Major International Business Headlines Brief::: 26 February 2019

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Major International Business Headlines Brief::: 26 February 2019

 


 

 


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*  Zimbabwe to manage volatility of new RTGS currency - finmin

*  In tentative rollout, Zimbabwe banks start trading new currency

*  Britain, S.Africa finalising interim post-Brexit trade deal

*  Nigeria stocks, bonds rise after presidential election

*  South Africa's rand gains on trade deal hopes; stocks weak

*  South Africa's Sasol half-year profit rises

*  KenGen gets contract with Ethiopian Electric Power for geothermal
drilling

*  Zambia, Zimbabwe cut Kariba Dam power generation

*  Steinmetz's BSGR to walk away from Guinea's Simandou -statement

*  Tunisia central bank says dinar hard to defend as reserves fall

*  China's Xiaomi unveils $680 smartphone, sees growth in Africa

*  Tesla's Elon Musk may be in contempt over tweet

*  Eurostar owner allays Brexit chaos fears

*  UK to keep trade penalties post-Brexit

*  Etsy shares surge as revenue hits $200m

*  No-deal Brexit risks 'full-blown economic crisis'

*  Laura Ashley faces possible takeover bid

*  Karren Brady quits Philip Green's empire amid controversy

*  Investment scam targets Instagram users

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

Zimbabwe to manage volatility of new RTGS currency - finmin

(Reuters) - Zimbabwe’s central bank will buy or sell dollars to manage
volatility in the RTGS currency it launched last week, Finance Minister
Mthuli Ncube said on Monday, adding that the level of 2.5 RTGS to the U.S.
dollar was appropriate for now.

 

Ncube told Reuters in an interview in Harare that investors should not worry
about the Zimbabwean government ramping up issuance of Treasury bills. He
said: “That tap is closed for now.”

 

Zimbabwe ditched a discredited 1:1 dollar peg for its dollar-surrogate bond
notes and electronic dollars last week, merging them into a lower-value
transitional currency called the RTGS dollar. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 



In tentative rollout, Zimbabwe banks start trading new currency

HARARE, Feb 25 (Reuters) - Zimbabwe’s commercial banks started trading the
RTGS dollar on Monday, but authorities offered no indication as to how
ordinary citizens would interact with the country’s new transitional
currency five days after it was introduced.

 

Zimbabwe ditched a dollar peg for its surrogate bond notes and electronic
dollars on Wednesday, merging them into the RTGS dollar in an effort to
revive a crippled economy and address a cash crunch that has undermined
President Emmerson Mnangagwa’s efforts attract foreign investment.

 

The central bank sold U.S. dollars to banks at 2.5 RTGS dollars on Friday
morning, and on Monday lenders began trading the currency with corporate
customers and on an interbank market.

 

There had been indications that ordinary Zimbabweans would be able to buy
U.S. dollars with bond notes or electronic dollars from Monday.

 

But a Standard Chartered bank teller in Harare said her branch was not
selling dollars to individuals yet, and downtown bank queues were no longer
than normal as people made their way to work.

 

Kudakwashe Mukora, an electrician who had just come out of the branch, said:
“At the moment we’re just shooting in the dark. The government isn’t
addressing the fundamental issue which is that the black market is in
charge.”

 

On Monday one U.S. dollar was being sold on the black market for four
electronic dollars - which have been locked in individuals’ accounts for
months due to the chronic cash shortages - compared to 4.20 on Friday,
currency traders said.

 

An employee at a Stanbic branch said the bank was offering U.S. dollars to
corporate clients at 2.5625 RTGS dollars and buying dollars at 2.4 RTGS. She
said the idea was that individuals would be able to buy and sell dollars at
a later date, but she wasn’t sure when.

 

The central bank has promised a “managed float” of the RTGS - which stands
for the real-time gross settlement system banks use to transfer money - but
it is not clear how it will control the currency’s movements given that it
does not have significant foreign exchange reserves.

 

“The big players are holding onto their money, that is what is holding rates
at the moment. In the next week or two, it should be clear whether the
interbank is working or not,” one trader at Harare’s Eastgate shopping
centre said.

 

Zimbabwe’s currency problems date back to the hyperinflation era of
post-independence leader Robert Mugabe, who Mnangagwa replaced after an army
coup in November 2017.

 

International attitudes to Mnangagwa’s government have hardened since a
violent security crackdown last summer on post-election protests and on
demonstrations last month against a major fuel hike.

 

 

 

Britain, S.Africa finalising interim post-Brexit trade deal

JOHANNESBURG (Reuters) - South Africa is close to signing an interim trade
agreement with Britain that would replicate arrangements with Europe and
ensure trade will not be disrupted in the event of a hard Brexit, South
African Trade Minister Rob Davies said on Monday.

 

With just a month to go before Britain is due to leave the European Union,
London has been trying to strike agreements with trade partners around the
world to replicate the terms it now has as a member of the bloc.

 

“We are very, very close to concluding a bilateral agreement with the UK
which is essentially a roll over ... of the partnership agreement,” he said
in a phone interview, referring to South Africa’s current agreement with the
EU.

 

South Africa is Britain’s biggest partner in Africa with trade worth over 9
billion pounds ($11.77 billion) in 2017. Metals and other commodities, cars
and car parts, machinery, fruit and beverages are among the main traded
goods.

 

Without an agreement in place, that trade would become subject to higher
tariffs that would hit key industries in both countries essentially
overnight in the event of a hard or no-deal Brexit on March 29.

 

The deal being finalised would create a transition period for the two sides
to reach a more permanent deal, once Britain’s future relationship with the
EU and its new trade profile becomes clear.

 

Davies said some elements couldn’t simply be recreated in the bilateral
agreement, and required negotiation.

 

Some of those provisions were still being discussed, he said, though other
difficult issues including tariff quotas on agricultural exports had already
been settled.

 

However, some Brexit risks, such as the impact of an economic slowdown in
the EU, could not be mitigated against, he said.

 

“If supply chains in Europe are adversely affected and Europe starts to have
some kind of external shock challenges, there’s not too much we can do about
that,” he said, adding this could hit industries like South Africa’s auto
sector.

 

($1 = 0.7648 pounds)

 

 

Nigeria stocks, bonds rise after presidential election

LAGOS (Reuters) - Nigeria’s stocks and bonds rose on Monday after the
conclusion of a presidential election over the weekend lifted a layer of
political uncertainty in Africa’s biggest economy, traders said.

 

The electoral body has started to count votes in the closely-fought election
that pitted President Muhammadu Buhari against businessman Atiku Abubakar
but it is unclear when the winner will be declared.

 

Stocks rose 0.43 percent to 32,655 points while a rise in bond prices was
more pronounced in longer-dated, local currency bonds such as the 2028
issue. Yields on the 10-year paper fell to 14.5 percent on Monday from a
previous close of 14.68 percent.

 

No major trades occurred on the naira currency on Monday, traders said, as
investors await the result of the vote. But on the forward market, the naira
firmed to 396 per dollar, up from 401 posted a week ago.

 

“Barring any negative surprises at the polls, we anticipate a positive start
to this week’s trading as investors price in improved certainty upon
conclusion of the general elections,” analysts at Vetiva capital wrote in a
note.

 

The election had been scheduled to take place on Feb. 16 but, just hours
before it was due to begin, the electoral body postponed it by a week,
citing problems in delivering ballot papers and results sheets to some parts
of the country.

 

The head of the African Union observer mission said on Monday that the
election had taken place in a generally peaceful environment. But the U.S.
observer mission said the week-long delay had damaged public confidence in
the process and probably reduced voter turnout.

 

Nigeria’s dollar-denominated eurobonds shuffled higher as investors waited
on the first flurry of regional results. Longer-dated bonds with maturities
as far off as 2049 climbed almost 0.5 cents in the dollar and having risen
for the last five days running, they had more than made up for the losses
suffered a week ago when the election was postponed.

 

“The market opened on a constructive note ... as evidenced by a receiving
bias in USD/NGN forwards, supportive local bond performance and moderate
gains in Eurobonds,” said Samir Gadio, head of Africa strategy at Standard
Chartered Bank.

 

“The risk-on global backdrop, higher oil prices and prospects of larger
portfolio inflows after the election are probably driving this positive
market performance.”

 

 

 

South Africa's rand gains on trade deal hopes; stocks weak

JOHANNESBURG (Reuters) - South Africa’s rand rose on Monday, holding onto
its post-budget gains, after U.S. President Donald Trump extended a deadline
for China and the United States to reach a trade agreement.

 

Stocks weakened as rand-hedges weighed on the market.

 

At 1510 GMT, the rand was 1.32 percent stronger at 13.8150 per dollar after
closing at 14.0000 on Friday in New York.

 

Trump’s announcement was the clearest sign yet that China and the United
States were near an agreement to end a trade war that has slowed global
growth and disrupted markets.[nL1N20J04S]

 

After an initial slip following last Wednesday’s budget, where Finance
Minister Tito Mboweni announced a 69 billion-rand ($5 billion) bailout for
ailing utility Eskom and a slower growth forecast, the rand regained ground
as traders saw some positives in the speech.

 

Moody’s, the last of the major credit agencies to rate South Africa as
investment grade, said the budget showed South Africa’s limited options in a
challenging economy, reflecting sympathy for a situation Mboweni inherited
when he took over the Treasury in October.[nL5N20F6QR]

 

Bonds also gained, with the yield on the benchmark 10-year government issue
down 3 basis points to 8.695 percent.

 

On the stock market, the benchmark Top-40 index and the All-Share index
slipped as investors sold shares in local companies that earn most of their
revenues in hard currency, known as rand hedge shares, as the rand
strengthened.

 

The All-Share dropped 0.2 percent to 55,878 points; the Top-40 fell 0.2
percent as well, to 49,638 points.

 

Anglo American fell 1.53 percent to 367.97 rand and Glencore was down 1.47
percent to 55.80 rand. MediClinic weakened 0.81 percent to 58.52 rand.

 

 

South Africa's Sasol half-year profit rises

JOHANNESBURG (Reuters) - South African petrochemicals group Sasol on Monday
reported an 18 percent jump in half-year profit on the back of higher crude
oil prices, a weaker rand to the U.S. dollar and higher margins in its
speciality chemicals unit.

 

Core headline earnings per share (HEPS) rose to 21.45 rand ($1.54) for the
six months ended Dec. 31, 2018 from 18.22 rand in the same period a year
earlier.

 

HEPS is the primary profit gauge in South Africa and strips out certain
one-off items.

 

($1 = 13.9557 rand)

 

 

 

KenGen gets contract with Ethiopian Electric Power for geothermal drilling

(Reuters) - Kenya’s KenGen on Monday said it secured a multi-million
shillings contract to provide geothermal drilling services to state-run
Ethiopian Electric Power.

 

The power producer’s contract with East Africa’s largest power producing
company is being funded by the World Bank through a loan to the Ethopian
government for 7.6 billion shillings ($76.8 million), KenGen said in a
statement.

 

 

 

Zambia, Zimbabwe cut Kariba Dam power generation

LUSAKA (Reuters) - Zambia and Zimbabwe reduced power generation to around
half capacity at their power stations at the Kariba Dam as water levels in
the reservoir fell, Zambia’s state-owned ZESCO Ltd said on Monday.

 

ZESCO spokesman Henry Kapata said power generation on both the Zambian and
Zimbabwean sides had been restricted to 500 megawatts (MW) each from total
capacities of around 1,000 MW.

 

“The Zambezi River Authority gave us an annual allocation of 19 billion
cubic metres of water and this means we can only generate up to 500
megawatts each,” Kapata said, referring to the jointly owned firm which
manages the Zambezi River.

 

A joint technical committee bulletin issued on Feb 19 by companies including
power utilities in Zambia, Zimbabwe and Mozambique indicated that water
levels in the Kariba Dam had dropped to 43 percent of its capacity.

 

“As the inflows into the Kariba and Kafue Gorge upper reservoirs are lower
than the outflows, the reservoirs’ storage is decreasing,” the bulletin
said.

 

 

Steinmetz's BSGR to walk away from Guinea's Simandou -statement

JOHANNESBURG (Reuters) - Israeli billionaire Beny Steinmetz’s BSG Resources
will walk away from Guinea’s massive Simandou iron ore project as part of a
settlement ending a long-running dispute with the Guinean government, the
company said in a statement on Monday.

 

Under the deal, the two parties will drop outstanding procedures related to
the dispute, and Steinmetz will seek a new group of investors to develop the
smaller Zogota iron ore deposit, the statement said.

 

 

Tunisia central bank says dinar hard to defend as reserves fall

TUNIS (Reuters) - Tunisia’s central bank governor said on Monday the dinar
currency could not be easily supported as international reserves go below
three months of imports.

 

Tunisia’s economy has been in crisis since the toppling of autocrat Zine
al-Abidine Ben Ali in 2011, with unemployment and inflation shooting up. It
has struggled with tough economic reforms to reduce public spending.

 

Central bank chief Marouan Abassi said foreign currency reserves’ cover had
fallen to 84 days of imports due to lower phosphate production and a large
energy sector deficit.

 

The dinar hit a record low earlier this month against the euro as a
worsening trade deficit and lower overseas remittances eroded reserves. It
was at 3.53 against the euro and 3.11 against the dollar on Monday,
according to traders.

 

The dinar fell about 13 percent versus the euro and 8.6 against the dollar
in 2018. Tunisia’s trade deficit widened in December 2018 to a record 19
billion dinars.

 

“Today, we have a huge energy deficit of up to five billion dinars and
production fall in vital sectors such as phosphates, in addition to a
decline in tourism revenues by half compared to 2010, for example,” Abassi
told parliament.

 

“What do we have to do? If we defend the dinar, the stock of the currency
will fall further”, he added.

 

Production of phosphates, a major foreign revenue source, declined in 2018
to about 3 million tons compared to 8.2 million in 2010.

 

Though Tunisia has been praised as a rare success among nations where “Arab
Spring” revolts took place in 2011, successive governments have failed to
trim deficits and create growth.

 

Tunisia forecasts the budget deficit to fall to 3.9 percent of gross
domestic product in 2019, from about 5 percent last year. It aims to raise
GDP growth to about 3.1 percent this year from 2.5 percent last year.

 

 

China's Xiaomi unveils $680 smartphone, sees growth in Africa

BARCELONA (Reuters) - China’s Xiaomi has launched its contribution to a new
wave of smartphones that will be able to take advantage of faster 5G mobile
networks at a lower price than analysts expect from rivals such as Samsung.

 

The world’s fourth-largest smartphone maker unveiled the handset on Sunday,
trumpeting prices starting from 599 euros ($680) when it hits the market in
May, prompting gasps in the hall at the mobile industry’s biggest global
event in Barcelona.

 

Market leader Samsung announced an innovative folding 5G phone last week
with a $1,980 price tag, which Huawei matched with its own foldable
5G-enabled device priced at an eye-watering $2,600.

 

Samsung did not give a price for a non-folding 5G device it added to its
Galaxy range.

 

“We announced a very, very aggressive price,” Xiaomi Senior Vice President
Xiang Wang told Reuters. “We want to drive 5G to normal consumers, so more
and more people can afford to buy it.”

 

The next-generation wireless technology promises to ratchet up internet
speed and support an “Internet of Things” in which embedded chips enable the
creation of smart networks of vehicles, household devices and more.

 

While some scepticism remains about how far and how fast 5G can take hold,
it is the latest high-end add-on that manufacturers attending the Mobile
World Congress are using to stoke excitement about new gadgets amid slowing
sales.

 

“5G is here, not in 2020, not late 2020; it’s here right now in 2019,”
Cristiano Amon, president of chipmaker Qualcomm, which supplies Xiaomi, said
during a launch event.

 

Amon expected the transition to 5G to be faster than that from so-called
third-generation networks to the fourth, which has already quickened
download times and enabled advances such as video streaming to mobile
phones.

 

Xiaomi initially targeted Asian markets, notably India, where it toppled
Samsung as the No.1 smartphone seller last year.

 

Since 2017, it has launched into Spain, France and Italy with devices
enabled for 4G. Now its is turning its attention to growth potential in
Africa, Wang said.

 

“We see the African countries building, accelerating their migration from 3G
to 4G,” he said.

 

“We only have 4G products, so I think it’s the right time for us to learn
that market, to serve the customers first and learn more so we can have more
products for Africa.”

 

($1 = 0.8818 euros)

 

 

Tesla's Elon Musk may be in contempt over tweet

The US financial regulator has asked a New York judge to hold Tesla boss
Elon Musk in contempt for violating a settlement over social media comments.

 

The move by the Securities and Exchange Commission (SEC) comes after he
tweeted about the car firm's production.

 

Last year, Mr Musk agreed that he would not make statements about Tesla's
financial performance without prior agreement with the company.

 

That settlement followed his tweets in August about taking Tesla private.

 

There was no immediate comment from either Tesla or Mr Musk on the SEC's
move.

 

Tesla's share price fell 5% in after-hours trading on Wall Street.

 

Last week Mr Musk posted an aerial picture of thousands of new Tesla
vehicles, and said that he expected the firm to make 500,000 cars in 2019.

 

In court papers filed in New York on Monday, the SEC said Musk did not get
approval before publishing the tweet which was inaccurate and in breach of
Mr Musk's agreement. The SEC noted that the tweet was disseminated to more
than 24 million people.

 

"Musk has thus violated the Court's Final Judgment by engaging in the very
conduct that the preapproval provision of the Final Judgment was designed to
prevent," the SEC wrote in its motion filed on Monday in federal court in
Manhattan.

 

Tesla has endured a difficult period, following comments Mr Musk made on
social media in August suggesting he had "funding secured" for a deal to
take Tesla private.

 

Its shares soared in response to those comments but weeks later Mr Musk
backed away from the plan, after feedback from shareholders.

 

US authorities ordered Tesla and Mr Musk to pay a $20m (£15.2m) fine. Mr
Musk was also obliged to relinquish his role as chairman for three years.

 

But he has remained defiant, while investors have also called for stronger
oversight after his erratic behaviour attracted attention.

 

In media interviews he said he often slept on a sofa in the Tesla office and
in an online video he briefly smoked marijuana.

 

Mr Musk said in an interview with news channel CBS that he has "no respect"
for the SEC, but that he had chosen to pay the settlement fine because he
believed in the justice system.--BBC

 

 

Eurostar owner allays Brexit chaos fears

The biggest shareholder in Eurostar has sought to allay fears that Brexit
might hit - or even halt - the cross-Channel train service.

 

Guillaume Pepy, head of France's SNCF railway company, told French media
that it was working to ensure smooth travel "whatever the [Brexit]
scenario".

 

He said "details" still needed to be worked out, but the service's
"fundamentals" would not be affected.

 

Reports last week said the UK government feared passenger chaos.

 

The Financial Times said a confidential assessment drawn up by the
government warned of long queues at London's St Pancras International
station, the main Eurostar terminal in the UK, if there was a no-deal
Brexit.

 

Mr Pepy told reporters: "We are well aware that the devil will be in the
details - so we are working on the details.

 

"And then, in concrete terms, we shall have to see how things are organised
at Gare du Nord (in Paris) and St Pancras regarding identity and customs
checks."

 

He added if such controls brought delays then train officials would need to
assess "if we hold back the train a few minutes or send people on their way
in the following train".

 

According to the FT, the government report feared there could be a 40-60%
reduction in Eurostar services if there was no deal when Britain leaves the
EU on 29 March.

 

Last October, the government's regular contingency papers for a no-deal
Brexit warned that Eurostar services could be suspended without specific
agreements with France and Belgium.

 

SNCF has a 55% stake in Eurostar with Quebec's pension and insurance plans
institutional investor CDPQ holding a further 30%.

 

UK investment management firm Hermes Infrastructure has a 10% with 5% held
by Belgian railways.--BBC

 

 

UK to keep trade penalties post-Brexit

Chinese car tyres, steel products and ceramic goods will continue to be
penalised after Brexit, under trade remedy measures announced by the
government.

 

The European Union applies tariffs to imports that have been judged to be
traded unfairly.

 

The UK government said that 43 such remedies to trading will be maintained.

 

They will be continued if the UK leaves the EU without an agreement or after
the transition period.

 

Chinese products in particular have been penalised for being dumped on
international markets at low prices.

 

The International Trade Secretary Liam Fox also announced that 66 measures
designed to protect European Union producers will not apply after Brexit.

 

That includes tariffs on Thai sweetcorn, mandarins from China and solar
glass from China, used to make solar panels.

 

"The decision on whether to maintain measures was based on whether those
measures mattered to the UK. We are scrapping measures that don't
significantly benefit British businesses and this will see savings for
people throughout the country," Mr Fox said in a statement.

 

He added that there would be a review of the tariffs to see if they needed
changing.

 

"What's crucial is what's missing from the Government's announcement today,"
said Laura Cohen, chief executive of the British Ceramic Confederation.

 

"We still do not know what they are going to do with those underlying, most
favoured nation tariffs, onto which trade remedies are added.

 

"If Government drops these to zero in a no-deal Brexit, then ceramic tiles
and tableware, and many thousands of other goods manufactured in this
country will be in jeopardy, because a flood of imports will cause untold
damage to our domestic markets," she said.

 

'Mammoth task'

The body representing steel makers welcomed the trade remedies announced
today, but warned that the UK is not ready to manage trade issues.

 

"Even a highly experienced authority would struggle with the sheer volume
and complexity of reviewing all the transitioned measures, implementation of
the UK's new steel safeguards as well as taking on a brand new
investigations into dumping and subsidies," said the Director General of UK
Steel Gareth Stace.

 

"UK steel producers are at risk of exposure to unfair trading practises
whilst the fledgling Trade Remedies Authority wrestles with this mammoth
task and plays catch-up with its EU counterpart," he said.

 

In 2017, Mr Fox said the UK would be able to replicate 40 EU free trade
deals by Brexit day.

 

But so far the department has only been able to finalise continuity
agreements with seven of the 69 countries and regions with which the EU has
trade deals.

 

These include Switzerland, Chile, the Faroe Islands, Eastern and Southern
Africa, Israel and the Palestinian Authority.

 

Last week it emerged that a deal with Japan would not be read in time for a
no-deal Brexit.

 

It was one of the most important EU trade deals the UK hoped to replicate
ahead of the 29 March withdrawal date.

 

The trade department also said it would not be able to roll over the EU's
customs union deal with Turkey on time.

 

WTO options

If the UK left the European Union on 29 March without a deal, it would
automatically fall back on World Trade Organization (WTO) rules.

 

The average EU tariff is low, about 2.8% for non-agricultural products, but
in some sectors tariffs can be quite high.

 

The UK could choose to lower tariffs or waive them altogether, in an attempt
to stimulate free trade. That could mean some cheaper products coming into
the country for consumers but it could also risk driving some UK producers
out of business.--BBC

 

 

 

Etsy shares surge as revenue hits $200m

Shares in online crafts marketplace Etsy jumped by 6% in after-hours
trading, after the firm reported strong growth during the festive season.

 

The retailer's revenues hit about $200m (£153m) in the last three months of
2018, up 47% year-on-year.

 

Buyers using the platform were up 18%, while active sellers increased by 9%.

 

The gains cap Etsy's strongest year of revenue growth since 2015, when it
debuted on the stock exchange, and come despite competition from Amazon.

 

Etsy chief executive Josh Silverman said executives believe the firm's 2018
expansion outpaced the overall e-commerce market. "We are gaining share," he
said.

 

The numbers

Etsy's future once looked like it might be threatened by bigger players,
especially Amazon.

 

In 2017, Etsy replaced its chief executive and announced several rounds of
job cuts, as losses mounted and Amazon launched a division focused on
handmade gifts.

 

However, the firm's share price has almost tripled in the last 12 months, as
investors brighten on the firm's prospects.

 

Etsy said about $4b worth of merchandise was sold on Etsy in 2018, up more
than 20% from the prior year.

 

Growth was especially strong internationally, with sales in the UK hitting
record levels during the fourth quarter.

 

The increased activity generated about $600m in revenue for Etsy in 2018, up
more than 36%-year-on-year.

 

However the gains came at a cost.

 

Full-year profits slipped 5% to about $77.5m, as the firm spent more on
marketing and product development, improving its search function and
offering free shipping on more products.

 

Etsy said its expected growth to continue in 2019, with revenue gains of 29%
to 32%. It expects merchandise sales to rise 17% to 20%.

 

The e-commerce site's share price has increased over the last 12 months from
about $21 to about $59 as of Monday's market close, before the firm's
results.--BBC

 

 

 

No-deal Brexit risks 'full-blown economic crisis'

The risk of a no-deal Brexit is turning into a "full-blown economic crisis",
the aerospace trade body has warned.

 

ADS Group said it was now able to track "the very real economic damage being
caused" by the continuing uncertainty over the UK's exit from the EU.

 

Its warning comes as insurance trade body, the ABI, said a no-deal Brexit
"would be a be an unforgivable act of economic and social self-harm".

 

The UK is due to leave the EU on 29 March, but no deal is yet in place.

 

Prime Minister Theresa May is facing growing pressure to delay Brexit if no
deal is agreed by then.

 

ADS, the aerospace and defence trade group, represents some of the largest
companies operating in the UK, including Airbus, Boeing and BAE Systems.

 

Chief executive Paul Everitt said its members needed a "firm transition
period and negotiations on the UK's future relationship with the European
Union commenced at the earliest opportunity".

 

His comments come amid growing anger among many business groups over the
continuing uncertainty.

 

What effect has Brexit had on the UK economy?

UK economy ‘stalls’ over Brexit fears

Huw Evans, director general of the Association of British Insurers, is
expected to suggest at a dinner on Monday evening that "as a last resort"
Brexit should be subject to a short delay if no deal is the only
alternative.

 

Mr Evans will say that any future arrangement with the EU that required the
UK to comply with rules over which it had no say could be "weaponised by
those in the EU that want to
 damage the UK".

 

On Sunday, Mrs May announced that MPs will be able to have a fresh vote on
the Brexit deal by 12 March, prompting expressions of dismay by several
business groups.

 

CBI deputy director general Josh Hardie described it as "the latest signal
to businesses that no-deal is hurtling closer".

 

"It must be averted. Every day without a deal means less investment and
fewer jobs created," he said.

 

British Chambers of Commerce director general Dr Adam Marshall said:
"Delaying the vote until just two weeks before the UK's planned departure
from the EU raises serious concerns about the timeline of the parliamentary
process, and whether there is sufficient window to reach an agreement and
pass the necessary legislation to avoid a no-deal exit."

 

And the Institute of Directors' interim director general, Edwin Morgan,
said: "There is too much at stake to run down the clock and risk an
accidental no-deal. We sincerely hope this is the last and final date
change."

 

He added: "Businesses have lost all faith in the political process and as
those first in the firing line of no-deal, they deserve to know more."--BBC

 

 

 

Laura Ashley faces possible takeover bid

Investment firm Flacks Group says it is in the early stages of evaluating a
bid for struggling retailer Laura Ashley.

 

The Miami-based group said in a statement that it was in the "very
preliminary" stages of considering a £20m bid for Laura Ashley.

 

The statement comes despite the current owner's insistence it has no plans
to sell the brand.

 

Laura Ashley's shares fell 1.2% to 3.2p as the offer values the company at
2.75p a share.

 

Earlier on Monday, Laura Ashley chairman Andrew Khoo said: "If and when an
approach is made, the Board will discharge its duties as always and assess
it on its relative merits."

 

However, he went on to give a firm rebuff to any potential investors: "I
would however like to state for the record that as major shareholders of
Laura Ashley, we have no intention of divesting our shareholding.

 

"Whilst I understand why potential parties would think we are significantly
undervalued, I have complete confidence that we will be able to grow
profitably and in a sustainable manner so as to create long-term value for
our shareholders.

 

"We remain just as committed and passionate about this well-loved brand as
when we first decided to invest in Laura Ashley over 20 years ago."

 

Last week, Laura Ashley issued a profit warning, telling investors that its
full-year results were set to be lower than forecast amid "difficult"
trading conditions.

 

The fashion and home furnishings retailer also said it made zero profit for
the last six months of 2018 as sales fell 4.2%.

 

Laura Ashley, which is controlled by Malayan United Industries (MUI), has
closed 40 UK stores since 2015. The group currently operates 156 stores in
the UK

 

Originally based in Wales, Laura Ashley grew from a small factory in Carno
to become one of the world's leading clothing brands in the 1970s and
1980s.--BBC

 

 

 

Karren Brady quits Philip Green's empire amid controversy

Baroness Karren Brady has resigned from Sir Philip Green's retail empire,
just weeks after vowing to stay in her post despite a harassment scandal.

 

Taveta, the holding company for Sir Philip's Arcadia group, said she had
stepped down as its non-executive chairman, but gave no reason.

 

She had been chairman since July 2017.

 

It comes after allegations of sexual harassment and racial abuse of staff by
Sir Philip were reported earlier this month, accusations he strongly denies.

 

Lady Brady had said she felt "a real sense of duty" to staff at the retail
empire, including her own daughter, Sophia Peschisolido, who has been a
social media content assistant at Topshop since 2016.

 

Karren Brady: 'The First Lady of Football'

Sir Philip Green drops Telegraph injunction

>From 'king of the High Street' to 'unacceptable face of capitalism'

She was made a life peer in 2014 and sits on the Conservative benches in the
House of Lords.

 

Lady Brady also runs a business leadership firm through the website
strongfemaleleadership.com.

 

The firm said Sharon Brown had also resigned as non-executive director of
Taveta.

 

"Taveta thanks them for their contribution and wishes them well for the
future," the company said.

 

Baroness Brady's seat at the head of the Taveta board has been an
uncomfortable one ever since she became chair in 2017.

 

Putting one of Britain's most high-profile businesswomen at the head of a
board on which she had served since 2010 was seen a shrewd appointment in
the wake of the collapse of BHS.

 

She has described herself as being "tough" and has regularly spoken out
against men who abuse their power within organisations, subjecting women to
inappropriate behaviour.

 

The recent revelations of substantial payments of hush money to keep
allegations against Sir Philip of sexual and racial harassment quiet
therefore made her position very awkward indeed.

 

Having weathered the media storm around Sir Philip Green's conduct and the
use of non-disclosure agreements for several months, questions will
naturally arise as to why they are both stepping down now.

 

Sir Philip Green has always insisted that there was nothing in his conduct
that was unlawful.

 

With both business associates and board members jumping ship, it seems that
while not unlawful, it has made him deeply unpopular.

 

Earlier this month, Sir Philip dropped legal action against the Daily
Telegraph newspaper, which had been prevented from publishing accounts of
his alleged misconduct towards five employees.

 

The paper subsequently reported that he paid a female employee more than £1m
to keep quiet after she accused him of kissing and groping her.

 

After the allegations became public, Lady Brady came under pressure to step
down from her post at Taveta.

 

But she responded by saying that she would stay in her post because she felt
"a real sense of duty" to the people working at Taveta.

 

She said at the time in a statement issued through her public relations
team: "I want to be 100% clear - I have always been an outspoken defender of
women's rights in the workplace and always will be.

 

"As chairman of Taveta, I am extremely proud of our people, our customers
and our brands. My primary concern are the 20,000 people who work there, of
which over 85% are women."

 

Karren Brady's career: Advertising, Football and The Lords

 

*         1987 joins Saatchi & Saatchi

*         1993 appointed managing director of Birmingham City

*         2009 made Alan Sugar's assistant on The Apprentice

*         2010 appointed Vice Chairman of West Ham United

*         2014 joins House of Lords--BBC

 

 

 

Investment scam targets Instagram users

Victims aged in their 20s have each lost an average of £8,900 after falling
for investment scams that appear on image-sharing platform Instagram.

 

Action Fraud, a UK police-led awareness centre, said there had been a surge
in activity in recent months by fraudsters posting about get-rich-quick
schemes.

 

Victims are promised high returns within 24 hours, but the fraudsters demand
fees and then disappear.

 

Some 356 reports of losses have been made in the past five months.

 

Those tricked lost a collective total of more than £3m, but more is expected
to have been stolen as some victims may not have reported their losses.

 

Reports of frauds on the elderly are 'tip of iceberg'

Instagram scam preys on bank followers

The scam sees schemes advertised via the Instagram app. Those targeted are
encouraged to transfer £600 and are promised almost instantaneous profits.
Once the money is paid, they are sent images supposedly of profits building
up in their accounts.

 

The fraudsters tell their victims to "invest" more, and that the money can
be released for a fee, which is why losses can build to thousands of pounds.

 

However, they then they close the Instagram account, stop all contact, and
disappear with the money.

 

Common scam

Investment fraudsters often use professional-looking images and may promise
free research reports, special discounts and "secret" stock tips.

 

ZeroFox, a security company specialising in social media, previously told
the BBC that it found more than two million public Instagram posts that push
these types of scam, known as money-flipping.

 

Inspector Paul Carroll, of Action Fraud, said: "Opportunistic fraudsters are
taking advantage of unsuspecting victims who are going about their
day-to-day lives on social media."

 

He urged social media users never to send money to strangers only
encountered online, to check financial matters with family members, to only
deal with financial firms authorised by the regulator - the Financial
Conduct Authority - and to report any cases of fraud.--BBC

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


ART

AGM

202 Seke Road, Graniteside

27 Feb 2019 2:30pm

 


Cafca

AGM

Boardroom, Head Office, 54 Lytton Road, Workington

28 Feb 2019 12pm

 


Powerspeed

AGM

Boardroom, Gate 1, Powerspeed Complex, Graniteside

28 Feb 2019 - 11am

 


Willdale

AGM

Boardroom, Willdale Adminstration Block, Teneriffe Factory, 19.5km peg
Lomagundi Road, Mt Hampden

07 March 2019 11am

 


Mash

AGM

Boardroom, ZB Life Towers, 77 Jason Moyo Avenue

18 March 2019 12pm

 


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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<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

Invest Wisely!

Bulls n Bears 

 

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