Major International Business Headlines Brief::: 11 January 2019

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Major International Business Headlines Brief::: 11 January 2019

 


 

 


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*  South African business confidence index falls in December

*  South Africa's Woolworths pulls baby carriers after copying scandal

*  Sibanye-Stillwater expects gold output to miss forecast amid wage strike

*  Tanzania fines Acacia Mining for breaching environmental regulations

*  Company led by ex-MTN CEO Wood exits Nigerian venture 9mobile: sources

*  South Africa's rand flat in early trade

*  Egypt's annual urban consumer price inflation falls to 12.0 pct in Dec -
CAPMAS

*  South Africa's rand to weaken in volatile trade this year

*  South Africa's Absa PMI rises further in December

*  Gold treads lower on improved risk appetite; palladium at record high

*  How much has the shutdown hit the US economy?

*  Ford to cut thousands of jobs in turnaround plan

*  Jaguar Land Rover confirms 4,500 job cuts

*  Brexit: Japan's PM says 'wish of whole world' to avoid no-deal

*  Honda plans six-day shutdown post-Brexit

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

South African business confidence index falls in December

JOHANNESBURG (Reuters) - South African business confidence dipped in
December on lower exports, fewer new vehicle sales and a decline in planned
construction, a survey showed on Thursday.

 

The South African Chamber of Commerce and Industry’s (SACCI) monthly
business confidence index (BCI) fell to 95.2 in December from 96.1 in
November.

 

Seven of the survey’s 13 sub-indices had a negative impact in December, the
business body said in a statement.

 

“The task of restoring the business and investor climate remains a major
challenge,” SACCI said, describing the current business climate as
“hesitant”.

 

After a strong start to 2018, business confidence wavered for much of the
past year as planned land and mining reforms unnerved investors.

 

President Cyril Ramaphosa, who faces a critical election this year, is
trying to revive the economy after a decade of stagnation, but he has been
frustrated by fiscal constraints and infighting in the ruling African
National Congress.

 

“The general assessment is that the present-day administration acknowledges
the huge challenges ahead and the role a sound economy could play in
addressing it,” SACCI said.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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South Africa's Woolworths pulls baby carriers after copying scandal

JOHANNESBURG (Reuters) - South African retailer Woolworths has removed a
baby carrier from its shelves, admitting it had “striking similarities” to a
product offered by a small boutique retailer.

 

The company found itself at the centre of a media storm this week after the
owner of Ubuntu Baba, Shannon McLaughlin, wrote a blog post stating that
Woolworths was selling a product of the same colour, design and name as
hers, for a third of the price.

 

“While there are differences in our baby carrier, there are striking
similarities which we acknowledge and take responsibility for,” the firm
said in a statement, sent to Reuters on Thursday.

 

It apologised to McLaughlin and customers over the issue, which it said went
against its policy, and said the lapse was being addressed internally,
including via the training of staff, suppliers and partners.

 

The incident has been embarrassing for the retailer, which was embroiled in
a copying scandal in 2016 when South Africa’s Advertising Standards
Authority ruled the packaging on a range of its soft drinks imitated that of
small drinks firm Frankies.

 

McLaughlin told Reuters on Thursday while she was pleased the carriers had
been withdrawn, a number of other individuals had been in touch with her to
say large firms, including Woolworths, had done something similar with their
products.

 

“It can’t just end there,” she said, adding it needed to publicly state what
steps it is going to take to prevent this from happening again.

 

 

Sibanye-Stillwater expects gold output to miss forecast amid wage strike

JOHANNESBURG (Reuters) - Sibanye-Stillwater said on Thursday its bullion
output in 2018 would be lower than forecast after almost half of the
employees down tools since mid-November in a wage strike that has killed
four employees at its South African gold operations.

 

The miner said it expected 2018 production to come in at 1.1 million ounces
compared with a guidance of between 1.13 million ounces and 1.16 million
ounces, despite plans being implemented to curb losses.

 

Four employees were killed and several others injured during the
strike-related violence, the miner said on Thursday.

 

While production at local platinum operations is expected to be higher than
its annual forecast at about 1.17 million ounces and PGM (platinum group
metals) production at its U.S unit at 590,000 ounces for 2018, in line with
previous guidance.

 

South Africa’s Association of Mineworkers and Construction Union (AMCU),
which represents around 43 percent of Sibanye-Stillwater’s workforce in
South Africa, downed tools on Nov. 21, 2018, after wage talks with the
company broke down.

 

Gold producers in Africa’s most industrialised economy have argued that
above inflation wage hikes have added to the cost burden of the bullion
industry, which has been hit by depressed prices and labour unrest.

 

On their part, the unions have demanded what they describe as a living wage
for its members.

 

Sibanye’s case centres on its argument that the collective members of three
other unions - which have already signed a three-year wage agreement with
the firm - make up a majority of employees.

 

In that case, the miner would be able to extend the wage agreement to other
minority unions even if they did not agree, leaving any strike unprotected.

 

A dispute-resolution body - The Commission for Conciliation, Mediation and
Arbitration - has been asked to verify the number of Sibanye employees
listed under different unions.

 

 

 

Tanzania fines Acacia Mining for breaching environmental regulations

(Reuters) - Acacia Mining said on Thursday the Tanzanian government has
fined the miner 300 million Tanzanian shillings ($129,143), two days after
the government appointed a new mining minister, over allegations of
breaching environmental regulations at its North Mara mine.

 

Acacia said it has been asked verbally to build a new tailings storage
facility (TSF), a structure for storing uneconomical ore, but had not yet
received any written notice from the government.

 

“Acacia expects that a new TSF is likely to be an economically viable
alternative to further expansions of the existing TSF at the mine,” the
company said.

 

The company’s North Mara mine, where operations remain unaffected, received
an Environmental Protection Order (EPO).

 

Although the National Environment Management Council found discharges of a
hazardous substance at the mine, the company said it was unaware of it and
was awaiting a detailed report.

 

 

Acacia is in the middle of a prolonged spat with the government over a $190
billion tax bill, which has severely limited the London-listed company’s
operations in the East African nation.

 

The Barrick Gold-owned company has been accused of tax evasion by the
government, which charged three of its local subsidiaries, an employee and a
former staffer for money laundering and tax evasion last year.

 

($1 = 2,323.0000 Tanzanian shillings)

 

 

Company led by ex-MTN CEO Wood exits Nigerian venture 9mobile: sources

LAGOS (Reuters) - A firm led by Adrian Wood, the former chief executive of
South African telecoms giant MTN Group Ltd, has pulled out of its Nigerian
telecoms venture 9mobile, two people familiar with the matter said on
Thursday.

 

Wood’s departure, two months after the formal takeover of 9mobile, comes
after disagreements with Nigerian shareholders, the two people said.

 

 

South Africa's rand flat in early trade

JOHANNESBURG (Reuters) - South Africa’s rand held steady in early trade on
Thursday, with the dollar subdued and markets hopeful that an all-out
U.S.-China trade war could be averted.

 

At 0731 GMT, the rand traded at 13.8775 versus the U.S. currency, 0.1
percent weaker compared to its previous close.

 

The rand was helped by optimism following trade talks between the United
States and China, while the dollar remained under pressure after Federal
Reserve policymakers signalled they were becoming more cautious about future
interest rate hikes.

 

The dollar index, which tracks the greenback against a basket of major
peers, was 0.08 percent weaker.

 

South Africa was due to publish November manufacturing data and see the
release of a December business confidence index later on Thursday, two
factors that could also steer trade in the rand.

 

The benchmark 2026 government bond was slightly stronger, while stocks
opened on the defensive with the Johannesburg Stock Exchange’s top-40 index
down 0.6 percent.

 

 

Egypt's annual urban consumer price inflation falls to 12.0 pct in Dec -
CAPMAS

CAIRO (Reuters) - Egypt’s annual urban consumer price inflation decreased to
12.0 percent in December from 15.7 pct in November, the official statistics
agency CAPMAS said on Thursday.

 

Inflation has cooled steadily in recent months after an increase in fuel,
electricity and transportation prices earlier this year had sent the rate up
to a high of 17.7 percent in October.

 

Egypt has implemented a series of tough austerity measures to help meet the
terms of a $12 billion IMF loan programme it signed in late 2016.

 

 

 

South Africa's rand to weaken in volatile trade this year

JOHANNESBURG (Reuters) - South Africa’s rand will lose over 3 percent of its
value in volatile trade against the dollar this year, a Reuters poll of
market strategists found on Wednesday, but should be cushioned by wavering
expectations for U.S. interest rates.

 

The health of the world’s two biggest economies - the United States and
China - has been thrown into question in recent months as the two battle
each other over trade, injecting new uncertainty over how high U.S. interest
rates will go.

 

This has rattled emerging market currencies like the rand, while equity
markets around the world have mostly tumbled since October on fears of a
global economic slowdown.

 

Last month’s Reuters survey of 40 strategists suggested the rand would slide
to 14.27 per dollar in just a year’s time.

 

In a poll of the strategists taken in the past week, the rand is expected to
weaken over 3 percent to 14.43 against the dollar towards the end of this
year, from just under 14 per greenback now.

 

That is a modest move compared with the range it traded in last year - from
around 11.50 per dollar in February to over 15.69 in early September.

 

Forecasts for end-2019 were also in a fairly wide range, from 12.63 to
16.50.

 

“While the rand has reached 13.86 per dollar in these first few days of 2019
already, its path is likely to remain volatile, running off risk sentiment,”
wrote Investec chief economist Annabel Bishop in a note.

 

Market volatility reared its head again last month after part of the U.S.
Treasury yield curve inverted, raising worries whether it is now signalling
an oncoming recession as it has reliably done in the past.

 

The Fed raised rates four times in 2018, including in December, when
policymakers’ own forecasts shifted down to show two more coming this year,
from three predicted previously.

 

Financial market pricing at the moment is at odds with policymakers’
judgment. During the worst of equity market selling around the turn of the
year, U.S. interest rate futures began to partly price in an interest rate
cut late in 2019.

 

The South African Reserve Bank, for its part, is expected to hike the repo
rate by a quarter of a percent to 7 percent in May, according to a Reuters
survey last month, around the time the country is due to hold a national
election.

 

But that isn’t likely to do much to prop up the rand.

 

The SARB increased its benchmark lending rate two months ago for the first
time in nearly three years, saying the risk of higher inflation in the
longer-term remained elevated and that it could not chance waiting until
later to take action.

 

“In a nutshell, a combination of weaker global growth in 2019 and a lack of
real domestic reform momentum, even after the elections, should keep the
rand at a level that is somewhat undervalued,” said Hugo Pienaar, economist
at the Bureau for Economic Research.

 

A recent Reuters poll showed economists are forecasting just 1.5 percent
growth this year, one of the weakest expected growth rates among emerging
market economies.

 

 

 

South Africa's Absa PMI rises further in December

JOHANNESBURG (Reuters) - South Africa’s seasonally adjusted Absa Purchasing
Managers’ Index (PMI) rose further in December, supported by an improvement
in business activity and higher new orders.

 

The index, which gauges manufacturing activity in Africa’s most
industrialised economy, rose to 50.7 in December from 49.5 in November,
above the 50 mark that separates contraction from expansion.

 

New orders and business activity were at their highest level in 2018 last
month, but the survey’s employment sub-index slumped to its lowest since
2014.

 

“While the December survey results are encouraging, a sustained recovery in
demand is required before a meaningful recovery in manufacturing output,
investment and employment can take place,” economists from the Bureau for
Economic Research, which conducts the survey, said in a statement.

 

The South African economy is staging a gradual recovery after falling into
recession last year. Stronger manufacturing growth in the third quarter was
one of the main reasons why the economy exited recession.

 

 

 

Gold treads lower on improved risk appetite; palladium at record high

BENGALURU (Reuters) - Gold prices edged lower on Wednesday as a likely end
to a long-drawn Sino-U.S. trade war boosted risk sentiment, outweighing
expectations of a pause in interest rate increases by the Federal Reserve.

 

Meanwhile, palladium hit a record high at $1,340.50 an ounce during the
session.

 

Spot gold slipped 0.2 percent to $1,282.61 per ounce by 0600 GMT, and U.S.
gold futures settled down 0.1 percent at $1,284 per ounce.

 

“In the short term, there is some optimism that there will be a trade truce,
which will take away a shadow from market confidence,” said Benjamin Lu
Jiaxuan, a commodities analyst at Phillip Futures.

 

However, gold is seeing some headwind because of a gradual recovery in risk
assets, as well as investors pricing in the U.S. Federal Reserve’s dovish
signals, he added.

 

Asian shares climbed to a 3-1/2-week high in early trade on optimism that
Washington and Beijing could strike a trade deal to avoid an all-out
confrontation that would severely disrupt the global economy. [nL3N1Z83KS]

 

The rally in riskier assets has accelerated since last Friday, when Federal
Reserve Chairman Jerome Powell said he was aware of risks to the economy and
would be patient and flexible in policy decisions this year. [nL1N1Z41A1]

 

“With Fed clearly indicating that they would be receptive to the
developments in the financial markets and there is a clear emerging
consensus that there may not be any rate hikes, it could be a tailwind for
gold,” said Hitesh Jain, vice president, Yes Securities.

 

“But, the ETF flows are not still, not bounding. On the sovereign front,
there are lots of central banks buying gold. Once we see a momentum on the
ETF front, that would be an inflection point for gold to move up.”

 

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said
its holdings fell 0.03 percent to 796.53 tonnes on Tuesday from 796.78
tonnes on Monday. [nEMN1CYCIX]

 

Markets also await the release of minutes from the Federal Open Market
Committee’s Dec. 18-19 policy meeting at 1900 GMT for cues on future
interest rate increases.

 

“Sizing up the technical picture, a top may be taking shape in gold
already,” said Ilya Spivak, a currency strategist at DailyFX.

 

“A daily close below initial support at $1,282.27 opens the door for a test
of the $1,257.60-$1,266.44 area.”

 

Standard Chartered, in a note, said that the demand for palladium remained
robust, forecasting a continued supply deficit through 2020.

 

“The recent rally appears to be investor-led rather than reflecting a
further significant tightening in fundamentals,” the bank said.

 

Silver fell 0.2 percent to $15.62 per ounce, while platinum was up 0.6
percent at $819.50.

 

 

 

How much has the shutdown hit the US economy?

Washington is at a standstill, as US President Donald Trump and Democrats
feud over his demand to include $5.7bn (£4.5bn) for a border wall in a new
spending bill.

 

The fight has closed parts of federal agencies since 21 December and is on
track to be the longest government shutdown in US history.

 

Food inspections have halted. Listings of new companies are on hold.
Mortgage approvals have been delayed and the release of certain economic
data has been suspended.

 

But how much of a difference does the upheaval make to the economy?

 

For those outraged by the impasse, the answer may be unsatisfying because,
at least for now, it appears to be - not much.

 

Economists estimate that the shutdown is likely to shave between about 0.04%
and 0.07% of gross domestic product (GDP) off economic growth per week - an
average of just over $1bn a week.

 

Trump digs in as shutdown continues

US government shutdown: Where do we go from here?

#ShutdownStories: The impact of the government shutdown

That is far less than estimated losses of more than $20bn incurred during
the 16-day shutdown in 2013, which affected much more of the government.

 

"As long as this shutdown is relatively short, these impacts are going to be
fairly modest," says Joel Prakken, chief US economist for Macroeconomic
Advisors by IHS Markit.

 

Where are the losses coming from?

The fight has closed parts of most major departments, including the State
Department, the Treasury Department and the Department of Homeland Security.

 

The most immediate pain stems from those closures, which mean about 800,000
federal workers will not receive pay this week. Many contractors are also
affected.

 

Lila Johnson, 71, is a member of the 32BJ SEIU labour union, which
represents about 2,000 custodian and security guard subcontractors at
federal agencies involved in the shutdown.

 

Her part-time job, as a custodian at the Department of Agriculture, pays
$22.10 an hour and helps to supplement her retirement as she cares for two
great-grandsons.

 

But her last pay cheque arrived at the end of December.

 

Ms Johnson is now relying on her Social Security benefit to keep up with car
payments, credit card balance and other bills - and is starting to fall
behind.

 

"It's a struggle," she says. "I have to pay a little here and a little
there. I'm doing the best I can... but people need to go back to work to
take care of their families."

 

But you said the impact was minimal?

While wages for contractors like Ms Johnson are uncertain, in previous
shutdowns, federal workers have recouped their pay.

 

 

Many also earn enough to absorb a hit to their finances without seriously
reducing other spending - as long as it's temporary.

 

The average annual compensation, including benefits, of the federal workers
affected is more than $100,000, according to Mr Prakken.

 

Most importantly, unlike previous shutdowns, this one involves much less of
the government - the bill concerns only about 25% of money Congress
allocates to fund the government. And about half of the staff going without
pay are still working, minimising wider disruption.

 

There are other losses - such as cancellations at national parks which are
closed. But it is likely tourists are spending their dollars elsewhere,
mitigating the wider economic effect.

 

"While it is certainly a concern, the size of the impact is rather small,"
says Beth Ann Bovino, chief US economist at S&P Global. "We are a $19
trillion economy after all."

 

What if this continues?

Right now, much of the pain is being felt in areas with large concentrations
of federal workers, like Washington, DC, where Moody's Analytics estimates
that one in six jobs are potentially affected.

 

But as the shutdown persists, economists warn that the delays and lost pay
cheques will start to add up.

 

Government shutdown 'embarrassing' to US tech industry

Can Trump declare a national emergency to build a wall?

By Friday, S&P Global estimates the shutdown will have cost the economy
$3.6bn. Within two weeks, the firm says losses from the shutdown will be
larger than the cost of the wall itself.

 

"Even though it is a small amount, it still hurts," Ms Bovino says.

 

Already, the chaos, suggestive as it is of political dysfunction, is likely
to have hit confidence.

 

The business world is also worried about missing certain economic data,
including retail sales GDP figures, at a time of uncertainty over the
economy's direction.

 

"We would have a less clear picture into the economy if it were to go on
much longer," Federal Reserve chair Jerome "Jay" Powell warned on Thursday,
adding that an "extended" shutdown would hurt growth.

 

Michael Roosevelt, co-owner of a small brewery in New Jersey, expected to
open an expansion this month that would allow his Alementary Brewing Co to
roughly quadruple its output and lead to the hiring of several new workers.

 

But he's still waiting on a licence from the federal Alcohol and Tobacco Tax
and Trade Bureau, which is shut, while paying about $1,000 per day to cover
the new lease, utilities and equipment loan.

 

"In another week or so, that's when the panic is going to set in," he
said.--BBC

 

 

Ford to cut thousands of jobs in turnaround plan

Carmaker Ford has announced plans for a major shake-up of its operations in
the UK and mainland Europe.

 

It is expected to lead to thousands of job losses across Europe, including
the UK, although cuts at its UK factories are not thought to be imminent.

 

But Ford Europe boss Steven Armstrong said should the UK leave the EU
without a negotiated deal, a further review of UK operations would take
place.

 

Ford is now going to talk to unions about measures to reduce costs.

 

This includes focusing on more profitable models and exiting less profitable
markets, to concentrate more in future on electric and hybrid technology.

 

The firm will also expand its commercial vehicle business, which will be one
of three new divisions being created, along with passenger vehicles and
imported vehicles.

 

Ford hopes the changes will enable it to achieve a 6% operating margin in
Europe.

 

The UK's biggest union Unite said it was working closely with Ford to
safeguard jobs in the UK and look after the interests of employees.

 

The union also said it expected the impact of cuts on jobs in the UK to be
limited.

 

'Wrong direction'

Speaking to reporters after the announcement, Mr Armstrong said the firm
"needed to address the parts of the business that are unprofitable".

 

But he said the move had not been forced upon the firm by the UK vote to
leave the European Union on 29 March.

 

"This is not a consequence of the Brexit situation," he said. "This is not a
one or two-year issue."

 

He added: "If Brexit goes in the wrong direction and we have a hard Brexit,
we would need to look again about what we could do to mitigate the impact of
that [in the UK]."

 

He said potential closure of plants would "not be off the table".

 

Engine uncertainty

Ford says there will be a "reduction of surplus labour" across all its
business functions.

 

It has not released any figures, as discussions with unions are continuing,
but that it could be in "thousands".

 

Ford operates two engine factories in the UK, at Dagenham, east of London,
and Bridgend in Wales, as well as a joint venture with the gearbox
manufacturer Getrag on Merseyside.

 

The announcement is likely to renew concerns about the long-term future of
the Bridgend plant in particular. It is already due to lose a major contract
to build engines for Jaguar Land Rover in 2020.

 

Profits at Ford of Europe fell 82% last year, in part due to the fall in the
value of the pound as a result of uncertainty over Brexit.

 

It is understood that while this is a preoccupation for the company, it is
one of many factors affecting the business, which has been underperforming
for years.

 

The BBC understands that Ford's Dunton Technical Centre in Essex could
potentially benefit from new investment in the commercial vehicles business.

 

Ford of Europe has 54,000 employees, with 13,000 in the UK. As well as the
UK engine plants, it has other operations in Germany, France, Turkey, Spain,
Russia, Romania, and Belgium.

 

As part of the shake-up the firm says it will stop manufacturing automatic
transmissions in Bordeaux, France, in August, and will review its operations
in Russia,

 

Mr Armstrong also said the company was in negotiations with staff
representatives about potential job cuts at its Saarlouis plant in Germany,
where 6,190 staff assemble cars, as the firm considers discontinuing
production of its Ford C-Max model.

 

Diesel slump

The news comes as rival Jaguar Land Rover (JLR) is set to announce it is
cutting up to 5,000 jobs from its 40,000-strong UK workforce.

 

Management, marketing and administrative roles are expected to be hardest
hit, but some production staff may also be affected.

 

The layoffs are part of a £2.5bn cost-cutting plan amid what industry
insiders have called a "perfect storm".

 

They mean a downturn in Chinese sales, a slump in diesel sales and concerns
about UK competitiveness post-Brexit.--BBC

 

 

 

Jaguar Land Rover confirms 4,500 job cuts

Jaguar Land Rover (JLR) has confirmed it is cutting 4,500 jobs, with the
substantial majority coming from its 40,000 strong UK workforce.

 

Most will be in office roles as the company wants to simplify its management
structure. The cuts come on top of last year's 1,500 job losses.

 

JLR is facing several challenges, including a slump in demand for diesel
cars and a sales slowdown in China.

 

The firm has also complained about uncertainty caused by Brexit.

 

The firm, which is owned by Indian conglomerate Tata, made a £90m pre-tax
loss in the three months to September 30, a major reversal from the £385m
profit of the previous year.

 

"We are taking decisive action to help deliver long-term growth, in the face
of multiple geopolitical and regulatory disruptions as well as technology
challenges facing the automotive industry," said JLR's chief executive, Ralf
Speth.

 

JLR workers 'tense' after cuts announced

JLR, the UK's biggest vehicle maker, says it will be making further
investment in electrification, with electric drive units to be produced at
Wolverhampton and a new battery assembly centre to be established at Hams
Hall, Birmingham.

 

It comes as JLR revealed various annual and December 2018 sales figures:

 

Total Jaguar Land Rover retail sales in 2018 came to 592,708 vehicles, down
4.6% compared with 2017. Retail sales for December were 52,160, down 6.4%
year-on-year, primarily due to slowdown in China.

The introduction of the Jaguar E-Pace and I-Pace led to Jaguar's best ever
annual sales results in 2018, up 1.2% to 180,833. And December was a strong
month, with sales of 16,165, up 7.2%.

But sales of Land Rover models fell by 6.9% to 411,875 as market conditions
in China and Europe deteriorated. Sales slumped by 11.4% in December to
35,995.

Unite, the country's largest manufacturing union, said it would be pressing
the car maker to safeguard its members' jobs.

 

"Britain's car workers have been caught in the crosshairs of the
government's botched handling of Brexit, mounting economic uncertainty and
ministers' demonisation of diesel, which along with the threat of a no deal
Brexit, is damaging consumer confidence," Unite national officer Des Quinn
said.

 

"Government ministers need to wake up and start doing more to support UK's
car workers."

 

JLR plans a voluntary redundancy scheme, to help manage the latest round of
job cuts.

 

Jaguar Land Rover has been saying for more than a year that Brexit
uncertainty would eventually take its toll on the perception of the UK as a
stable and competitive base for global manufacturing.

 

In July last year, the company said it needed more certainty around Brexit
in order to continue investing in its UK operations and warned that a
"no-deal" Brexit would cost the company more than £1.2bn in profit each
year.

 

If, as expected, the UK bears the brunt, or the entirety, of JLR's global
cost-cutting, JLR may well say it tried to warn us.

 

Another massive flashing red light is a collapse in sales in its biggest
market - China.

 

And JLR is also one of the most heavily exposed car makers to continuing
consumer confusion about the wisdom of buying a diesel car in the aftermath
of the VW emissions scandal.

 

Ninety percent of its vehicles are diesel-powered, although it has been
investing in new electric and hybrid vehicles.

 

What's gone wrong at Jaguar Land Rover?

UK car sales see biggest fall since financial crisis

China car sales fall for the first time in 20 years

The layoffs come amid what industry insiders have called a "perfect storm".

 

That includes a slowdown in Chinese sales, a slump in diesel sales and
concerns about UK competitiveness post-Brexit.

 

China has been the company's biggest and most profitable market.

 

But sales there have fallen nearly 50% in recent months as cautious Chinese
consumers have been holding back on big ticket purchases.

 

The relationship between JLR and its Chinese sales network have also been
strained as dealers have demanded better terms and promotional incentives.

 

The issues at JLR have arisen as Ford is also looking to cut back on its
workforce numbers in Europe.

 

Recently JLR announced it would move all production of the Land Rover
Discovery to a new plant in Slovakia with plans to hire up to 3,000 workers.

 

In China it has hired 4,000 workers since 2014.

 

Here in the UK, JLR's Castle Bromwich factory makes the Jaguar XE, XF and
F-type models, while the Solihull facility produces the Jaguar F-Pace, Land
Rover Discovery and Range Rover models.

 

The company's Ryton and Halewood facilities manufacture the Jaguar XE SV
Project 8, Range Rover SV Coupé, Land Rover Discovery Sport and Range Rover
Evoque models.

 

As well as its UK manufacturing centres, JLR also has facilities in Brazil,
Austria, Slovakia, India and China.--BBC

 

 

 

Brexit: Japan's PM says 'wish of whole world' to avoid no-deal

The "whole world" wants the UK to avoid a no-deal Brexit, Japan's PM has
claimed, after talks with Theresa May.

 

Shinzo Abe pledged "total support" for the withdrawal agreement she has
negotiated with the EU, which faces a crunch vote in the Commons on Tuesday.

 

Mrs May has been speaking to Labour MPs and union leaders in a bid to try to
get her deal through the Commons, where scores of her own MPs oppose it.

 

It comes as Honda UK announced a six-day post Brexit shut down.

 

The Japanese-owned car giant said the move was to ensure it could adjust to
"all possible outcomes caused by logistics and border issues".

 

Mrs May said leaving the EU provided "an unprecedented opportunity" for the
countries to strengthen relations.

 

She and Mr Abe pledged to build on the trade agreement between Japan and the
EU to secure an "ambitious bilateral arrangement" between Japan and the UK
after Brexit.

 

Mr Abe said: "It is the strong will of Japan to further develop this strong
partnership with the UK, to invest more into your country and to enjoy
further economic growth with the UK.

 

"That is why we truly hope that a no-deal Brexit will be avoided, and in
fact that is the whole wish of the whole world.

 

"Japan is in total support of the draft withdrawal agreement worked out
between the EU and Prime Minister May, which provides for a transition to
ensure legal stability for businesses that have invested into this country."

 

The UK is set to leave the European Union on 29 March.

 

The withdrawal agreement between the UK and EU - covering things like the
"divorce bill", expat citizens' rights and a 20-month transition period -
will only come into force if MPs back it in a vote.

 

A no-deal Brexit would see the UK leave without a withdrawal agreement and
start trading with the EU on the basis of World Trade Organization rules, an
outcome favoured by some Brexiteers.

 

The deal negotiated between the UK and EU looks set to be rejected by MPs
next Tuesday, with 110 Conservative MPs having said they will oppose it,
Labour set to vote against it and Labour Leader Jeremy Corbyn calling for a
general election "at the earliest opportunity" - should it be voted down.

 

"A government that cannot get its business through the House of Commons is
no government at all," he said.

 

"We're going to get smashed" - one government insider's apocalyptic
prediction about one of the most important votes in recent political
history.

 

As things stand, MPs are on course to kybosh Theresa May's long-argued-over
Brexit deal, with a very heavy defeat.

 

Dozens of her own backbenchers have said publicly they will vote against it.

 

The opposition parties are adamant they will say "no" too.

 

Read more from Laura

 

Mrs May has been speaking to some Labour MPs and the leaders of two of the
UK's biggest trade unions, Len McCluskey of Unite and Tim Roache of the GMB,
in a bid to try to build support for the deal.

 

It has emerged that the government is considering backing an amendment from
Labour Leave supporter John Mann, giving extra protections to workers and
the environment, in a bid to win support.

 

Speaking alongside Prime Minister Abe, Mrs May repeated her call to MPs to
support her plan in next Tuesday's crunch vote, saying: "The only way to
avoid no deal is to have a deal and to agree a deal, and the deal that is on
the table...the EU has made clear, is the only deal."

 

 

She said the deal allowed for a "more ambitious trading arrangement between
the European Union and the United Kingdom than they have entered into with
any other third country" which would also allow the UK to "strike good trade
deals on our own with countries around the world, like Japan".

 

Labour MP Martin Whitfield, a supporter of the Best for Britain campaign for
another referendum, said: "It is humiliating for the prime minster to be
told to her face that the whole world wants to avoid a no-deal scenario, yet
she still refuses to rule it out.

 

"Countries across the globe are looking at Britain in despair. Japan, like
our other allies, understands the folly of a no-deal Brexit. Why doesn't
Theresa May?"

 

Meanwhile, during the second of five days of debate on the deal,
Conservative MP George Freeman has told MPs he will now vote for it "with a
heavy heart", having previously said he could not support it.

 

He said it "wasn't perfect" but he would back it because "we are now in the
dying stages and no deal is unconscionable".

 

Trade between the UK and Japan hit £28bn last year, and Japanese companies
already employ 150,000 people in the UK.

 

During their meeting in Downing Street, Mrs May and Mr Abe also discussed a
number of joint projects, including research around conditions such as
dementia and heart failure, the increasing use of big data and artificial
intelligence, and environmentally friendly growth.

 

They also made commitments on security - such as the UK deploying the Royal
Navy warship HMS Montrose to the region to enforce sanctions against North
Korea.

 

And as part of a cultural exchange, the National Gallery will send a major
exhibition to Japan, including the Sunflowers painting by Vincent Van
Gogh.--BBC

 

 

Honda plans six-day shutdown post-Brexit

Honda UK has said it will shut down its Swindon factory for six days in
April as part of its preparations for any disruption caused post-Brexit.

 

The Japanese-owned car giant said the move was to ensure it could adjust to
"all possible outcomes caused by logistics and border issues".

 

The firm said it would help in recovering lost production if shipments of
parts were held up at borders.

 

Honda employs about 3,400 people at its Swindon plant.

 

In a statement, the company said: "We are planning six non-production days
in April 2019. This is to facilitate production recovery activity following
any delays at borders on parts.

 

"These contingency provisions have been put in place to best mitigate the
risk of disruption to production operations at the Swindon factory."

 

A Toyota spokesperson said: "We need a deal. We will have peak production in
March because we have a new model, the Corolla.

 

"There is no planned production stop. No deal is not an option for us. We
operate lean manufacturing and hold hours of inventory at the plant."

 

The spokesperson added that the firm could "increase this by hours or
perhaps a few days but there is no contingency that can offset no deal and
production lines would start or stop".

 

Counting the cost

Last year, the senior vice-president of Honda Europe warned that if the UK
left the EU without a deal, it would cost his company tens of millions of
pounds.

 

Ian Howells told the BBC that quitting the bloc without an agreement would
affect the carmaker's competitiveness in Europe.

 

He said the Japanese firm was preparing for a no-deal outcome, but had not
discussed relocating its Swindon plant.

 

The firm builds its Civic model in the UK for the global market.--BBC

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


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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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