Major International Business Headlines Brief::: 20 February 2019

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Major International Business Headlines Brief::: 20 February 2019

 


 

 


 <http://www.nedbank.co.zw/> 

 


 

 


 

 

*  South Africa needs to invest to rebuild confidence in power sector - minister

*  MTN faces more problems in Uganda as authorities query its sales figures

*  South Africa's updated long-term energy plan to be ready in March - minister

*  Kumba Iron Ore 2018 headline earnings edge lower

*  Ford scales back in South America

*  Drone no-fly zone to be widened after Gatwick chaos

*  Trade war: Trump says no 'magical date' for US-China deal

*  Brexit: UK will apply food tariffs in case of no deal

*  Estonia orders Danske Bank branch to shut

*  Honda confirms Swindon car plant closure

*  HSBC profits hit by China slowdown

*  UK employment hits another record high

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

South Africa needs to invest to rebuild confidence in power sector - minister

JOHANNESBURG (Reuters) - South Africa needs to invest more to rebuild confidence in its ability to supply power, its energy minister said on Tuesday, after its state-run power firm was forced to implement some of the worst blackouts in years.

 

Problems at cash-strapped national power firm Eskom have shaken belief in South Africa’s ability to power the continent’s most industrialised economy, and hit business including in key sectors like mining.

 

President Cyril Ramaphosa has promised to split Eskom into three entities to make it more efficient, but labour unions and some within the governing African National Congress party view his plan with suspicion as it could loosen the state’s grip over the power sector.

 

“We have to instil confidence in our ability to provide reliable power,” Energy Minister Jeff Radebe said at a conference in Johannesburg, adding Ramaphosa’s efforts to entice investment could otherwise be undermined.

 

“Deteriorating Eskom plant performance driven by old generation infrastructure confirms that we are now in need of more investment in new generation capacity,” he said.

 

Years of mismanagement and governance problems at Eskom have left the company, which supplies 90 percent of South Africa’s power, saddled with debt and ailing power plants, a situation Radebe described as “untenable”.

 

Ramaphosa has been at pains to revive troubled state firms, which weigh on confidence in government finances and the economy, but the extent of their difficulties and disagreements over the way forward mean progress has been slow.

 

South Africa’s largest trade union federation COSATU said on Tuesday a meeting with Ramaphosa and senior ministers including Radebe over the plan to divide up Eskom had failed to resolve differences over the policy.

 

“There was no breakthrough in the impasse over the unbundling of Eskom. We still need more detail,” COSATU spokesman Sizwe Pamla said.

 

The last time unions launched major strikes at Eskom, midway through last year, power production quickly suffered.

 

Radebe also said on Tuesday an updated version of the country’s long-term energy plan would be ready next month, later than initially planned.

 

Asked whether the government was looking to renegotiate the terms of older renewable energy projects, as another minister suggested this week, Radebe said the government would hold a news conference on its policy on independent power producers in the coming days.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 



MTN faces more problems in Uganda as authorities query its sales figures

KAMPALA (Reuters) - Uganda accused the country’s biggest telecoms operator, MTN Uganda, on Tuesday of underdeclaring its sales and causing public revenue losses, in a further souring of relations with the South African-owned company.

 

Uganda deported MTN Uganda’s Chief Executive Wim Vanhelleputte last week, the fourth MTN official to be expelled from the East African country in less than a month on accusations of compromising national security.

 

The company is a unit of South African telecoms giant MTN Group, which has also had problems in Nigeria where the central bank last year accused it of repatriating $8 billion without the correct paperwork. The row was later resolved after the company paid a token settlement.

 

MTN Uganda has over 10 million subscribers and competes chiefly with the local unit of India’s Bharti Airtel.

 

Relations between the government and the company have been tested over the past year by a series of setbacks including a security raid on the company’s data centre, delayed renewal of its operating license and the expulsions of its executives.

 

The company has also been under political pressure to list its shares on the local bourse to facilitate domestic ownership of the company and ensure more of the money it earns stays in the country.

 

Government spokesman Ofwono Opondo said scrutiny of MTN came after the government acquired the capacity to monitor telecom firms’ transactions for tax compliance and reporting purposes.

 

“It is as a result of that technical capacity that MTN and its officials have run afoul,” he said.

 

“They have been found that in some instances they have not been making full declarations of transactions which constitutes undermining Uganda’s economy.”

 

Ugandan President Yoweri Museveni has repeatedly accused telecom firms in the country of cheating taxes by underreporting the volume of their calls and data sales, but has not named any companies.

 

MTN Uganda’s spokeswoman Justina Ntabgoba said the government had not been given any details of the alleged underreporting of transactions.

 

“We have not gotten any official communication, so we don’t have a response. Once we receive an official communication then we can respond,” she said. Opondo also accused the expelled MTN officials of compromising Uganda’s national security by “providing backend access to unauthorised persons for whatever reasons. That’s what these officials of MTN did, opening backend for Uganda’s data system to other unauthorised persons.” He said the reasons were likely espionage or economic sabotage and that the motivation was still under investigation.

 

MTN’s Ntabgoba declined to comment on the accusations, saying only that the government had not informed the company of the reasons for the executives’ deportations. MTN has been operating in Uganda since 1998 when it secured a 20-year operating license that expired last October. In 2017 it began a process to obtain a 10-year extension but that has dragged on amid disagreements over the size of the fees to be paid for the extension and other issues.

 

The Uganda business contributes about 4 percent of MTN Group’s earnings before interest, depreciation and amortisation.

 

 

 

South Africa's updated long-term energy plan to be ready in March - minister

JOHANNESBURG (Reuters) - South Africa plans to finish an updated version of its long-term energy plan in March after talks with business and labour leaders, Energy Minister Jeff Radebe said on Tuesday.

 

Radebe had told Reuters in January that an update to the closely-watched Integrated Resource Plan (IRP) would be ready in February.

 

 

Kumba Iron Ore 2018 headline earnings edge lower

JOHANNESBURG (Reuters) - South Africa’s Kumba Iron Ore Ltd on Tuesday reported slightly lower full-year headline earnings for 2018, due to a dip in revenue and lower sales volumes.

 

The company, a unit of Anglo American, said headline earnings came in at 30.28 rand ($2.14) per share in the year ended Dec. 31, 2018, compared to 30.47 rand a year ago.

 

Headline EPS is the primary profit measure in South Africa, and strips out certain one-off items.

 

Revenues also fell by 1 pct to 45.7 billion rand.

 

The firm had reached a number of milestones in 2018, and achieved cost savings of 1 billion rand ($70.72 million) verses a target of 800 million rand, Kumba Chief Executive Officer Themba Mkhwanazi said in a statement.

 

“Alongside the solid performance achieved, Kumba has significant value to unlock,” he said.

 

“While challenges are part of the uncertain environment that we operate in... we have the right strategy and teams in place to create sustainable shareholder value.”

 

One such challenge facing the firm over 2018 was problems at state-run rail, port and pipeline firm Transnet, allegedly linked to state corruption and struggling financially.

 

Alongside seven train derailments, Kumba said it was affected by the closure of an iron ore export line after a truck collided with a bridge, prompting a 3.3 percent decline in the volumes of ore Kumba railed to port and a 4 percent decline in export sales volumes. The line has since reopened.

 

Kumba said it had improved engagement with Transnet, and continued to work with the company to increase efficiency and achieve maximum rail capacity.

 

The firm had already announced total production volumes would be four percent lower than 2017, at 43.1 million tonnes.

 

($1 = 14.1393 rand)

 

 

Ford scales back in South America

Ford has said it will close a factory in Brazil after more than 50 years as it stops selling heavy commercial trucks in South America.

 

The US carmaker said it saw "no viable path to profitability" for the Sao Bernardo do Campo plant, which employs about 2,800 people.

 

The closure is the latest move in a bigger global restructuring.

 

It follows warnings of thousands of job cuts in the UK and mainland Europe.

 

Lyle Watters, president of Ford of South America, said Ford remained "committed" to the South American region.

 

He said the firm was focused on improving its product offerings and implementing "a leaner, more agile business model".

 

About 2,800 job cuts are expected, according to labour organisations - a blow in a country where the unemployment rate is already above 10%.

 

"We know this action will have a major impact on our employees in São Bernardo and we will be working closely with all our stakeholders on the next steps," Mr Watters said.

 

The facility currently produces Cargo trucks, F Series pick-ups and the Fiesta.

The decision to close the factory and exit the heavy truck business comes as Ford grapples with a sharp decline in profits driven by its international operations.

 

In South America, revenue fell 9% last year and the firm lost market share in most countries.

 

In addition to the Sao Bernardo closure, Ford recently stopped making its Focus car in Argentina.

 

The company said it had also slashed salaried and administrative costs in the region by more than 20% in the past few months.

 

'Major impact'

The Sao Bernardo do Campo facility currently produces Ford Cargo trucks, certain F Series trucks and the Fiesta car.

 

Sales of those models will end after its inventories are sold, Ford said.

 

The closure is expected to cost Ford about $460m, with much of those costs due to separation and termination payments for employees, dealers and suppliers.

 

The Sao Bernardo do Campo assembly plant is one of two Ford factories in Brazil and has been operational since 1967.

 

It is located near Sao Paulo, in an area with a rich history of car-making and unionised labour, which helped to launch the career of former Brazilian president Luis Inácio Lula da Silva.--BBC

 

 

 

Drone no-fly zone to be widened after Gatwick chaos

The no-fly zone for drones around airports is to be extended following the disruption at Gatwick in December, the government says.

 

>From 13 March it will be illegal to fly a drone within three miles of an airport, rather than the current 0.6-mile (1km) exclusion zone.

 

The government also said it wants police to have new stop and search powers to tackle drone misuse.

 

Gatwick was shut for more than a day after drone sightings near the runway.

 

It caused chaos for travellers, affecting more than 1,000 flights and about 140,000 passengers.

 

Gatwick drones were in critical areas

Drone sighting disrupts Heathrow flights

Since then airports have been trying to improve their procedures to detect drones, but they continue to see illegal flights near their perimeters.

 

In January departures at Heathrow were temporarily stopped after a drone was reportedly sighted.

 

Transport Secretary Chris Grayling said: "The law is clear that flying a drone near an airport is a serious criminal act.

 

"We're now going even further and extending the no-fly zone to help keep our airports secure and our skies safe.

 

"Anyone flying their drone within the vicinity of an airport should know they are not only acting irresponsibly, but criminally, and could face imprisonment."

 

There were sightings of drones at Gatwick in December

Stop and search

It is already illegal to fly a drone above 400ft or within 1km of an airport boundary, and those who recklessly or negligently endanger an aircraft with a drone face up to five years in jail.

 

The government said the new stop and search powers would apply to people suspected of using drones maliciously nears airports.

 

The powers, to be included in the government's new Drones Bill, would also allow police to access electronic data stored on a drone.

 

The Association of Remotely Piloted Aircraft Systems (Arpas UK), which represents the drone industry, welcomed the wider no-fly zone but cautioned on the stop-and-search plans.

 

"Police will need to know exactly what the rules are and in exercising their powers do so in the right way," said Rupert Dent, an Arpas UK committee member.

 

"We are keen it doesn't prevent legitimate operators from operating drones in a legitimate fashion."

 

Eye witness accounts

Following the Gatwick disruption, Sussex Police arrested a drone enthusiast and his partner who lived near the airport, but they were released without charge on 23 December, having been cleared of any involvement.

 

In a statement Sussex Police said they had still not found the perpetrators, despite having 130 eyewitness accounts of illegal drone flights.

 

"We continue our criminal investigation, which is challenging in its scale and in the type and quality of evidence immediately available," a spokeswoman said.

 

"Despite a reward of £50,000 for public information leading police to the person or persons responsible, we have not received the critical information that we believed exists within the community."--BBC

 

 

Trade war: Trump says no 'magical date' for US-China deal

US President Donald Trump has said he may not increase tariffs on Chinese products on 1 March, as previously threatened.

 

The reversal comes as the two countries continue trade talks in Washington this week, after earlier discussions in China.

 

The US had said it would impose higher tariffs on Chinese goods if the two sides did not strike a deal by 1 March.

 

But Mr Trump has appeared more flexible in recent comments.

 

"I can't tell you exactly about timing," he said on Tuesday when asked how likely the US was to impose additional duties on 1 March.

 

"The date is not a magical date because a lot of things are happening."

 

Three things the US and China will never agree on

Firms look to new factories as tariffs bite

A quick guide to the US-China trade war

The US has already imposed tariffs on $250bn (£193bn) worth of Chinese goods, and China has retaliated by imposing duties on $110bn of US products.

 

In December, both countries agreed to halt new tariffs for 90 days to allow for talks.

 

However, the US had said it would increase tariff rates on $200bn worth of Chinese imports from 10% to 25% if the two sides did not reach a deal.

 

Mr Trump has also threatened further tariffs on an additional $267bn worth of Chinese products.

 

Washington is pressing Beijing to make changes to its economic policies, which it says unfairly favour domestic companies through subsidies and other support.

 

It has also accused the government of supporting technology theft as part of its broader development strategy, while in China there is a sense that the US is using the trade war to contain the country's rise.--BBC

 

 

Brexit: UK will apply food tariffs in case of no deal

Environment Secretary Michael Gove has promised that the government will apply tariffs to food imports in the event of a no-deal Brexit, to provide "specific and robust protections" for farmers.

 

His remarks come as the government is poised to release details of tariffs (taxes on imports) that would apply to thousands of products coming in from around the world, if the UK leaves the EU without a deal.

 

Many supporters of Brexit argue that tariffs on food and other items should be scrapped in order to lower prices for consumers. But farmers fear that cheap imports and lower standards would destroy many parts of British agriculture.

 

"Your concerns have absolutely been heard," Mr Gove told a conference of the National Farmers' Union (NFU). "It will not be the case that we will have zero-rate tariffs on food products.

 

"There will be protections for sensitive sections of agriculture and food production."

 

He added that an announcement on a no-deal tariff schedule "should be made later this week".

 

How many trade deals has the UK done?

What is the WTO option?

"If you obliterate the tariff wall… we would be massively undermined by food produced to standards that would be illegal to produce to in this country," NFU president Minette Batters told the BBC.

 

"It would decimate British agriculture - it is quite honestly as simple as that," she added.

 

Similar concerns have been expressed in other sectors of the economy, and many business leaders fear the government could be tempted to cut tariffs at their expense.

 

Factbox: How do tariffs work?

If countries don't have free-trade agreements, they trade with each other under rules set by the World Trade Organization (WTO).

 

Each country sets tariffs on goods crossing its borders. All EU countries share common tariffs because they're all signed up to the customs union.

 

EU tariffs on most agricultural products can be very high - dairy averages more than 35% and for some meat products, such as lamb, it is more than 40%.

 

As the UK is still a member of the EU, it applies EU tariffs to goods coming in from the rest of the world, but has no tariffs with the EU itself.

 

But Brexit will change that.

 

The UK could choose to reduce the tariffs for goods coming from the EU - in order to keep trade flowing through ports like Dover. But it would have to offer the same reductions to all other countries as well.

 

'Devastating'

A letter seen by BBC News, sent to Theresa May this week by the British Ceramic Confederation (BCC), urges the prime minister to consider the threat to British manufacturing jobs posed by the possible impact of zero tariffs on the ceramic sector.

 

"Unlike agriculture," the letter says, "we have not had a promise that our sector would be protected even in the short term."

 

The current EU tariff on ceramic tableware is 12%, and the letter warns that "the shock of zero tariffs (in the UK) would be devastating, affecting business, jobs and communities across the country."

 

The ceramic industry is worried that cheap imports could push local manufacturers out of business

BCC Chief Executive Laura Cohen says that could mean cheap Chinese imports flooding into the country and pushing local manufacturers out of business.

 

The BCC has been talking to UK officials about the impact of a possible unilateral decision to move to zero-tariff rates for more than six months but Dr Cohen says "most other sectors have not had that level of discussion".

 

Selection of product types from WTO World Tariff profile 2018

"There has been no comprehensive formal consultation, no comprehensive impact assessment and no prolonged transition proposed," the BCC letter says.

 

"Such a significant decision would have far-reaching consequences for the UK economy and would demand full Parliamentary scrutiny."

 

Appearing before the International Trade Select Committee on 6 February, Liam Fox said he was carefully considering all the options for tariffs in the event of no deal.

 

"Unilateral liberalisation [reducing tariffs to zero] is not what I would propose, and I have not heard anyone else in government propose it," he said.

 

"Throughout, there needs to be a balance between the impact on consumers and the impact on producers. The government are very clear that they need to give protection where necessary, but without becoming protectionist."--BBC

 

 

 

Estonia orders Danske Bank branch to shut

Estonia has told Danske Bank to close its branch in Tallinn before the end of 2019 after a money-laundering scandal.

 

Chief executive Thomas Borgen resigned last year after an investigation into payments of about €200bn (£174bn) which were made through the branch.

 

The bank said many of those payments were suspicious.

 

Interim chief executive Jesper Nielsen said the bank would comply and would also close most of its activities in Latvia, Lithuania and Russia.

 

However, its shared services centre in Lithuania will stay open.

 

"We acknowledge that the serious case of possible money-laundering in Estonia has had a negative impact on Estonian society and finds it best that Danske Bank discontinues its Estonian banking activities," Mr Nielsen said in a statement.

 

The Danske Bank branch must close within eight months and repay its clients their deposits.

 

Kilvar Kessler, head of Estonia's banking regulator Finantsinspektsioon, said: "We have every right to put an end, once and for all, to this, as large-scale violations of the local rules have been committed, and this has dealt a serious blow to the reputation of the Estonian financial market."

 

The incident has led the European Banking Authority to open an investigation into possible breaches of EU law by the financial authorities of Estonia and Denmark.--BBC

 

 

 

Honda confirms Swindon car plant closure

Honda has confirmed it will close its Swindon car plant in 2021, with the loss of about 3,500 jobs.

 

The Japanese company builds 160,000 Honda Civics a year in Swindon, its only car factory in the EU.

 

Honda said the move was due to global changes in the car industry and the need to launch electric vehicles, and it had nothing to do with Brexit.

 

Business Secretary Greg Clark said the decision was "devastating" for Swindon and the UK.

 

A fall in demand for diesel cars and tougher emissions regulations have shaken up the car industry.

 

Honda workers 'betrayed' by Swindon plant closure

Ian Howells, senior vice-president for Honda in Europe, told the BBC: "We're seeing unprecedented change in the industry on a global scale. We have to move very swiftly to electrification of our vehicles because of demand of our customers and legislation.

 

"This is not a Brexit-related issue for us, it's being made on the global-related changes I've spoken about.

 

"We've always seen Brexit as something we'll get through, but these changes globally are something we will have to respond to. We deeply regret the impact it will have on the Swindon community."

 

Mr Howells said that, in the light of changes in the industry, the company had to "look very closely" at where it was putting its investment.

 

The company sells many more vehicles in North America, Japan and China than it does in Europe.

 

"It has to be in a marketplace of a size for Honda, where it makes investment worthwhile.

 

"The conclusion coming out of that is that that doesn't include Swindon - the relative size of the marketplace in Europe is significantly different."

 

Honda said it would begin consulting immediately about the proposed closure with potentially affected employees.

 

A union source told the BBC that Honda had sent the workforce at its Swindon factory home for the day.

 

Honda also announced it would stop making the Civic at its plant in Turkey in 2021. Its European HQ will continue to be located in the UK after the changes.

 

Earlier this month, Nissan switched plans to build its X-Trail SUV from the UK to Japan.

 

At that time the firm's Europe chairman, Gianluca de Ficchy, said that "the continued uncertainty around the UK's future relationship with the EU is not helping companies like ours to plan for the future".

 

Honda says the Swindon closure is not Brexit-related. Is this the unvarnished truth, or is the company simply trying to avoid a political storm?

 

Honda has in the past been vocal about the difficulties a disorderly Brexit would bring, and the timing of the announcement, a little more than a month before the UK leaves the European Union, is curious.

 

But the Honda statement makes no mention of Brexit at all, instead pointing to the greater forces that are reshaping the car industry.

 

Honda is not, on the world stage, a big player, being dwarfed by the likes of Toyota, Volkswagen, General Motors and Ford.

 

It needs to find the resources to invest in electric power plants and autonomous vehicles - a strain that has already led to its larger rivals closing plants and cutting jobs.

 

Honda said it needed to invest in these new frontiers and concentrate its production resources where it could be sure there would be high volumes.

 

Swindon, which has had one of its two production lines shut for several years and which makes only 160,000 cars a year, does not fit that future. Nor does an even smaller plant in Turkey.

 

Brexit issues may be lurking in the background, but Honda's real reasons for closing Swindon are about the future of the global car industry, not Britain's future relationship with Europe.

 

Nissan £60m in doubt after investment U-turn

Panasonic to move European HQ from UK

Sony to shift EU headquarters to avoid Brexit disruption

Jaguar Land Rover posts £3.4bn loss

The EU and Japan recently struck a trade deal which lowers tariffs on both parties' car exports to zero.

 

BBC business editor Simon Jack said the trade deal means there is a dwindling rationale to base manufacturing inside the EU.

 

He said production at Swindon had also been in decline for some time, with the plant currently running at about half its capacity.

 

'Deeply disappointing'

Business Secretary Greg Clark said he would convene a taskforce with local MPs, civic and business leaders, as well as trade union representatives, to help Honda workers get new skilled jobs.

 

"The automotive industry is undergoing a rapid transition to new technology," he said.

 

"The UK is one of the leaders in the development of these technologies and so it is deeply disappointing that this decision has been taken now."

 

Alan Tomala from Unite said the scale of job losses was "enormous"

'Betrayed': The reaction from Swindon

Unite union official Alan Tomala said employees at the Swindon factory felt "betrayed" by the closure announcement.

 

"They feel that the company owes them a little more than hearing the news in the media.

 

"I left work yesterday to 57 missed calls and around 130 emails, and not one from Honda. It surprises me and I'm angered by it."

 

Outside the factory gates, employee Chris, whose son also works at the plant, told the BBC he was "extremely disappointed".

 

"I've been here 19 years and it's devastating for all involved," he said.

 

"You've only got to look across the road at the large warehouses here too, I don't know what the jobs will be replaced with."

 

Local employment agencies have begun setting up meetings to prepare employees.

 

Kath Curr, managing director of C&D Recruitment in Swindon, said the closure was "devastating for the town as a whole", but Honda workers' skills were "completely transferrable" .

 

In a joint statement, Adam Marshall, director general of the British Chambers of Commerce, Phil Smith, chief executive of Business West, and Paul Britton, chief executive of Thames Valley Chamber of Commerce, said the planned closure of the Swindon plant would have a major impact, not only on Honda staff but also on the company's supply chain.

 

"Given the size of the operation, there will be a wide and diverse network of regional suppliers that will now be hugely concerned about their future business prospects.

 

"Employers, government and local authorities must do all they can to deliver tangible assistance and guidance for the people and communities that will be affected by an announcement of this scale," they added.--BBC

 

 

HSBC profits hit by China slowdown

HSBC has reported a lower-than-expected 15.9% rise in pre-tax profits for 2018, partly because of an economic slowdown in China and Hong Kong.

 

Europe's largest bank made $19.9bn (£15.4bn) before tax last year, compared with $17.2bn in 2017.

 

Reported revenue was $53.8bn, a rise of 5% from the previous year.

 

HSBC makes three-quarters of its profits in Asia, and China's trade war with the US was one reason for problems with its economy near the end of 2018.

 

Group chairman Mark E Tucker said that the bank was "in a strong position".

 

He added: "Despite a challenging external environment in the fourth quarter, all of our global businesses delivered increased profits."

 

New HSBC headquarters opens in Birmingham

HSBC sparks controversy with ad campaign

HSBC bank confirms US data breach

Last June, new group chief executive John Flint set out eight targets for the bank to achieve, including accelerated growth from Asia and its international network, and growth in its UK customer base.

 

He said the latest results were good and showed that progress had been made towards achieving these goals.

 

Mr Flint added that the bank was ready for Britain's departure from the European Union next month, and said that its operations in France "gives us a major advantage in this regard".

 

Eoin Murray, head of investment at Hermes fund managers, told BBC Radio 4's Today Programme that he expected a "modestly negative" reaction to HSBC's results.

 

"If you look at the bigger picture, HSBC is still an incredibly profitable institution. It is pivoting towards Asia... and that strategy appears to be successful".

 

Steve Clayton, manager of the Hargreaves Lansdown Select UK Income Shares Fund, said: "HSBC has always been a bank built around facilitating international trade between Asia and the rest of the world.

 

"Today's tariff spats between the US and China are hardly helpful and could begin to hurt the group's customers in Asia and beyond."

 

However, he added that while the results were "disappointing", the bank "can hardly be described as in crisis".

 

HSBC said it was planning to increase the salaries of its directors by 3.3% this year - which it said was in line with the average for its UK employees. It is the first salary rise for executive directors since 2011.

 

The bank is also asking shareholders to approve a new pay policy for its directors at April's annual general meeting.--BBC

 

 

 

UK employment hits another record high

The number of people in work in the UK has continued to climb, with a record 32.6 million employed between October and December, the latest Office for National Statistics figures show.

 

Unemployment was little-changed in the three-month period at 1.36 million.

 

The jobless rate, remaining at 4%, is at its lowest since early 1975.

 

Weekly average earnings went up by 3.4% to £494.50 in the year to December - after adjusting for inflation, that is the highest level since March 2011.

 

The number of people in work between October and December was up 167,000 from the previous quarter and 444,000 higher than at the same time in 2017.

 

The employment rate - defined as the proportion of people aged from 16 to 64 who are working - was estimated at 75.8%, higher than the 75.2% from a year earlier and the joint-highest figure since comparable estimates began in 1971.

 

Employment Minister Alok Sharma said: "While the global economy is facing many challenges, particularly in sectors like manufacturing, these figures show the underlying resilience of our jobs market - once again delivering record employment levels."

 

ONS deputy head of labour market Matt Hughes said: "The labour market remains robust, with the employment rate remaining at a record high and vacancies reaching a new record level.

 

"The unemployment rate has also fallen, and for women has dropped below 4% for the first time ever."

 

However, Andrew Wishart, UK economist at Capital Economics, warned that next month's figures may not be so buoyant.

 

"The labour market data didn't reflect the slip in hiring surveys in December, with employment rising," he said.

 

"However, the surveys deteriorated more markedly in January, so a Brexit effect might start to weaken employment growth in the next batch of official data."

 

The jobs market remains in a robust shape despite the loss of momentum in the economy towards the end of last year - although the Brexit fog effect may be yet to register.

 

Continuing recent trends, the majority of those entering work were previously inactive (students, looking after home, long-term sick etc).

 

The demand for labour continues to bolster wage growth. Real wages increased by more than 1% per year, better on the whole than in recent years although about half the rate of the pre-crisis era.

 

So little sign of Brexit uncertainty hitting hiring so far - but demand in the labour market tends to lag significantly behind changes in output.

 

More recent employment surveys show a marked deterioration in January, so a Brexit effect might start to weaken employment growth in the next batch of official data.

 

And productivity - output per hour - was down by 0.2% in the fourth quarter of 2018 versus a year previously, as output rose more slowly than employment. The lack of progress in this area could weigh on wage growth in the longer term.

 

Skill shortages

Looking at the average earnings figures, Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "With surplus labour extremely scarce and job vacancies rising to a new record high, workers are having more success in obtaining above-inflation pay increases.

 

"Looking ahead, we doubt that wage growth will slip below 3% this year."

 

Despite the wage increases and low unemployment figures, Suren Thiru, head of economics at the British Chambers of Commerce, did not think that struggling High Streets would benefit.

 

He said: "The uplift to consumer spending from the recent improvement in real pay growth is likely to be limited by weak consumer confidence and high household debt levels.

 

"The increase in the number of vacancies to a new record high confirms that labour and skills shortages are set to remain a significant a drag on business activity for some time to come, impeding UK growth and productivity."--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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Invest Wisely!

Bulls n Bears 

 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

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Blog:            <http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

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Skype:         Bulls.Bears 



 

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