Major International Business Headlines Brief::: 28 February 2019

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Major International Business Headlines Brief::: 28 February 2019

 


 

 


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*  Zimbabwe sold up to $20 million to banks for trade on new forex platform
- sources

*  S.Africa's Liberty sells short-term insurance tech platform to Standard
Bank

*  Africa's top pay-TV group MultiChoice jumps 15 percent on JSE debut

*  Nigeria bonds, stocks fall after Buhari wins re-election

*  eSwatini facing "economic crisis" as investment slows, wage bill balloons
-finmin

*  Nigeria one-year debt sees $2 bln demand at auction as election risk
fades -trader

*  South African rand steady on soft dollar after Fed comments

*  Malawi 2018/19 maize output jumps 27 pct

*  Zimbabwe limits dollar sales to foreign payments only

*  Shoprite cautious on improving outlook after worst first half in more
than a decade

*  Airlines reroute to avoid Pakistan

*  Booker Prize finds new funder in billionaire Sir Michael Moritz

*  'Everything awesome' at Lego as it grows again

*  Trump urged to stay tough over China trade deal

*  TikTok: Record fine for video sharing app over children's data

*  BBC and ITV set to launch Netflix rival

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

Zimbabwe sold up to $20 million to banks for trade on new forex platform -
sources

HARARE (Reuters) - Zimbabwe’s central bank has sold up to $20 million to
banks for trading on a newly-launched forex interbank market, but the money
could be exhausted by the end of next week due to high demand, banking
sources said on Wednesday.

 

Zimbabweans had hoped the end of Robert Mugabe’s rule in 2017 after an army
coup would change their economic fortunes, but have instead watched as a
severe dollar crunch hobbles businesses and brings shortages of medicines,
fuel and food.

 

Many anticipated walking into banks to buy U.S. dollars after the Reserve
Bank of Zimbabwe (RBZ) scrapped a discredited 1:1 dollar peg for surrogate
bond notes and electronic dollars last week, merging them into a lower-value
transitional currency called the RTGS dollar.

 

But banks were under orders to restrict transactions to companies and
individuals with foreign payments to make that would stimulate economic
growth, according to a central bank directive seen by Reuters.

 

That, and the fact the exchange rate has remained stuck at around 2.5 RTGS
to the dollar since the currency started trading on Friday, brought
criticism from bankers and economists that it was not the monetary reform
needed.

 

The central bank sold what it called “seed” U.S. dollars to a handful of
banks on Friday, but RBZ governor John Mangudya and Finance Minister Mthuli
Ncube have refused to say the amount.

 

“They sold between $15 and $20 million to the banks,” said one executive
whose bank bought dollars from the RBZ.

 

“But that will be exhausted by the end of next week, and that is when
reality will kick in.”

 

“WE WILL RUN OUT SOON”

Another executive at one of Zimbabwe’s three biggest banks confirmed the
amount and added: “The problem is that there is huge demand, but no one is
selling, so we will run out pretty soon.”

 

Dealers at banks said the reason sellers were not coming forward was because
they wanted a higher rate for dollars.

 

On the black market, $1 bought 3.6 RTGS, unchanged from Tuesday. But dealers
said the central bank was giving indications to the market that it did not
want the official rate to move beyond 2.5 for now.

 

“You then ask yourself whether this is really a free float,” a dealer at a
Harare bank said.

 

The central bank says it removed the 1:1 dollar peg to benefit exporters who
previously surrendered a portion of their dollars at the official rate.

 

Exporters, including miners who earn the most dollars for the economy, can
now sell part of their U.S. dollars at the 2.5 rate. But they can only keep
dollars in local foreign currency accounts for 30 days, after which they are
required to sell on the interbank market.

 

This, the central bank hopes, will create a ready pool of dollars for
importers and the government.

 

But some analysts are sceptical, saying exporters should be allowed to keep
all their dollars and only sell when they need to, if Zimbabwe is to attract
foreign investment.

 

“This is not much of a currency reform. They just merged the RTGS
(electronic dollars) and bond notes and devalued the exchange rate, but
everything remains the same,” said Tony Hawkins, professor of business
studies at the University of Zimbabwe.

 

In another sign of the acute dollar shortages, long queues resurfaced at
petrol stations this week where fuel is supplied by government purchases in
the U.S. currency.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 



S.Africa's Liberty sells short-term insurance tech platform to Standard Bank

JOHANNESBURG (Reuters) - South African insurer Liberty Holdings has agreed
to sell its technology platform, which supports its short-term insurance
business, to Standard Bank Group Ltd for 145 million rand ($10.45 million).

 

“The transaction provides Liberty Holdings with the opportunity to reduce
future capital requirements and de-risk its business,” it said in a
statement.

 

The proceeds from the disposal, which includes moveable assets and
intellectual property, will be used to support Liberty’s existing business
and to deliver various initiatives under its turnaround strategy, it added.

 

The company said last year it would slow its expansion and focus on higher
margin products as part of the strategy.

 

Liberty’s short-term products are underwritten by Standard Insurance
Limited, a wholly owned subsidiary of Standard Bank.

 

The short-term insurance technology platform allows customers to
pro-actively manage their short-term risk.

 

Liberty said for the financial period ended Dec.31, the recorded loss
attributable to the business from costs incurred in establishing the
technology platform was 51 million rand ($3.68 million) and the capitalised
expenditure incurred up to Dec. 31, was 94 million rand.

 

($1 = 13.8761 rand)

 

 

 

Africa's top pay-TV group MultiChoice jumps 15 percent on JSE debut

JOHANNESBURG (Reuters) - Shares in Africa’s biggest pay-TV group MultiChoice
leapt around 15 percent on its market debut on Wednesday, launching the
company straight into the top-40 firms on Johannesburg’s bourse.

 

MultiChoice, a spin-off from ecommerce giant Naspers, stood at 110.06 rand
per share at 0957 GMT, just over 15 percent higher than its opening price of
95.5 rand, giving it a market capitalisation of 48 billion rand ($3.47
billion).

 

Naspers hoped listing Multichoise would help narrow a valuation discount
between its market value and that of its one-third stake in Chinese internet
group Tencent, and believed MultiChoice would fare better on its own.

 

Multichoice’s market value was, however, still well below some analysts’
estimates of around $6 billion.

 

Claude van Cuyck, portfolio manager at Denker Capital, which holds Napsers
shares and has kept its stake in the newly-independent MultiChoice, said the
price was likely weighed down by its losses in its business outside South
Africa.

 

“You could understand that given the extent of the losses there at this
point that the market would be and remains fairly sceptical until things
normalise,” he said, adding that there was significant opportunity on the
continent.

 

He added that the unbundling was the right strategy for both Napsers and
MultiChoice, which is now able to use its cash from its lucrative South
African business to invest without being influenced by Naspers broader
strategy.

 

GOING SOLO

For Naspers, van Cuyck said while it was unlikely to make a significant dent
in the Tencent discount it signalled the company was focused on taking the
steps required to do so.

 

Tim Jacobs, CFO of MultiChoice, told Reuters in an interview that the
company was pleased with the level at which its stock opened.

 

“We don’t think that’s a bad share price at the moment. We’re in the top-40,
that’s really positive, and really good for us,” he said.

 

The spin off leaves MultiChoice - whose strong cash flow helped Naspers
evolve into one of world’s biggest players in e-commerce - free to fend for
itself in an increasingly competitive market where Netflix is already
supplying viewers with TV content and Hollywood hits.

 

Naspers did not raise any money from the listing, with the 439 million
shares instead being distributed to current Naspers shareholders on a
one-for-one basis for its listed shares and one for five unlisted A class
shares.

 

Founded 30 years ago, MultiChoice reaches around 14 million households in 50
African countries, offering both paid-TV products and a fledging streaming
service called Showmax.

 

It says it is one of the fastest growing pay-TV service in the world, and
that there are 25 million households across the continent it is yet to
capture.

 

($1 = 13.8359 rand)

 

 

 

Nigeria bonds, stocks fall after Buhari wins re-election

LAGOS (Reuters) - Nigeria’s 10-year bond yield fell to its lowest in six
months on Wednesday as stocks dropped after incumbent Muhammadu Buhari was
reported to have won re-election as leader of Africa’s biggest economy for
another four years.

 

The electoral commission chairman said Buhari took 56 percent of votes
against 41 for his main rival, businessman and former vice president Atiku
Abubakar of the People’s Democratic Party (PDP), to secure victory in the
election held last Saturday.

 

But Atiku rejected the result and vowed to challenge it in court.

 

The benchmark 2028 bond yield dropped to 14.3 percent, its lowest since
August, from 14.5 percent the previous day. It was quoted at 14.75 percent a
day before Saturday’s vote.

 

Yields on government bonds have been falling since December as investors
bought debt. Traders said they had seen some buying from offshore funds on
Wednesday.

 

The country’s dollar-denominated bond traded offshore rose as much as 0.8
cents in the dollar to extend a more than 10 cents rally since the start of
the year.

 

Stocks on the other hand fell to a one-week low in early trades. The stock
index which opened up 0.12 percent turned red to fall 0.18 percent, its
lowest in one-week, on low volumes after mixed trading in the past week due
to the election.

 

Analysts had predicted a stock market rally this year if the elections
passed without violence or other problems. Shares gained on Monday.

 

 

 

eSwatini facing "economic crisis" as investment slows, wage bill balloons
-finmin

MBABANE (Reuters) - eSwatini’s economy probably contracted in 2018 and is
set to continue faltering as the southern African kingdom faces slowing
rates of foreign investment and a fast-growing wage bill, Finance Minister
Neal Rijkenberg said on Wednesday.

 

The tiny landlocked country, formerly known as Swaziland and with a
population of 1.4 million people, is ruled by the increasingly powerful King
Mswati III whose rule has faced growing resistance as state revenue and
employment have slowed.

 

“eSwatini is facing an unprecedented economic crisis. Preliminary estimates
suggest a contraction of 0.4 percent in our GDP for 2018 and the economic
outlook remains subdued,” Rijkenberg said in a budget speech to lawmakers.

 

 

Nigeria one-year debt sees $2 bln demand at auction as election risk fades
-trader

LAGOS (Reuters) - An auction on Wednesday of one-year Nigerian treasury
bills drew 611 billion naira ($2 billion) of demand, more than 10 times the
amount on offer, as election risk fizzled away, one trader at a foreign bank
told Reuters.

 

Bonds rallied on the secondary market on Wednesday after President Muhammadu
Buhari won a second term in charge of Africa’s biggest economy, although the
defeat of his pro-market rival pushed the country’s stock market lower.

 

($1 = 306.35 naira)

 

 

South African rand steady on soft dollar after Fed comments

JOHANNESBURG (Reuters) - South Africa’s rand held steady in early trade on
Wednesday as the dollar hovered near a three-week low after U.S. Federal
Reserve Chairman Jerome Powell reiterated that the central bank would be
patient in raising interest rates.

 

At 0625 GMT, the rand traded at 13.8325 per dollar, not far off its
overnight close of 13.8400.

 

“The rand has, along with emerging markets, held steady on Powell indicating
that due to uneven global growth dynamics, the FOMC would be patient with
respect to interest rate adjustments; more testimony is to follow today,”
Nedbank analysts said in a note.

 

“The rand has thus far failed to breach below the 13.80 level, but has
similarly resisted the top at 14.0000, although a test to the downside
appears likely against the current backdrop.”

 

The rand has traded below the psychologically significant 14.00 per dollar
level for the past few sessions as last Wednesday’s budget lowered market
bets of a credit rating cut by Moody’s after a week of power cuts by utility
Eskom had spooked investors.

 

In fixed income, the yield on the benchmark government bond due in 2026 was
down 4.5 basis points at 8.605 percent in early trade.

 

 

 

Malawi 2018/19 maize output jumps 27 pct

BLANTYRE, Malawi (Reuters) - Malawi’s maize output rose 27 percent to 3.3
million tonnes in the 2018/19 season, helped by abundant rainfall and
government subsidies, its agriculture minister said on Thursday.

 

“Our expectation is that we’ll continue to have good rains between now and
May, which should further improve prospects for food production,” Joseph
Mwanamvekha said.

 

Maize is a staple crop in the southern African nation of 19 million people.

 

Government subsidies to farms helped lift production, Mwanamvekha said.

 

This year’s output is expected to increase by anywhere between 32 percent
and 90 percent, according to initial government crop estimates.

 

 

Zimbabwe limits dollar sales to foreign payments only

HARARE (Reuters) - Zimbabwe’s commercial banks are under orders to restrict
U.S. dollar transactions to companies and individuals with foreign payments
to make, according to a central bank directive that demonstrates the slow
progress of currency reforms.

 

The document, a measure of the foreign exchange controls that remain in
place six days after authorities announced moves to ease chronic cash
shortages, also states such transactions should be aimed at stimulating
economic growth.

 

It was sent to banks on Friday and seen by Reuters on Tuesday.

 

Zimbabwe abandoned 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.

 

It launched the RTGS dollar in a “managed float” at 2.5 per U.S. dollar, but
as of Tuesday, banks had yet to start selling hard currency in cash.

 

Banks were only selling U.S. dollars to firms and individuals with invoices
or receipts for imports deemed a priority, such as fuel and medicines.

 

“All interbank market sales to individuals and corporates shall be
restricted to funding of external obligations,” and banks should submit
dealing reports every two hours, the Reserve Bank of Zimbabwe (RBZ)
directive said.

 

Dealers were encouraged to take steps “to ensure efficient utilisation of
foreign currency that is tilted towards the productive sectors of the
economy,” it added.

 

The state-owned Herald newspaper reported that Botswana had offered to lend
Zimbabwe $600 million to support its diamond industry and private firms.

 

Economists say the RTGS reform shows promise provided the government makes
good on a plan to let the new currency fluctuate.

 

Finance Minister Mthuli Ncube told Reuters in an interview on Monday that,
while the market should determine the RTGS rate, the government wanted to
avoid excessive volatility.

 

However, the current official rate values the RTGS far higher than on a
thriving black market that many ordinary Zimbabweans use to buy and sell
U.S. dollars.

 

‘SEED U.S. DOLLAR CAPITAL’The central bank has sold small amounts of U.S.
dollars to banks at 2.5 RTGS in recent days, and a currency dealer told
Reuters the RBZ had authorised banks to buy and sell U.S. dollars at 2.5
percent either side of that rate.

 

Tellers at two banks in downtown Harare said they could help clients make
payments for overseas purchases at 2.5625 RTGS, the rate that other banks
offered on Monday.

 

However, “the RBZ hasn’t given us any U.S. dollars in cash yet,” a teller at
a CABS bank branch said.

 

The central bank sold what it called “seed foreign currency capital” to
banks, but the sums in question appear to be tiny.

 

A senior RBZ official told The Standard newspaper around $5 million had
changed hands on the interbank market on Friday.

 

Bureaux de change can in theory sell people U.S. dollars in cash, but they
are few and far between and the central bank directive said some would have
to re-apply for operating licences.

 

One exchange bureau at the Road Port bus station in Harare was not selling
U.S. dollars in cash yet but hoped it would start making sales next Monday.

 

Exchange rates on the black market for the bond note - which many people
still use in shops - were at 3.6 to the U.S. dollar, unchanged from Monday,
informal currency traders said.

 

 

 

Shoprite cautious on improving outlook after worst first half in more than a
decade

JOHANNESBURG (Reuters) - Africa’s largest supermarket group, Shoprite
Holdings, said its outlook could improve after its worst first-half
performance in more than a decade, hit by supply problems in South Africa
and a currency devaluation in Angola.

 

“Since January 2019, an improved sales trend is evident,” the group said in
a statement on Tuesday, adding though that its weak trading in July-December
last year meant it was unlikely to achieve growth for the full year ending
in June 2019.

 

The supermarket and furniture retailer also said it aimed to simplify its
share structure and was in talks with Thibault Square Financial Services
Proprietary Limited to buy, redeem or cancel deferred shares held by
Thibault, which owns 32.3 percent of voting rights.

 

South African retailers have struggled to lift earnings at home as high
unemployment and household debt have squeezed consumer income.

 

Shoprite had fared better than many thanks to its focus on budget-conscious
consumers, but it was hit in July-December by deflation in basic food
categories and supply constraints stemming from strikes last May and June at
its largest distribution centre in South Africa and a new IT system.

 

The company also faced rising costs across markets although investors took
the view that the worst may be over and Shoprite shares, which have lost
more than 10 percent since the start of this year, were up 5 percent by 1045
GMT.

 

Total group sales across Shoprite’s more than 2,800 outlets in Africa rose
just 0.2 percent in July-December to 75.8 billion rand ($5.5 billion), while
like-for-like sales declined by 2.7 percent from a year earlier.

 

More than half of the group’s business went live on an IT system, which
covers inventories, orders and store operations, in the six months and that
adversely affected product availability for customers, Shoprite said.

 

Estimated lost store sales resulting from stock issues exceeded 1 billion
rand ($72.15 million) in the period, the retailer said.

 

In Angola, its fourth biggest market, an 85 percent currency devaluation
against the dollar since the beginning of 2018 has depressed revenues.

 

The company had flagged much of the first-half weakness in a trading update
last month, but diluted headline earnings per share for the 26-weeks to Dec.
30 of 398.5 cents, down from 525.6 cents a year earlier, fell short of a
forecast of 419 cents in a poll of analysts by Refinitiv.

 

“Our first half performance is below expectations, but not a reflection of
the fundamental strength of the business,” Chief Executive Pieter
Engelbrecht said in a statement.

 

Cost increases in rentals, electricity, security, transport and additional
labour costs, also taking into account inflation in Angola, hit the
company’s bottom line, with trading profit down 19 percent to 3.3 billion
rand.

 

Outside South Africa, the group’s Rest of Africa business reported a trading
loss of 61.8 million rand, versus a trading profit of 552.7 million rand a
year earlier, mainly due to the weak trading in Angola.

 

In a separate statement, the retailer said its talks with Thibault Square
Financial Services would simplify its share structure and voting rights.

 

Shoprite’s capital structure currently consists of two share classes -
Shoprite Holdings ordinary shares and Shoprite Holdings deferred shares -
which carry about 32.3 percent of the voting rights of Shoprite, it said.

 

“The proposed transaction will simplify the company’s voting share structure
and align the company with international best corporate governance
practice,” it said.

 

Furthermore, the deal will ensure that all remaining shares in the company
have equal economic and voting rights, it added.

 

Thibault is an investment vehicle of Christo Wiese, who is Shoprite’s
majority shareholder.

 

($1 = 13.8597 rand)

 

 

 

Airlines reroute to avoid Pakistan

Airlines operating flights from East Asia to destinations in Europe are
having to reroute their planes away from Pakistan and northern India.

 

The airspace is closed because of escalating tension between the two
countries, following the shooting down of two Indian military jets.

 

Flights via Pakistan have been cancelled and other flights rerouted.

 

Thai Airways has taken the more drastic step of suspending all its flights
destined for Europe.

 

With flight space south of Pakistan becoming crowded, the Bangkok-based
airline has not been able to establish alternative routes for its flights.

 

"By closing the airspace, every flight from Thailand to Europe has been
affected. For flights that are going to depart this evening, we will call an
urgent meeting to consider the impact of such events," said Thai Airways
president Sumeth Damrongchaitham.

 

Singapore Airlines and British Airways are among the operators which have
had to reroute flights. Singapore Airlines said longer flight routes would
make refuelling necessary.

 

Alex Seftel, who works as a journalist, was en route from Bangkok to London
on Wednesday on a flight with Taiwanese operator Eva Air. The flight was
turned back over Calcutta in northern India.

 

"We were on the flight, a couple of hours in, and I noticed on the flight
route map that it was going in the opposite direction," he said.

 

"There was a lot of circling around and we had very little information until
we got into the airport."

 

Back in Bangkok, passengers waited several hours for an explanation before
being transferred to a hotel for the night, with a new flight provisionally
scheduled for early Thursday.

 

Some international flights have been rerouted through Mumbai on India's
western coast.

 

Mark Martin, founder and chief executive at Martin Consulting India, said
about 800 flights a day used the India-Pakistan air corridor, making it
"very critical".

 

"You can't overfly China, so you have to overfly Pakistan and India and go
to South East Asia and Australia. Most of the traffic destined for Bangkok
and Singapore will have to fly over Iran and then possibly take a detour,"
he said.

 

The recent flare-up between Indian and Pakistan over the disputed region of
Kashmir began when a suicide car bomb killed 40 Indian paramilitary police
on 14 February. India retaliated with an airstrike on what it said was a
militant training base on Tuesday.

 

Indian domestic airlines, including IndiGo, Go Air, Jet Airways and Vistara,
cancelled services in northern India because of airport closures, although
Indian airports later resumed operations.--BBC

 

 

 

 

Booker Prize finds new funder in billionaire Sir Michael Moritz

The Booker Prize will be funded by venture capitalist Sir Michael Moritz for
the next five years after the Man Group, the previous sponsor, withdrew.

 

The prestigious literary award will be paid for by Crankstart, the charity
run by Sir Michael and wife Harriet Heyman.

 

Welsh-born Sir Michael, who is based in San Francisco, is worth $3.4bn
(£2.5bn), according to Forbes magazine.

 

But the prize will not bear his name - it will be known as The Booker Prize
after 18 years as the Man Booker Prize.

 

Last year's £50,000 prize was won by Belfast writer Anna Burns for Milkman.

 

Sir Michael will also support The International Booker Prize.

 

He began his career as a journalist for Time magazine and wrote the first
biography of Steve Jobs and Apple in 1984.

 

He went on to join Silicon Valley venture capital firm Sequoia Capital,
investing in companies including Google, LinkedIn and PayPal.

 

Harriet Heyman is a former writer for Life and The New York Times, and
published a novel in 1989.

 

Mr Moritz said: "Neither of us can imagine a day where we don't spend time
reading a book. The Booker Prizes are ways of spreading the word about the
insights, discoveries, pleasures and joy that spring from great fiction.

 

"Just like The Booker, I was born in Britain and before coming to America
was reared on English literature. Harriet and I feel fortunate to be able to
support prizes that together celebrate the best fiction in the world."

 

The couple founded Crankstart in 2000 to support and organise scholarship
funds for university students from low-income families.

 

The corporate sponsorship market is notoriously difficult for fundraisers
working in the arts sector. Brands aren't exactly queuing up to pour cash
into exhibitions, fancy extensions, and annual prizes.

 

Those that do often don't hang around for long, and the more loyal can
sometimes lead to negative publicity (such as BP) or strained relations.

 

With this in mind, the Booker Prize will be very pleased to have found a
donor willing to make a major philanthropic gift without demanding his name
be attached to the prize, nor - one imagines - instructing his marketing
team to milk the relationship for all that it is worth.

 

Arts organisations across the country will be looking on enviously, and, I
suspect, forming a queue to invite Sir Michael to lunch.--BBC

 

 

 

'Everything awesome' at Lego as it grows again

Just like the Lego film, everything appears to be "awesome" at the plastic
brick maker as it returned to growth again last year.

 

Profits increased by 4% to 10.8bn Danish kroner (£1.2bn) and sales were up
4% to 36.4bn Danish kroner.

 

That was a rebound from 2017, when Lego reported its first fall in sales and
profits for 13 years. It blamed too much stock in stores and warehouses.

 

Star Wars, Harry Potter, Ninjago and Jurassic World were its best sellers.

 

"We set out with one aim in 2018, to stabilise the business," said chief
executive Niels Christiansen.

 

"Our underlying mission - what the family [which owns the business] wants -
is to get Lego out to as many kids as possible," he said.

 

Its growth in market share in all major markets comes at time when toy
retailers have been struggling, illustrated by the collapse of Toys R US.
This reduces outlets for sales of Lego, which is the world's biggest
toymaker when measured by sales.

 

Mr Christiansen, chief executive of the Danish brick-maker for 18 months,
said he would not be seeking "supra-natural" growth rates of the past.

 

Lego intends to open 80 new stores in China this year, where a flagship
store opened in Beijing earlier this month

The company is still owned by the family of Kirk Kristiansen, who founded
Lego in 1932. It takes its name from an abbreviation of the two Danish words
"leg godt", meaning "play well".

 

It had achieved double-digit growth for five years until 2017, when the
company said it needed a "reset" and cut 1,400 jobs worldwide.

 

Sales in 2017 had been hit because it had "too much" stock in warehouses and
shops.

 

Lego admits it made too many bricks

Children 'need to play more to gain work skills'

Mr Christiansen said Lego was combining physical and digital play. "Kids can
jump between playing physically and digitally," he told the BBC.

 

The company is expanding in China, adding 80 stores this year to the
existing 60.

 

A new flagship store was opened in Beijing earlier this month and China,
with 270 million children, was an ideal place to expand, he said.

 

"A lot of the focus in China is education," Mr Christiansen said, and
families willing to spend on toys like Lego which "build skills like
collaboration".

 

In 2018, sales in the US and Western Europe grew in low-single digits, while
in China they showed double-digit growth.

 

Mr Christiansen said there was still scope for growth in developed markets,
as there were "lots of kids who haven't played with Lego".

 

The company has pledged to use sustainable materials in its products and
packaging by 2030 and Mr Christiansen said the company's issue was not about
plastic disposal.

 

"No one throws their bricks in the ocean," he said.

 

The bricks - it sells 75 billion annually in over 140 countries - and kits
are manufactured in five countries - Mexico, China, the Czech Republic,
Hungary and Denmark.

 

Mr Christiansen said the company was "taking some precautions" against the
impact on its UK business from Brexit, but declined to elaborate.--BBC

 

 

 

Trump urged to stay tough over China trade deal

US Trade Representative Robert Lighthizer told Congress he was pursuing a
trade deal that would protect US firms' intellectual property

Congress has warned the Trump administration that any trade deal with China
should secure substantive policy changes.

 

The statements come as trade negotiations enter a critical period.

 

US President Donald Trump recently said he may meet Chinese President Xi
Jinping to announce a deal next month.

 

There is growing concern in Congress that he will fail to resolve underlying
disagreements over intellectual property and unfair trading practices.

 

At a House Ways and Means Committee hearing on Tuesday, both Republican and
Democrat lawmakers urged the Trump administration's top negotiator Robert
Lighthizer to continue to take a tough approach.

 

"This administration has chosen to take a path of high-risk confrontation,"
said Rep Richard Neal, a Democrat who represents Massachusetts.

 

"It must hold out for a good deal."

 

Mounting tariffs

Mr Trump initiated the trade war in 2017 citing unfair trading practices,
including accusations that Chinese companies were stealing intellectual
property from American firms by forcing them to transfer technology to
China.

 

A quick guide to the US-China trade war

Will Trump's tariffs stop Chinese espionage?

What is a trade war?

The US has imposed tariffs on $250bn worth of Chinese goods, and China has
retaliated by putting duties on $110bn of US products.

 

Mr Trump has also threatened further tariffs on an additional $267bn worth
of Chinese products, which would see virtually all Chinese imports into the
US become subject to duties.

 

The trade dispute has prompted concern over global economic growth and is
putting additional pressure on China's economy, already showing signs of
strain.

 

In the US, it has unnerved financial markets, hurt farmers and raised costs
for American companies, increasing the political pressure on the president
to deliver an agreement

 

On Wednesday, members of Congress expressed concern about the
administration's decision to impose tariffs. But they said they agreed with
the Mr Trump's stated goals and urged the administration to resist the
temptation to strike an easy deal.

 

"We can all strongly agree that China has cheated on trade for decades,"
said Rep Kevin Brady, a Republican who represents Texas.

 

"While we want China to buy more US goods ... it's even more important for
us to hold China accountable."

 

Warm welcome

Previous congressional hearings on Trump's trade policies have been tense as
lawmakers criticise the administration's tariffs and fights with Europe,
Canada and other allies.

 

However, this time US Trade Representative Robert Lighthizer, who has a
reputation as a hard-liner on US-China issues, received a warm welcome.

 

China's vice premier Liu He (l) met President Trump and chief trade
representative Robert Lighthizer in February

Mr Lighthizer said that he was focused on securing a deal that can be
enforced and removes pressure on US companies to share technology with
China.

 

"I don't think we should accept anything that doesn't have structural
changes and is not enforceable," he said.

 

"Real progress" was being made in the negotiations, he added.

 

Mr Lighthizer said an agreement could include provisions for regular
meetings between officials from the two countries.

 

He also brushed aside speculation that his relationship with the president
was under strain. The president recently publicly contradicted Mr Lighthizer
over what form a final agreement should take.--BBC

 

 

 

TikTok: Record fine for video sharing app over children's data

The app lets users make short videos and set them to music, before sharing
with followers

Short-form video sharing app TikTok has been handed the largest ever fine
for a US case involving children's data privacy.

 

The company has agreed to pay $5.7m (£4.3m) and implement new measures to
handle users who say they are under 13.

 

The Federal Trade Commission (FTC) said the Musical.ly app, which was later
acquired and incorporated into TikTok, knowingly hosted content published by
underage users.

 

It has ordered TikTok to delete the data.

 

Additionally, as of Wednesday, TikTok users in the US will be required to
verify their age when they open the app.

 

However, like many social networks, age verification is implemented on a
trust basis - a person signing up simply has to lie about their date of
birth in order to get around the check.

 

"We care deeply about the safety and privacy of our users," the firm said.
"This is an ongoing commitment, and we are continuing to expand and evolve
our protective measures in support of this."

 

Children 'afterthought' for social media companies

Mobile app data sharing 'out of control'

Despite this, TikTok said it would not be asking existing users in other
countries, including the UK, to verify their age as the settlement only
applied to the US.

 

After being one of the most downloaded apps of 2018, TikTok has an estimated
base of 1 billion users worldwide.

 

'Large percentage' of underage users

But the FTC was concerned about how old some of those users were. Its report
said the Musical.ly app had 65 million users in the US, a "large percentage"
of which were underage.

 

TikTok's parent company, China-based ByteDance, acquired Musical.ly in 2017,
and incorporated it into TikTok, discontinuing the original Musical.ly app.
The apps allowed members to create short videos, set to music, to share with
other users.

 

"For the first three years [of its existence], Musical.ly didn't ask for the
user's age," the FTC's statement read.

 

"Since July 2017, the company has asked about age and prevents people who
say they're under 13 from creating accounts. But Musical.ly didn't go back
and request age information for people who already had accounts."

 

The FTC noted media reports suggesting adults on Musical.ly had contacted
children who were obviously under 13 because "a look at users' profiles
reveals that many of them gave their date of birth or grade in school".

 

According to the regulators complaint, Musical.ly was contacted by more than
300 concerned parents in just a two-week period in September 2016. While the
profiles of the children involved were subsequently deactivated, the content
the child had posted was not deleted.

 

The FTC said TikTok would be fined because of what it saw a Musical.ly's
failure to adhere to the basic principles of the Children's Online Privacy
Protection Act, known as Coppa.

 

Obligations include being upfront in how children's data is collected and
used, as well as a mechanism by which to inform parents their child is using
the service, and obtain their consent.

 

The company was also said to have not responded adequately to parents'
requests to delete data, and subsequently held onto that data for longer
than was reasonable.

 

TikTok would not share estimates on how many underage users had been, or
still were, on the platform.

 

'Concerns arise'

TikTok's settlement does not constitute an admission of guilt, but the BBC
understands the firm does not plan to contest any of the FTC's allegations.
The process of deleting the data in question has begun, but the firm could
not give an estimate of how long it would take.

 

To comply with regulations in future, TikTok said it was launching an
"experience" for under-13 users that would strip out much of the
functionality of the main app.

 

"While we've always seen TikTok as a place for everyone, we understand the
concerns that arise around younger users," the company said.

 

"In working with the FTC and in conjunction with today’s agreement, we’ve
now implemented changes to accommodate younger US users in a limited,
separate app experience that introduces additional safety and privacy
protections designed specifically for this audience."

 

That app experience will disable the ability for users to just about
everything TikTok offers, such as "share their videos on TikTok, comment on
others' videos, message with users, or maintain a profile or followers".

 

TikTok told the BBC it did not plan to provide the under-13 experience to
users outside of the US, and instead would continue to limit use to those 13
and above.

 

'A bit complicated'

On social media, panicked TikTok users reported being locked out of their
accounts because of making mistakes when entering the date.

 

Users responded by saying the process did not work properly, or that they
did not have the required verification.

 

"I'm sorry but this is ridiculous, I don't have a government ID and I'm 14,”
wrote one user on Twitter.

 

The firm admitted it was "a bit complicated".--BBC

 

 

 

BBC and ITV set to launch Netflix rival

The BBC, home to crime dramas Luther and Line of Duty, and ITV, maker of
dramas such as The Crown and Vanity Fair, are in the "concluding phase of
talks" to create a rival to Netflix.

 

BBC director general Tony Hall said the aim was to launch "BritBox" in the
UK in the second half of 2019.

 

The price was not announced but Lord Hall said it would be "competitive".

 

ITV's chief executive Dame Carolyn McCall said it would be home for the
"best of British creativity".

 

There are reports it could cost £5 a month.

 

Will BritBox be a hit or a flop?

Why are the BBC and ITV creating BritBox?

Do viewers want a streaming service?

The two organisations already have a BritBox streaming service in North
America, which Lord Hall said was performing "ahead of expectations". It has
500,000 subscribers.

 

"Research with the British public shows that there is a real appetite for a
new British streaming service - in addition to their current subscriptions,"
he said.

 

Dame Carolyn told BBC Radio 4's Today Programme that 43% of all homes which
use the Internet are interested in a subscription to BritBox. For homes
which already subscribe to Netflix, she said that increased to half of all
homes.

 

"There is a window of opportunity here," she said.

 

ITV will spend £25m on the venture this year and £40m in 2020.

 

The BBC did not disclose how much it was spending but Dani Warner, TV expert
at uSwitch, said it "could be a good way for the BBC especially to recoup
losses from Brits abandoning the licence fee for subscription models".

 

It is understood licence fee money will not be used to pay for the service.

 

What happens to iPlayer and ITV Hub?

The new venture is not intended to replace the BBC's iPlayer or the ITV Hub
- the on-demand services where programmes are available for a restricted
period of time.

 

It is expected to have box sets from the BBC and ITV archives.

 

There will also be some programmes commissioned only for BritBox.

 

Shows would appear on the relevant channels, then on the on-demand services
before going on to BritBox.

 

It would be "one permanent, comprehensive home where anyone in Britain can
get all of our library content - both the ITV and BBC library - in one place
and they can watch it anytime, anywhere," Dame Carolyn told Today.

 

What will be on BritBox?

The details have not been announced but BBC shows which are no longer aired
regularly - such as Absolutely Fabulous - may be available.

 

ITV dramas such as Vera and Endeavour - and its predecessor Morse - are also
likely contenders.

 

Dame Carolyn said that existing licensing agreements with Netflix will be
honoured.

 

For instance, last year, Netflix acquired the rights to the BBC show
Bodyguard - from ITV Studios which owns the production company which made
the drama.

 

Why are the BBC and ITV creating BritBox?

Two inescapable trends are driving the TV business around the world today -
one in consumer behaviour, the other in business strategy.

 

The first is exponential growth in streaming, with an accompanied decline in
scheduled TV.

 

The second is consolidation among content providers who are desperately
seeking scale. Britbox is a marriage of the two.

 

For the BBC, the iPlayer is still a small part of overall viewing, but the
key growth area, especially among the younger audiences who much prefer
other digital platforms, particularly YouTube.

 

ITV faces a hugely different set of challenges. It is a mostly ad-funded,
linear channel - the opposite of Netflix, a subscriber-driven, streaming
service.

 

Clubbing together to offer the maximum amount of content allows the BBC and
ITV to provide a better service than they could alone, at a time when other
media giants, such as Disney, are pulling out of Netflix to launch their own
direct-to-consumer offering.

 

Read more from Amol Rajan

 

What could get in the way?

An idea for streaming service - known as Project Kangaroo - was blocked by
the competition authorities nine years ago.

 

Dame Carolyn told BBC Radio 4's Today Programme that the industry had
changed since then.

 

Both the Competition and Markets Authority and media regulator Ofcom are
being consulted on this latest venture.

 

Regulator Ofcom said it was looking forward to discussing the plan with ITV
and the BBC.

 

"We want to see broadcasters collaborating to keep pace with global players,
by offering quality UK content that's available to viewers whenever and
however they want to watch it."

 

ITV said talks with Channel 4 and Channel 5 to join the venture were
ongoing.

 

How is ITV performing?

The announcement came as ITV reported 2018 profits of £567m, up 13% in what
Dame Carolyn said was an "uncertain economic and political environment".

 

ITV's shares were down more than 2.5% in early trading as it admitted that
advertising in the first four months of the year was forecast to be down 3%
to 4%.

 

"It is an uncertain economic world at the moment for the UK... our customers
[advertisers] are more cautious because they are contingency planning and we
expected it to be to be slow," she told Today.

 

The comparison with last year will also be lower because of the football
World Cup in June which boosted advertising.--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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Bulls n Bears 

 

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