with larger negative effects in the short-term.

 

"The uncertainty around this whole process is costing [German business]
dearly," he said.

 

Brexit: High-profile Germans plead with UK to stay in EU

Brexit doubts leave firms 'hung out to dry'

The concern was not so much about if there would be tariffs or controls at
the borders. "The big concern is how to get rid of this enormous uncertainty
that has been weighing on economic activity for two years now," he said.

 

While German business groups were maintaining a tough stance to avoid
undermining the European Commission's negotiating stance, Mr Felbermayr said
the EU should take a softer approach.

 

"The EU should, as a quick fix at least, offer to remove both the backstop
and the withdrawal agreement's current time limit on the mobility of goods
and capital so that the provisional agreement would keep the EU and the UK
in a joint customs territory association even after 2020 without making a
difference between Northern Ireland and the UK. That would be key," he said.

 

He said there were members of big business urging the Commission to make
concessions and find solutions "because everyone knows that both sides would
be hurt quite severely by a hard Brexit".

 

His remarks came as the UK firms accused government of leaving them "hung
out to dry" in the event of a no-deal Brexit.

 

With less than 50 days until 29 March when the UK is due to leave the EU,
the British Chambers of Commerce (BCC) said 20 key questions remain
unresolved.--BBC

 

 

 

Huawei: New Zealand needs us like rugby needs the All Blacks

Huawei is playing on New Zealanders' love of sport with an advert it hopes
will soften the rugby-mad nation's stance towards using the Chinese giant's
technology.

 

The advertisement has appeared in two major newspapers and on billboards.

 

It read: "5G without Huawei is like rugby without New Zealand."

 

New Zealand is one of several nations to block the use of Huawei equipment
for building a new 5G mobile phone network over security concerns.

 

In November, New Zealand's intelligence services, followed other countries'
lead, in concluding Huawei technology should not be used in the country's
roll-out of next-generation 5G network, citing "significant national
security risks".

 

Huawei told Radio New Zealand the concerns were "groundless" but it had
chosen to tackle the problem in what it described as "a quirky way" to
appeal to New Zealanders' better judgement. The firm argued consumers would
lose out if its technology was sidelined.

 

"New Zealanders wouldn't accept second or third best on the rugby field, and
they shouldn't have to put up with it when it comes to 5G," Huawei said.

 

'They can bark'

The advertisement comes at a time when relations between the small
Commonwealth country and its largest trading partner and Asia's dominant
economy are already under strain.

 

Why Asia isn't hanging up on Huawei

Timeline: What's going on with Huawei?

Watch: Huawei's Western Europe Vice-president Tim Watkins

New Zealand has expressed concern over China's growing influence in the
South Pacific and although Prime Minister Jacinda Ardern has been planning
to visit Beijing since the end of last year, no date has yet been fixed.

 

"Our relationship with China is a complex relationship and sometimes it will
have its challenges," said Ms Ardern in an interview with New Zealand
television.

 

She said China had decided last week to postpone the launch of a major
tourism campaign, due to take place in Wellington in a few days' time.

 

The government said Huawei's left field move, playing on New Zealanders'
love of rugby, would not affect policy decisions.

 

"They can bark as long as they like, but we have decisions to make about New
Zealand's national security interests. That's the only thing upon which we
will make a decision," said Andrew Little who oversees intelligence
services.--BBC

 

 

 

Brexit: Mark Carney warns of no-deal 'economic shock'

Bank of England governor Mark Carney has urged MPs to solve the Brexit
impasse in a speech warning of growing threats to the global economy.

 

He said a no-deal Brexit would create an "economic shock" at a time when
China's economy is slowing and trade tensions are rising.

 

"It is in the interests of everyone, arguably everywhere" that a Brexit
solution is found, he said.

 

The Bank has already cut its UK growth forecasts, partly due to Brexit
issues.

 

In a speech at the Barbican, in London, Mr Carney said trade tensions and
Brexit are "manifestations of fundamental pressures to reorder
globalisation", and that quitting the bloc could undermine global expansion.

 

"It is possible that new rules of the road will be developed for a more
inclusive and resilient global economy.

 

"At the same time, there is a risk that countries turn inwards, undercutting
growth and prosperity for all."

 

Brexit 'deal dividend' not credible, MPs say

UK economic growth slowest since 2012

Brexit has created a "high level of uncertainty", he said, and "companies
are holding back on making big decisions".

 

As such, he said it was vital for the UK economy to secure a good withdrawal
deal and a smooth transition.

 

"A no-deal would be an economic shock for this country, and this would send
a signal globally about re-founding globalisation. That would be
unfortunate," he said.

 

Global concerns

At a global level, Mr Carney said that growth had been slowing in "all
regions" since 2016 after peaking at 4%.

 

He said that growth was likely to stabilise, but warned that a further
slowdown in China, rising trade tensions and complacency could get in the
way.

 

"The Bank of England estimates that a 3% drop in Chinese GDP would knock 1%
off global activity, including half a per cent off each of UK, US and euro
area GDP," he said.

 

He added that a "larger increase in tariffs of 10 percentage points between
the US and all of its trading partners could take 2.5% per cent off US
output and 1% off global output."

 

The governor urged policymakers everywhere to address economic risks rather
than ignore them.

 

"Although the economic and financial imbalances in the global economy do not
yet appear to contain the seeds of their own demise, global momentum is
softening," he said.--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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