Major International Business Headlines Brief::: 03 January 2019

Thu Jan 3 06:54:48 CAT 2019

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Major International Business Headlines Brief::: 03 January 2019

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

*  US markets start 2019 on muted note

*  John Lewis Christmas Eve sales end year with a boost

*  Iceland to fight HMRC over wage dispute 'madness'

*  Cathay Pacific to honour $16,000 fares sold for $675

*  South Africa's rand flat in early trade ahead of trade balance figures

*  Tesla shares drop on disappointing quarterly performance

*  Niger expects GDP growth to rise to 6.5 pct in 2019

*  South Africa's rand gains on easing U.S.-China trade tensions

*  Ugandan shilling trades stable as importer and banks' demand recedes

*  End to Nigerian dispute lifts shares in South Africa's MTN

*  Egypt's central bank holds interest rates

*  Egypt expects 5th tranche of IMF loan in January

*  South African credit demand growth slows to 5.56 pct in November

*  Zambia's 2018 copper output to be above last year's 800,000 tonnes

*  South Africa's rand flat in early trade ahead of trade balance figures

 <mailto:info at bulls.co.zw> 

US markets start 2019 on muted note

US shares rebounded from steep early losses on Wednesday, lifted in part by
energy companies.

The three leading market indexes opened down more than 1%, following reports
of weaker than expected manufacturing activity in China.

But the indexes later rallied. The Dow Jones and S&P 500 closed up about
0.1%, while the Nasdaq gained about 0.5%.

European markets followed a similar path. In London, the FTSE 100 closed up
about 0.1%.

ExxonMobil and Chevron were some of the day's top gainers on the Dow,
following reports suggesting Saudi Arabia was taking steps to cut oil
supply.

London's 100 share index performance 2018

After a rough-and-tumble 2018 - which saw some of the steepest declines on
global stock markets since the financial crisis - the outlook for financial
markets this year is mixed.

Analysts expect economic slowdowns in key countries in 2019, including China
and the US, fuelling investor angst.

Political questions, including over Brexit and US President Donald Trump's
trade battles with China and Europe, have added to those fears.

Central banks are also shifting away from the fiscal stimulus that has kept
the cost of borrowing low in the years after the financial crisis.

On Wednesday, the most immediate cause for concern were new figures that
showed activity in China's manufacturing sector contracted in December for
the first time in more than two years.

Manufacturing activity in the US also shrank.

The shutdown of the US government, triggered by Mr Trump's standoff with
Congress over funding for a wall along the Mexican border, has also added to
concerns.

Still some analysts have said the sell-off that hit financial markets in
recent months overstates the concerns.

In remarks to reporters on Wednesday, Mr Trump - a frequent cheerleader for
rising US stocks - suggested he shared that view, calling the recent
declines a "little glitch".

"It's going to go up once we settle trade issues, and once a couple of other
things happen," he predicted.

On Wednesday, the Dow gained about 18.8 points to end at 23,346.24.

The wider S&P 500 added about 3 points, closing at 2,510.01 while the Nasdaq
climbed about 30.7 points, ending at 6,665.94.--BBC

 <mailto:info at bulls.co.zw> 

John Lewis Christmas Eve sales end year with a boost

Retail chain John Lewis Partnership saw an 11% rise in sales in the last
week of 2018 compared with a year earlier.

The partnership includes both John Lewis department stores and Waitrose
supermarkets.

John Lewis reported very strong sales on Christmas Eve itself - which was
included in the last week of trading - as customers bought last-minute
gifts.

Waitrose sales provided most of the year-end boost, rising 19.2% on the same
week a year ago.

Gift food sales at John Lewis doubled, while beauty and well-being products
saw a 25% increase.

However, in the previous week, ending on 22 December, sales across the
partnership fell 4.8%. Its financial year so far has seen sales remain flat
in both Waitrose and John Lewis.

A Waitrose spokesperson said: "As always at this time of year, our sales
figures are heavily distorted by the fall of Christmas and New Year. Both
these weekly performances were in line with expectations."

The strong figures at Waitrose are likely to have been distorted by
Christmas falling on a different week to last year, therefore boosting 2018
sales.

Sales the prior week were down 11.7 %.

*         What went wrong on the High Street last year?

*         UK High Streets have 'twice as many shops as needed'

*         Nicholas Carroll, senior retail analyst at research group Mintel,
said: "There has obviously been a big distortion by the way the last week
has included Christmas Eve, and we will get a better picture in few days
time when we get sales for the whole of the six week Christmas trading
period.

"Even so at a time when retailing is meant to be on its knees, the John
Lewis figures that we can see look fairly good and they imply an increase in
sales of about 4% over the two week period."

The final week also saw the start of some clearance sales. John Lewis said
that electrical and home technology sales rose 3.1%, with Apple products
performing particularly well and communication technology products also up.

Unsurprisingly, in the middle of the holiday week, sales of Waitrose's fresh
and frozen food did well, rising 22% on the same period last year.--BBC

Iceland to fight HMRC over wage dispute 'madness'

The chief executive and founder of Iceland Foods has described a dispute
with HMRC over the company's Christmas savings scheme as "just madness".

Under the scheme, staff can voluntarily set aside money from their weekly
wages and claim it back later.

However, HMRC has told the company the payment means staff are technically
falling below the minimum wage.

Iceland founder Malcolm Walker intends to fight the HMRC claim, which was
first reported in the Times.

If it loses, the retailer could face a bill of £21m.

HMRC said it did not comment on individual cases.

According to Iceland, it has also been told by HMRC that its policy on
footwear breaches minimum wage rules as well.

HMRC said that staff should be compensated for shoes bought for work, as
Iceland had given staff guidance that "sensible shoes" should be worn.

The guideline applies only to staff who work in stores, since warehouse
staff are provided with safety shoes.--BBC

Cathay Pacific to honour $16,000 fares sold for $675

Cathay Pacific has said it will honour first-class and business-class
tickets that it sold to some lucky passengers for a fraction of the usual
price.

The Hong Kong-based airline mistakenly sold business-class seats on August
flights from Vietnam to New York for about $675 return.

Prices on the same route in July and September cost $16,000.

The airline admitted that it "made a mistake", but said it would honour the
tickets.

The fares were reported by travel bloggers on 31 December and later
withdrawn by Cathay Pacific.

Mac Jaehnert, from Milwaukee, Wisconsin was alerted to the bargain prices on
Twitter and seized the chance to book a first class ticket from Boston to
Hong Kong, and an onward flight to Hanoi in business class for a total of
$1,220.

He had always dreamed of having a first class ticket, he told the BBC, but
as a travel blogger and social media manager for a tech company, he usually
travelled in economy class.

"A one way ticket on Cathay, first [class] is like $18,000 and that's quite
a bit out of my price range."

"When I did the math, what I paid is at about a 95% discount," he said.

"I thought, this has got to be either a once in a lifetime deal, or possibly
a mistaken fare, possibly both."

He was relieved to hear that the airline would be honouring the tickets.

It was not clear how many tickets had been sold and Cathay Pacific did not
immediately respond to requests from the BBC.

The mistake concludes a challenging 2018 for Cathay Pacific, as it tries to
return to profitability after posting its first ever back-to-back annual
loss in March.

The airline has struggled against competition, particularly from low-cost
Chinese carriers covering Hong Kong, mainland China and South East Asia.

In October, Cathay Pacific was the subject of a data breach in its IT
systems, jeopardising the personal information of up to 9.4 million
passengers.

A month earlier, it had to send one of its planes back to the paint shop
after spelling the airline's name "Cathay Paciic" on the side of the jet.

Airlines often honour tickets sold in error, but practices differ from
carrier to carrier and according to circumstances.

Singapore Airlines, for example, honoured tickets sold for less than half
price in 2014.

United Airlines cancelled transatlantic tickets sold for less than $100 by a
"third party software provider" the following year.--BBC

South Africa's rand flat in early trade ahead of trade balance figures

JOHANNESBURG (Reuters) - South Africa’s rand was flat early on Friday,
giving up its small overnight gains as renewed jitters about the impact on
global growth of the simmering trade war between China and the United States
kept investors on the sidelines.

At 0730 GMT the rand was steady at 14.4725 per dollar, unchanged from its
overnight close in New York, having traded at a session-best of 14.4225
before fading as the local session kicked off.

The dollar remained on the back foot, down 0.1 percent, weighed down by a
reversal in stocks after the sharp jump earlier in the week.

Safe-haven assets like the Japanese yen and gold were main beneficiaries of
tentative global trade as concerns about slowing global economic growth and
a partial government shutdown in the United States limited demand for
riskier assets.

In the only local data event of the day, South Africa’s Revenue Service
(SARS) publishes trade balance figures for November at 1200 GMT.

Bonds were weaker, with the yield on the benchmark paper due in 2026 up 3
basis points to 8.96 percent.

The Johannesburg Stock Exchange’s (JSE) Top-40 index opened firmer after a
more than one percent slide in the previous session, rising 0.5 percent to
45,877 points.--BBC

Tesla shares drop on disappointing quarterly performance

Tesla shares have fallen after the electric carmaker revealed that it missed
expectations for deliveries and will be cutting its vehicle prices by $2,000
in the US.

The price cut, which will apply to Model S, Model X and Model 3 cars, is in
response to a reduction in green tax credits.

Tesla said it delivered 90,700 vehicles in the three months to December.

Its shares fell by about 8% at the start of US trading.

Ahead of the price cut announcement, chief executive Elon Musk urged Tesla
customers to make use of federal tax credits.

Worth around £6,000 ($7,500), the credits are set to reduce by half after
the first 200,000 Tesla vehicle deliveries in the US.

The company also said it delivered 63,150 Model 3s in the quarter, falling
short of FactSet estimates of 64,900.

Nicholas Hyett, Equity Analyst at Hargreaves Lansdown, said that investors
had been expecting "Herculean achievements".

"For most automotive groups these would be very impressive numbers - almost
tripling the number of vehicles you deliver in just one year is no mean
feat," he added.

In its previous results statement, Tesla promised to focus on increasing its
production rate, which is crucial to the company's long-term
profitability.--BBC

Niger expects GDP growth to rise to 6.5 pct in 2019

NIAMEY (Reuters) - Niger expects economic growth to rise to 6.5 percent in
2019 from 5.2 percent last year, owing in part to significant investments in
the oil sector, President Mahamadou Issoufou has said.

In an address late on Monday, Issoufou said the oil sector would receive $4
billion in investment over the next two years.

Niger wants to expand its oil sector in part to make up for low prices for
uranium, of which it is one of the world’s leading producers.

South Africa's rand gains on easing U.S.-China trade tensions

JOHANNESBURG (Reuters) - South Africa’s rand gained early on Monday on
reports of progress in trade talks between China and the United States on
the year’s last day of trading.

At 0715 GMT the rand traded at 14.3650 per dollar, up 0.42 percent from its
close of 14.4250 on Friday.

Dollar moves were driven mainly by U.S. politics and the tariff war between
Beijing and Washington remained the key catalysts for the rand and other
emerging-market currencies, with investors cautious in thin-volume trade.

The trade war between the world’s top two economies has unnerved financial
markets and had a mixed impact on the rand, which has lately benefited from
signs of a thaw in hostilities between the two superpowers.

On Sunday, U.S. President Donald Trump said a possible trade deal between
the United States and China was progressing well, creating some demand for
high-yield assets like the rand, which had lost ground to safe-haven assets
at the end of the previous week.

For the year, the rand is down nearly 15 percent, making it the fourth worst
performer against the dollar, behind the Argentine peso, Turkey’s lira, and
the Russian rouble.

Bonds opened firmer, with the yield on the benchmark paper due in 2026 3
basis points lower at 8.865 percent.

Stocks opened higher, with Johannesburg Stock Exchange’s (JSE) Top-40 index
up 0.58 percent to 46,765 points.

Ugandan shilling trades stable as importer and banks' demand recedes

KAMPALA (Reuters) - The Ugandan shilling was unchanged on Friday as appetite
for hard currency from both goods importers and players in the interbank
remained flat.

At 1042 GMT commercial banks quoted the shilling at 3,710/3,720, same level
as Thursday’s close.

End to Nigerian dispute lifts shares in South Africa's MTN

JOHANNESBURG (Reuters) - Shares in South African telecoms giant MTN jumped 8
percent on Thursday after it settled a row with Nigeria’s central bank for a
fraction of the $8.1 billion it had threatened to cost.

MTN announced on Monday that it would pay just $52.6 million to end the
dispute in Nigeria, its biggest and most lucrative market, but also its most
troublesome.

The case had dogged MTN, Africa’s biggest telecoms company, for four months,
dragging its share price down 20 percent to hover around its lowest level
since 2009 while also sparking pessimism around the ease of doing business
in Nigeria.

It centred on allegations that dividends paid by the firm between 2007 and
2015 were based on improperly issued certificates.

The Central Bank of Nigeria (CBN) had initially ordered MTN and its lenders
to bring back $8.1 billion it alleged the company had illegally repatriated
to South Africa during that time.

But after MTN provided additional documents, the central bank concluded only
one 2008 private placement, worth around $1 billion, was irregular. MTN
agreed to pay $52.6 million as a “notional reversal” of this transaction.

“MTN Nigeria will pay the notional reversal amount without admission of
liability,” it said in a statement on Monday, announcing the settlement.

The central bank’s initial order threatened to wipe out more than half of
MTN’s market capitalisation at the time it was issued in August, and spooked
investors just as the company was trying to reassure them of its frontier
market-focused strategy after a series of costly legal problems.

MTN shares were up 4.34 percent to 89.21 rand at 1055 GMT on Thursday, after
rising more than 8 percent to highs of 93 rand in the first trading session
since the settlement was announced.

DIFFICULT MARKET

MTN is Nigeria’s biggest operator, with 52.3 million users in 2017, and the
country accounts for one third of the firm’s annual core profits. But it has
also proven problematic.

While the settlement marks a turning point in MTN’s fortunes in the country,
the telecoms heavyweight still has to fight a $2 billion tax bill from
Nigeria’s attorney general.

It also comes two years after the firm paid $1 billion for missing the
deadline to cut off unregistered SIM cards - a fine that prompted its first
ever annual loss.

MTN was also previously accused of illegally repatriating $14 billion to its
parent company, but was cleared of the allegations.

The latest dispute cemented concerns about firms’ ability to effectively
operate in Nigeria, where a sluggish economy, strained public finances and
upcoming elections have also left some questioning the motives behind such
cases.

“Why did it take the CBN several years to ‘discover’ this and confront MTN?”
said Dobek Pater, a director at consultancy Africa Analysis, adding this at
least suggests negligence or a lack of competence at the central bank.

“Sometimes the government (government organisations’) interpretation of the
law/regulations can be speculative to suit their ends,” he told Reuters via
email.

Egypt's central bank holds interest rates

CAIRO (Reuters) - Egypt’s central bank left its key overnight interest rates
steady on Thursday, keeping the deposit rate at 16.75 percent and the
lending rate at 17.75 percent.

All 13 economists polled by Reuters had expected rates to remain unchanged.

“Current policy rates and the inflation outlook remain in line with
achieving the targeted disinflation path,” the bank’s Monetary Policy
Committee said in a statement.

“The MPC closely monitors all economic developments and will not hesitate to
adjust its stance to achieve its mandate of price stability over the medium
term,” it said.

Headline inflation slowed to 15.7 percent in November from 17.7 percent in
October as fruit and vegetable prices declined, after rising for three
consecutive months.

Core inflation, which strips out volatile items such as food, slowed to 7.94
percent in November, its lowest since April 2016, from 8.86 percent in
October.

GDP grew by 5.3 percent in the fiscal year that ended in June 2018, the
highest rate in 10 years.

Egypt expects 5th tranche of IMF loan in January

CAIRO (Reuters) - Egypt expects to receive the fifth instalment of its $12
billion IMF loan programme in January, the president’s office said on
Sunday.

The International Monetary Fund offered the three-year loan programme in
2016 after Egypt agreed to a package of reforms including the devaluation of
the pound, cuts to energy subsidies and the introduction of a value-added
tax.

The IMF postponed a review of Egypt’s economic reform programme, initially
planned for earlier this month, prompting speculation that the fifth tranche
of the loan, worth $2 billion, might be delayed.

However, central bank Governor Tarek Amer briefed President Abdel Fattah
al-Sisi on Sunday on the “positive results” of the IMF’s most recent staff
team visit to Egypt, Sisi’s office said in a statement.

This included “commendation of the government’s rigorous adherence to the
implementation of targeted reform measures according to predetermined
timetables, with delivery of the $2 billion fifth tranche of the IMF loan
expected in January 2019,” the statement said.

Sisi spoke by phone to IMF Managing Director Christine Lagarde about the
implementation of the reform programme on Dec. 21, the presidency said at
the time.

Many economists have praised Egypt’s economic reforms over the past two
years, though austerity measures have caused immediate pain for wide swathes
of Egypt’s 98 million population.

Egypt earlier this year approved a mechanism to link domestic fuel prices to
those in the international market as it gradually weans the country away
from most energy subsidies, but the government has yet to implement it.

South African credit demand growth slows to 5.56 pct in November

JOHANNESBURG (Reuters) - Growth in private sector credit demand in South
Africa slowed to 5.56 percent in November from 5.82 percent in the previous
month, central bank data showed on Monday.

Expansion in the broadly defined M3 measure of money supply also slowed, to
5.69 percent from 5.99 percent in October.

Zambia's 2018 copper output to be above last year's 800,000 tonnes

LUSAKA (Reuters) - Zambia’s 2018 copper production is projected to rise
above the 800,000 tonnes produced last year, its Minister of Finance
Margaret Mwanakatwe said in a statement on Monday.

Copper output in 2018 continued to increase with a total of 696,526 tonnes
produced between January and October, compared with 654,743 tonnes in the
same period in 2017, Mwanakatwe said.

“The fairly high global copper prices which averaged $6,598 (per tonne) and
demand provided the impetus for copper production,” Mwanakatwe said.

South Africa's rand flat in early trade ahead of trade balance figures

JOHANNESBURG (Reuters) - South Africa’s rand was flat early on Friday,
giving up its small overnight gains as renewed jitters about the impact on
global growth of the simmering trade war between China and the United States
kept investors on the sidelines.

At 0730 GMT the rand was steady at 14.4725 per dollar, unchanged from its
overnight close in New York, having traded at a session-best of 14.4225
before fading as the local session kicked off.

The dollar remained on the back foot, down 0.1 percent, weighed down by a
reversal in stocks after the sharp jump earlier in the week.

Safe-haven assets like the Japanese yen and gold were main beneficiaries of
tentative global trade as concerns about slowing global economic growth and
a partial government shutdown in the United States limited demand for
riskier assets.

In the only local data event of the day, South Africa’s Revenue Service
(SARS) publishes trade balance figures for November at 1200 GMT.

Bonds were weaker, with the yield on the benchmark paper due in 2026 up 3
basis points to 8.96 percent.

The Johannesburg Stock Exchange’s (JSE) Top-40 index opened firmer after a
more than one percent slide in the previous session, rising 0.5 percent to
45,877 points.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

 <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.

(c) 2019 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<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 

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  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

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

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190103/4c0b3a30/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190103/4c0b3a30/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 42387 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190103/4c0b3a30/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29396 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190103/4c0b3a30/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29388 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190103/4c0b3a30/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29420 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190103/4c0b3a30/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190103/4c0b3a30/attachment-0011.jpg>