Major International Business Headlines Brief::: 28 January 2019

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Major International Business Headlines Brief::: 28 January 2019

 


 

 


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*  When a superman flies u call him a hero. When my granny flies U call her
a witch.. Guys let's support local talents

*  S. Africa farmers seek $220 million in drought aid

*  South African maize planting area seen down 14 pct from last season

*  East African Breweries' to jumpstart growth in bottled beer in Kenya

*  Diamond Bank rises as Access Bank sets completion date for merger

*  Algeria economic growth up to 2.3 pct in 2018-fin min

*  US lifts sanctions on Putin ally's firms

*  Venezuela crisis: Will the US target oil exports?

*  Why China is under pressure to make a trade deal

*  Man Booker loses £1.6m hedge fund sponsor amid talk of tension

*  Vogue Business: New title focuses on fashion industry

*  Mental health: UK could ban social media over suicide images, minister
warns

*  Tesco warns of 'changes' amid reports of jobs cuts

*  US shutdown: Four reasons why Trump blinked

*  Facebook to integrate WhatsApp, Instagram and Messenger

 


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South Africa cenbank governor sees no reason for a Moody's rating downgrade

DAVOS, Switzerland (Reuters) - There has not been any negative development
for South Africa’s sovereign rating since Moody’s last pronouncement on the
creditworthiness of the country, central bank governor Lesetja Kganyago said
on Friday.

 

Moody’s is the last of the top three ratings firms to have Pretoria’s
long-term foreign-currency debt at investment grade.

 

“I have not seen anything that is credit-negative that has developed since
Moody’s last pronouncement on our credit rating,” Reserve Bank Governor
Lesetja Kganyago told Reuters at the World Economic Forum.

 

“(Nothing) has developed that would lead us to say the following risks have
materialized and as such the rating is at risk,” he said in an interview.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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S. Africa farmers seek $220 million in drought aid

PRETORIA (Reuters) - South Africa’s agricultural industry body AgriSA will
approach banks, agribusiness and government to raise 3 billion rand ($220
million) to help farmers hit by severe drought, its executive director said
on Friday.

 

Farmers have faced dry conditions over most of the nation for the last year,
even as they are still recovering from a disastrous El Nino-induced drought
in 2015.

 

“We have basically reached a point now where we don’t have any more fat in
the system. There is no buffer any more in the agricultural sector,” AgriSA
boss Omri van Zyl told reporters.

 

Van Zyl said the group will also speak to the government’s National Disaster
Management agency to get access to the contingency reserves.

 

“We see this drought again as a national emergency because it is going to
have an impact directly on consumer prices, it is going to have an impact on
food affordability and it has an impact on the farmers on the land,” said
van Zyl.

 

A survey of producers showed that 31,000 jobs and 7 billion rand ($510
million) in potential revenue were lost since January last year because of
drought, AgriSA said.

 

White maize prices are just off a near two-year peak last week.

 

“The farmers didn’t get enough (income) to recuperate in 2016 so the grain
sector is in a lot worse financial situation than it was. Our ability to
absorb this current drought is under pressure,” Jannie de Villiers, head of
producers body Grain SA, also told reporters at the briefing.

 

In early estimates for the 2018/2019 season, farmers have planted around 95
percent of the country’s yellow maize, which is mainly used in animal feed,
and between 70 to 80 percent of the white maize, pushing prices higher.

 

The white maize futures contract due in March traded up 2.76 percent to
3,088 rand on Friday, just under a near two-year high of 3,255 rand reached
last week.

 

South Africa’s official Crop Estimates Committee, which in October estimated
farmers would plant 2.448 million hectares of maize in the 2018/2019 season,
is expected to release the preliminary area planted estimates on Jan. 29.

 

($1 = 13.6750 rand)

 

 

South African maize planting area seen down 14 pct from last season

JOHANNESBURG (Reuters) - South African maize farmers are expected to plant
14 percent less of the staple crop in the 2018/2019 season compared with the
previous season after dry conditions delayed plantings outside the optimum
window.

 

South Africa’s Crop Estimates Committee (CEC) is expected to forecast the
planted area at 1.998 million hectares, down from the 2.318 hectares planted
last season, according to an average estimate of five traders and analysts
polled by Reuters.

 

The range of total maize estimates was 1.94 million to 2.07 million
hectares.

 

The poll estimates that 18 percent less maize will be planted compared with
the CEC’s October estimate of 2.448 million hectares.

 

“Uncertainty on hectares planted for maize remains high after the lack of
and insufficient seasonal rains caused farmers to delay preparation and
planting of crops and in some cases entirely prevented others planting at
all, especially in the North West and Free State provinces,” said trader and
director at Riddermark Capital Warren Langridge.

 

The average estimated from the poll pegs the crop at 1.08 million hectares
of white maize, used for human consumption, and 0.99 million hectares of
yellow maize used mainly in animal feed.

 

Concerns over yields have pushed up maize prices, with the white maize
futures contract due in March up 2.76 percent at 3,088 rand by the close on
Friday, just under a two-year high of 3,255 rand reached last week.

 

“Follow-up rains are critical to ensure decent yields, otherwise, the 2019
output might decrease to the drought levels of three years ago,” said FNB
Senior Agricultural economist Paul Makuba.

 

The CEC will issue its preliminary forecast for the area planted for the
2018/2019 maize growing season on Tuesday.

 

 

East African Breweries' to jumpstart growth in bottled beer in Kenya

NAIROBI (Reuters) - East African Breweries aims to jumpstart growth in sales
of bottled beer in Kenya, as its biggest market’s economy recovers and the
government looks set to hold off on tax increases, its chief executive said
on Friday.

 

The brewer, which is controlled by Britain’s Diageo and is known for its
Tusker beer, said sales of bottled beer were flat in the first half of the
year to December after the government raised excise duty by 5.2 percent.

 

Kenya, which contributes 70 percent of annual revenue, has taxed beer and
cigarettes heavily to boost government coffers

 

The government raised excise duty on beer by 43 percent at the end of 2015,
hitting demand for EABL’s beer.

 

CEO Andrew Cowan said he “... wouldn’t expect to see the government doing
unpredictable things. I don’t see the government going back to that space.”

 

Kenya has one of the highest rates of tax on beer on the continent. Tusker
has a recommended retail price of 150 shillings ($1.49) per bottle, with
close to half going to the taxman.

 

Pretax profit at EABL surged by a third in its first half, driven by a 13
percent jump in net sales as sales of its low-priced Senator Keg beer in
Kenya made a strong recovery after demand was depressed by election jitters
in 2017.

 

Senator Keg beer, made from locally grown sorghum, is dispensed in mugs from
barrels in bars.

 

Shares of EABL rose more than 10 percent on Friday after the results, which
included a 25 percent increase to the interim dividend, were released late
on Thursday.

 

EABL also reported double-digit growth in sales of high-end spirits, such as
Ciroc Vodka, and its mid-priced Chrome vodka.

 

The brewer, which also operates in Tanzania and Uganda, is also relying on
health-conscious consumers to move sales of bottled beer back into growth,
Cowan said.

 

“We will be getting new consumers into beer who want lower sugar, lower
calorie drinks,” he said, citing the company’s White Cap and Balozi beer
brands.

 

($1 = 100.6500 Kenyan shillings)

 

 

Diamond Bank rises as Access Bank sets completion date for merger

LAGOS (Reuters) - Shares in Diamond Bank rose 10 percent on Friday to a
three week high, a day after rival Access Bank said it was aiming to
complete a $235 million takeover of the mid-tier lender by April 1.

 

Access Bank shares rose more than 8 percent on Friday to a three-week high.
The gains in the two banks helped the main index to rise 1.41 percent.

 

On Friday, a Nigerian court ordered a meeting of both shareholders for March
5, to approve the takeover.

 

 

 

Algeria economic growth up to 2.3 pct in 2018-fin min

ALGIERS (Reuters) - OPEC member Algeria’s economy grew 2.3 percent in 2018
due to higher oil prices, the finance ministry said on Thursday, up from 1.4
percent the previous year but below a four percent government forecast.

 

The price of the country’s oil exports last year averaged $72.43 a barrel,
against $52.71 in 2017, it said.

 

Oil and gas account for 60 percent of the budget and 94 percent of total
exports revenue.

 

The North African country also increased state spending for 2018 by 25
percent after a 14 percent cut in 2017.

 

Algeria has failed for now to develop its non-hydrocarbon sector, which grew
four percent last year, up from 2.2 percent in 2017, according to the
ministry’s figures.

 

The government expects the economy to expand by 2.6 percent this year due to
a 1.5 percent reduction in spending and lower energy revenue projection.

 

Oil and gas earnings should reach $33.2 billion, down from the $34.37
billion target for 2018, because of growing domestic consumption.

 

The government is benefiting from a recovery in global crude oil prices but
a large proportion of energy revenue is still being used to pay for goods
imports due to poor domestic production.

 

 

US lifts sanctions on Putin ally's firms

The Trump administration has lifted sanctions on three firms linked to
Russian oligarch Oleg Deripaska, an ally of President Vladimir Putin.

 

Curbs on aluminium giant US Rusal, En+ Group and JSC EuroSibEnergo were
lifted after Mr Deripaska ceded control.

 

The oligarch has been linked to the probe into alleged Russian interference
in US elections, and Democrats wanted the sanctions to continue.

 

But the Treasury Department said curbs on oligarch himself remained in
force.

 

The companies were blacklisted last April when the Trump administration
targeted people and businesses it said had profited from a Russian state
engaged in "malign activities" around the world.

 

Russia releases 'sex seminar' model

Oleg Deripaska resigns from Rusal

US slaps sanctions on key Putin allies

That included Russia's alleged meddling in the 2016 US presidential
election, as well as international cyber attacks.

 

But earlier this month, Republicans in the US Senate blocked an effort to
continue the sanctions against Rusal, the world's second largest aluminium
firm and other Deripaska-linked firms.

 

They and the Trump administration argued the curbs could have an impact on
the global aluminium industry. They also said Mr Deripaska had lowered his
stakes in the firms so that he no longer controlled them, a sign the
sanctions were working.

 

There has been pressure on the Trump administration by business groups to
lift the sanctions on these three firms. That's because the announcement of
the sanctions in April led global aluminium prices to briefly spike, as
Rusal is one of the world's biggest suppliers.

 

But when the Treasury Department signalled its intentions in December, US
politicians cried foul. They wanted the Trump administration to wait until a
special investigation into Russia's interference into the 2016 US
Presidential election had finished.

 

Earlier in January, in a significant break, 136 members of President Trump's
Republican Party voted with House Democrats on a measure to oppose the
lifting of sanctions. Although it was a largely symbolic vote - a similar
measure the day before failed to get the necessary 60 votes to pass in the
Senate - the large number of party defections was notable.

 

While the Treasury Department has insisted that the three firms have agreed
to stringent new reporting requirements and that the Russian oligarch at the
centre of the dispute, Oleg Deripaska, has significantly lowered his
ownership stake, the lifting of sanctions less than a year after they were
imposed is sure to once more raise questions about the Trump
administration's commitment to punishing Russia for meddling in the 2016
election.

 

Mueller concerns

In a statement on Sunday, the US Treasury Department said the three
companies had also agreed to "extensive, ongoing auditing" to ensure they
had no ties with the Russian billionaire.

 

And Power company EN+, in which Mr Deripaska owned a controlling stake,
welcomed the news from Washington. The London-listed company's shares
plummeted when sanctions were announced last April have not recovered.

 

The firm's chairman, Lord Barker of Battle said: "This is the first time
independent directors of a London listed Russian company, with the strong
support of minority shareholders, have successfully removed control from a
majority shareholder as a direct response to US sanctions policy."

 

But lawmakers across the political spectrum have said it is inappropriate to
ease sanctions on companies tied to the oligarch while Special Counsel
Robert Mueller investigates whether Mr Trump's 2016 presidential campaign
colluded with Moscow.

 

Mr Deripaska, 51, has been a recurring figure in the investigation and has
ties to President Donald Trump's former campaign chairman Paul Manafort, who
pleaded guilty in September 2018 to attempted witness tampering and
conspiring against the United States.

 

Last week Belarussian model Nastya Rybka was briefly detained by Russian
police, having claimed to have evidence of Russian interference in the
election campaign obtained from Mr Deripaska.

 

Mr Deripaska has denied the allegations and successfully sued her.

 

President Trump denies collusion, and Moscow has denied seeking to influence
the US election on Mr Trump's behalf, despite US intelligence agencies'
finding that it did so.--BBC

 

 

Venezuela crisis: Will the US target oil exports?

In its battle against the rule of Venezuelan President Nicolás Maduro, the
United States has been trying to cripple the government's ability to secure
funds and run the country - with sanctions that target officials, some
sectors of the economy and its official cryptocurrency.

 

But so far it has not yet used what many call "the nuclear option" - a full
oil embargo, targeting the industry that is responsible for 90% of the
government's revenues.

 

Despite the rhetoric between Nicolás Maduro and President Donald Trump,
refineries in the US are still buying Venezuelan petroleum. Venezuela's
state company PDVSA even owns refineries in Texas through a subsidiary
called CITGO.

 

But with the crisis escalating after Washington backed opposition leader
Juan Guaidó's claim to the presidency last week, a new round of sanctions is
expected in the coming days.

 

What's behind Venezuela's political crisis?

Venezuela crisis - in seven charts

On Saturday, US Secretary of State Mike Pompeo failed to secure backing from
the United Nations Security Council against Venezuela, as China and Russia
are close Maduro allies.

 

President Maduro backed down from his demand that US diplomats leave the
country and said both countries now have a 30-day window to negotiate the
new terms of their relationship.

 

Markets are watching now for what the US will do next. Despite its failure
in the Security Council, the Trump administration has support from big
regional players such as Brazil, Argentina and Colombia.

 

If it does finally move against Venezuelan oil, could that be the nail in
the coffin of the country's oil industry, which has been in a crisis of its
own for years? And what effect could that have for the rest of the world?

 

Markets nervous

A boom in US shale production has helped slash crude prices over the past
four years, although they have recovered slightly.

 

But 2019 is shaping up to be a very challenging year for the commodity, and
there is no clear indication on which way prices will move.

 

Oil is never a predictable affair, however, and there are many situations
that could cause prices to spike. Production is very volatile in Nigeria and
Libya. Iran is under a heavy US embargo. Russia and Saudi Arabia are cutting
production.

 

Finally there are fears of a global slowdown in the economy which could see
prices fall due to a drop in demand.

 

The crisis in Venezuela is another scenario watched closely by oil analysts.

 

There is a general sense in markets that Nicolás Maduro will not be removed
from power in the near future and that tensions will keep on rising. Also
most analysts discard the full "nuclear option", as that would have a
devastating impact on the people of Venezuela, instead of just hitting the
government.

 

One of the most likely scenarios discussed is a partial restriction of how
much oil the US can buy from Venezuela.

 

That would hurt consumers in America and in the rest of the world. Prices
would rise as refineries would have to buy their share of oil from more
expensive sources. American refineries that buy from Venezuela would also be
negatively affected.

 

But US restrictions would benefit Saudi Arabia, Mexico and Iraq - countries
that also produce the same variety of heavy crude oil (Canada also produces
heavy crude but it does not have logistic capability to increase its
exports). These countries have been eating into Venezuela's market share for
years.

 

World's largest reserves

Venezuela would be the biggest loser of all, of course.

 

The country has the world's largest proven oil reserves - even bigger than
Saudi Arabia - but it is rapidly running out of money to prospect for crude
and pump it out of the ground.

 

In the late 1990s, Venezuela was producing more than three million barrels
of oil per day. Output today is hovering above the one million mark,
according to experts.

 

Even without any international sanctions Venezuela's oil production will
decline dramatically this year because of the lack of investment.

 

The rate of decline in production has been more intense in recent months.

 

Helima Croft, from RBC Capital Markets, forecasts that output this year will
drop by 300,000 to 500,000 barrels per day without any sanctions.

 

Restrictions from Washington would accelerate the decline. Venezuela would
be able to re-route part of its production to other buying nations, like
China, but it wouldn't be able to pass on all of its excess oil to markets
not aligned with the US.

 

'Fleeing in droves'

Venezuela is still seen as an oil powerhouse, especially because it is a
producer of heavy crude, which is a variety not widely available in the
world.

 

But the severity of its economic crisis may be changing that.

 

"It will require billions in investment to repair the infrastructure and
kick start a recovery. The talented technocrats that once made PDVSA one of
the premier national oil companies continue to flee in droves," she told the
BBC.

 

"Even if a reformist government comes to power, the international community
will have to launch a major reconstruction and rehabilitation effort to get
the country back up on its feet."

 

The IMF now publishes separate indicators for Venezuela in its Latin
American analysis. The economy there has become such an outlier that it
makes no sense to compare it to other countries.

 

This year Venezuela's GDP is expected to reach a new low: the economy will
be half the size of what it was in 2013.

 

Last year the government tried again to use oil to solve its economic woes.
It ended subsidies, raised the price of fuel domestically and ramped up its
campaign to use a cryptocurrency allegedly pegged to barrels of oil.

 

Still it failed to contain inflation, which is thought to have crossed the
million per cent mark, and did not end its shortages of food and medicine.

 

It's hard to imagine life getting any harder for people in Venezuela. Now
with fresh sanctions on the cards, it just may.-BBC

 

 

 

Why China is under pressure to make a trade deal

In Washington this week, the US and China are due to hold their highest
level talks since the two sides struck a temporary truce to their trade war.

 

They have until 1 March to come up with some sort of compromise or tariffs
will be hiked again, and we march back into a trade fight that affects us
all.

 

China watchers tell me Beijing is under increasing pressure to make a deal.

 

Here's why:

 

A slowing economy

The trade war may not have caused China's slowdown, but it is definitely
making things worse.

 

Growth data released last week showed China posted the slowest growth rate
since 1990 but that in itself is not as worrying as other data points,
including that consumer sentiment and retail sales are flatlining or
weakening fast.

 

Small and medium-sized companies in China are feeling the chill with lower
orders and inventories.

 

How worrying is China's slowdown?

A quick guide to the US-China trade war

Just how much pressure the Communist Party is facing because of a weakening
economy was reflected in a rare acknowledgement by President Xi Jinping,
whose legitimacy is based in part in keeping China strong.

 

Losing its factory lustre?

There is also evidence to show that foreign firms are diversifying their
sourcing, production and supply chains away from China, if not pulling out
altogether.

 

This recent survey conducted by QIMA, a leading Asian supply chain auditor,
shows that 30% of more than 100 global businesses are diverting their
sourcing from China to other countries.

 

As many as three-quarters of these companies have started sourcing suppliers
in new countries.

 

If this trend continues then jobs in Chinese factories are at risk - a
recent report looking at China's economy by JP Morgan points to rising
unemployment as a major near-term risks.

 

Social stability is predicated on China's economic stability, and the
Communist Party is well aware that its credibility lies in delivering the
Chinese dream to its people.

 

The Huawei factor

The fate of Huawei also hangs in the balance, both from a business and
diplomatic standpoint.

 

China is big on symbolism and "doesn't believe in coincidences" Einar
Tangen, an advisor on economic affairs for the Chinese government, told me
on the line from Beijing.

 

Mr Tangen pointed to the arrest of Meng Wanzhou, the daughter of Huawei
founder, which took place on the day President Xi and US President Donald
Trump met at the G20 summit and declared the temporary truce between the two
sides, setting the 90 day deadline for talks.

 

What's going on with Huawei?

The Huawei exec trapped in a gilded cage

Another date looms next week, with the latest round of talks taking place on
the day the US has to file the extradition treaty for Ms Meng.

 

"Both of these dates are seen as attempts by the US to use Huawei as
leverage in the trade talks," says Mr Tangen.

 

The US is also reportedly preparing an investigation into Huawei which could
see it banned from buying American chips, a move that crippled China's ZTE
last year.

 

Mr Tangen warns that pushing Beijing will backfire.

 

"The Chinese see this as the US trying to push China down," he says.

 

"This is not about right or wrong. They view this in context of the 100
years of humiliation they suffered at the hands of the West and they don't
want that repeated."

 

American firms want a deal

But the US is also under pressure to make a deal.

 

American firms in China have complained about the impact of Trump's tariffs
on their business but want the US to make a good deal.

 

"This administration has been willing to risk the health of the US economy
with tariffs," says Stephen Kho, international trade partner at law firm
Akin Gump in Washington DC.

 

"So now that we've come this far, businesses want to take advantage of this
moment and walk away from these talks with something significant. They will
want to see China's offer to buy more American goods along with promises of
systemic changes."

 

A solution to the US-China trade war is good for us all.

 

The longer these two superpowers slap tariffs on each other's goods, the
more expensive products will be for us, companies will report lower profits,
and global growth will slow.

 

Both sides are under pressure to make a deal. But this is ultimately, as Mr
Kho also points out, "a game of chicken." Whoever blinks first could also be
the biggest loser.--BBC

 

 

 

Man Booker loses £1.6m hedge fund sponsor amid talk of tension

Britain's most famous literary award is looking for a new sponsor after
hedge fund Man Group said it would end its support after 18 years.

 

The UK-based financial giant said its annual £1.6m backing of this year's
Man Booker Prize would be its last.

 

The link between the hedge fund and the literary world has not always been a
smooth, with novelist Sebastian Faulks last year calling the firm "the
enemy".

 

Man Group said in a statement it had been a privilege to sponsor the prize.

 

But the BBC's arts editor, Will Gompertz, said relations between Man Group
and Booker organisers had been strained for some time, with a company source
suggesting they felt underappreciated.

 

Mr Gompertz said: "The news will come as a disappointment to the Booker
Prize Foundation, which is said to be confident of finding a new sponsor at
a time when the corporate market is far from buoyant."

 

Americans invited

The annual contest for the best book written in English and published in the
UK was first awarded in 1969, with prize money of £5,000.

 

Last year's winner, Anna Burns, for her book Milkman, received £50,000, with
each shortlisted contestant receiving £2,500.

 

In recent years Man Group's link with the award has been uneasy. Originally,
entries were restricted to British, Irish and Commonwealth authors.

 

In 2014, the award was opened to other writers, and since then two out of
five winners have been American.

 

Peter Carey, who twice won the award, was critical of the rule change,
saying the prize could lose its "cultural flavour".

 

And last year, Mr Faulks, whose best-sellers include Birdsong, described the
award as "irritating" and called Man Group "the enemy".

 

He told a podcast that the hedge fund was "not the sort of people who should
be sponsoring literary prizes; they're the kind of people literary prizes
ought to be criticising... I wouldn't feel happy about accepting money from
them".

 

Man Group's chief executive, Luke Ellis, shot back, saying: "His comments...
come at a time when the arts are experiencing an unprecedented withdrawal of
public funding.

 

"Literature and the arts need their champions to step in where public money
has been pulled out."

 

Man Group said it had donated about £25m in support for prizes and
charitable activities during its sponsorship.

 

The Booker Prize Foundation said it is in discussion with a new sponsor, and
is "confident that the new funding will be in place for 2020. In the
meantime the two prizes [the Man Booker and the Man Booker International]
will run as usual this year".

 

The company's statement, which made no mention of any criticism, said it
would spend the sponsorship money on another project, to "promote and
improve diversity and inclusion at the firm and across the financial
services and technology industries more broadly".

 

Helena Kennedy, chair of the Booker Prize Foundation, said: "We would like
to put on record the Foundation's appreciation of Man Group's sponsorship.

 

"However, all good things must come to an end and we look forward to taking
the prizes into the next phase with our new supporter."

 

The relationship between the Man Group and the Booker Prize organisation has
been strained for some time, according to a senior individual connected to
the hedge fund.

 

He said it felt the team behind the annual book award could have
communicated more effectively and been more collaborative given the amount
of money it was investing in the sponsorship.

 

The news will come as a disappointment to the Booker Prize Foundation, which
is said to be confident of finding a new sponsor at a time when the
corporate market is far from buoyant.

 

It has the advantage of a high media profile maintained by the significant
coverage the prize enjoys. But there are problems, too. Sponsors hate
negative publicity, which the prize has attracted recently having broadened
its scope to include all novels published in English, in the UK.

 

There is also the issue of brand recognition, which is very important to a
sponsor but hard to achieve. It is made that bit more difficult in this
instance, as the original sponsor (Booker Group), has become the official
name of the prize.--BBC

 

 

Vogue Business: New title focuses on fashion industry

Conde Nast International will launch a new business-focused fashion title in
an attempt to tap into new sources of revenue.

 

Vogue Business will be a digital-only publication aimed at fashion industry
professionals.

 

Analysts say the move is part of a wider shift in the media sector toward
niche publications.

 

The launch comes as the US media industry goes through another round of job
cuts.

 

Condé Nast International said the new title will cover the "market currents,
cultural movements, trends and technologies that will impact the fashion
industry".

 

Glamour magazine US goes online only

Wintour staying at Vogue 'indefinitely'

Why are people angry at Vogue India's cover?

Vogue Business is the first product to emerge from the firm's "incubator"
which develops new products and services for the company.

 

"We are constantly evaluating how we work across countries and brands and
how we develop our products to expand our global leadership in the fashion,
luxury and lifestyle spaces," Condé Nast International said in a statement.

 

The company also publishes Wired, GQ and Vanity Fair.

 

The new title will be edited by Lauren Indvik and global contributors will
include Suzy Menkes, it said.

 

The company said 7,000 industry professionals were involved in beta-testing
Vogue Business, including senior executives at some of the world's biggest
fashion brands.

 

Shift to niche titles

Mark Mulligan from MIDiA Research said the new title appears to be part of a
move to focus on smaller, high-value audiences rather than large-scale
readerships supported by ads.

 

"Where more mainstream titles struggle for relevance and readership, print
edition niche magazines have proven to have strong, long term appeal with
their respective niches," he said.

 

Many media companies have struggled to generate sufficient advertising
revenues from large digital audiences.

 

American media firms BuzzFeed, HuffPost and Gannett have shed 1,000 jobs
between them this year.---BBC

 

 

 

Mental health: UK could ban social media over suicide images, minister warns

Social media firms could be banned if they fail to remove harmful content,
the health secretary has warned.

 

Speaking on the BBC's Andrew Marr show, Matt Hancock said: "If we think they
need to do things they are refusing to do, then we can and we must
legislate."

 

But he added: "It's not where I'd like to end up."

 

The minister earlier called on social media giants to "purge" material
promoting self-harm and suicide in the wake of links to a teenager's
suicide.

 

Molly Russell, 14, took her own life in 2017 after viewing disturbing
content about suicide on social media.

 

Speaking to the BBC, her father said he believed Instagram "helped kill my
daughter".

 

Mr Russell also criticised the online scrapbook Pinterest, telling the
Sunday Times: "Pinterest has a huge amount to answer for."

 

Instagram responded by saying it works with expert groups who advise them on
the "complex and nuanced" issues of mental health and self-harm.

 

Based on their advice that sharing stories and connecting with others could
be helpful for recovery, Instagram said, they "don't remove certain
content".

 

"Instead (we) offer people looking at, or posting it, support messaging that
directs them to groups that can help."

 

But Instagram added it is undertaking a full review of its enforcement
policies and technologies.

 

A Pinterest spokesman said: "We have a policy against harmful content and
take numerous proactive measures to try to prevent it from coming and
spreading on our platform.

 

"But we know we can do more, which is why we've been working to update our
self-harm policy and enforcement guidelines over the last few months."

 

Facebook, which owns Instagram, said earlier it was "deeply sorry".

 

The internet giant said graphic content which sensationalises self-harm and
suicide "has no place on our platform".

 

Almost half of UK internet users 'harmed' online

University switches off social media

Reality TV harms youngsters' body image

Papyrus, a charity that works to prevent youth suicide, said it has been
contacted by around 30 families in the past week who believe social media
had a part to play in their children's suicides.

 

"We've had a spike in calls to our UK helpline since the BBC first reported
this six days ago, all saying the same thing," said a spokeswoman for the
charity.

 

Mr Hancock said he was "horrified" to learn of Molly's death and feels
"desperately concerned to ensure young people are protected".

 

Media captionMatt Hancock: We will and we must act if we have to

In a letter sent to Twitter, Snapchat, Pinterest, Apple, Google and Facebook
(which owns Instagram), the minister "welcomed" steps already taken by firms
but said "more action is urgently needed".

 

He wrote: "It is appalling how easy it still is to access this content
online and I am in no doubt about the harm this material can cause,
especially for young people.

 

"It is time for internet and social media providers to step up and purge
this content once and for all."

 

He added that the government is developing a white paper addressing "online
harms", and said it will look at content on suicide and self-harm.

 

Mr Hancock explained: "Lots of parents feel powerless in the face of social
media. But we are not powerless. Both government and social media providers
have a duty to act.

 

"I want to make the UK the safest place to be online for everyone - and
ensure that no other family has to endure the torment that Molly's parents
have had to go through."

 

Molly was found dead in her bedroom in November 2017 after showing "no
obvious signs" of severe mental health issues.

 

Her family later found she had been viewing material on social media linked
to anxiety, depression, self-harm and suicide.

 

Mr Russell told the BBC: "Some of that content is shocking in that it
encourages self harm, it links self-harm to suicide and I have no doubt that
Instagram helped kill my daughter."

 

Solicitor Merry Varney, who represents the Russell family, said Molly's case
"and the examples of how algorithms push negative material" show a need to
investigate online platforms, and how they could be "contributing to
suicides and self-harm".--BBC

 

 

 

Tesco warns of 'changes' amid reports of jobs cuts

Tesco is "finalising" job cut plans but has declined to comment further.

 

Earlier, the Mail on Sunday reported that the supermarket could cut 15,000
jobs and close some fresh food counters and bakeries.

 

In an internal company email seen by the BBC, its chief operating office
said plans were "still being finalised".

 

He also acknowledged that "any changes" would be hard for the people
affected and said more information would follow.

 

More than 10,000 jobs have been cut at Tesco since the current chief
executive, Dave Lewis, took over in 2014.

 

Supermarkets battle over price cuts

Tesco shares slump after profits disappoint

Christmas retail winners and losers

The UK's biggest grocer is in the midst of trying to save £1.5bn as the
competition between supermarkets intensifies.

 

According to the Mail on Sunday, the grocer triggered a review of jobs after
a particularly tough Christmas trading period.

 

The paper said the planned cuts would affect the majority of Tesco's 732
larger stores and put some of its meat, fish and delicatessen counters at
risk.

 

It also said Tesco was also considering an overhaul of in-store bakeries -
using frozen instead of fresh dough - and replacing staff canteens in some
stores with vending machines.

 

Details of the cuts are likely to be announced this week, it said.

 

'Unsettling for everyone'

Tesco declined to comment on the claims but said it was "always looking at
ways to run our business more simply and efficiently".

 

However, in a memo to staff, chief operating officer Tony Hogett
acknowledged the media speculation.

 

"We are committed to tell our colleagues first of any changes we make as we
continue to refresh and simplify the way we serve customers in our stores,"
he told employees.

 

"These changes are still being finalised, but as a result of this leak and
speculation, we will bring forward our communications to give more
information as soon as possible.

 

"We recognise that any changes will be hard for impacted colleagues, and
unsettling for everyone. Our priority is to support our colleagues
throughout."

 

The main union representing Tesco staff, Usdaw, called the media speculation
"distressing" for staff.

 

National Officer Pauline Foulkes said: "It is appalling that they should
hear about the future of their jobs in this way. Usdaw is seeking an urgent
meeting with the company to clarify the situation, to examine the details of
what changes they are proposing and what this means for staff.

 

"Our priority will be to press Tesco to confirm the details of their
proposed changes to stop any further speculation."

 

Unite, which represents 800 workers at four Tesco distribution centres,
called the reports concerning and said it too would be seeking clarification
from Tesco.-BBC

 

 

US shutdown: Four reasons why Trump blinked

The seriousness of the shutdown was starting to show.

President Donald Trump's decision to endorse a deal to reopen the federal
government for three weeks on Friday came amid mounting pressure to end the
impasse.

 

Here are four reasons from the business world why the White House blinked.

 

1. The travel industry was stressed.

Delays at major airports on Friday brought to a head issues that had been
affecting airports for weeks.

 

The issues were blamed on staff shortages, as air traffic controllers and
screening officers - who have been working without pay since the start of
the shutdown in December - failed to report for duty.

 

Among Transportation Security Administration officers, unexpected absences
had more than doubled from a year ago, to more than 7%, with many citing
"financial limitations", according to the agency.

 

Meanwhile, airline executives had warned that a fall in government business,
as well as wider concerns about travel, were affecting bookings.

 

Southwest, for example, estimated that the shutdown cost $10m-$15m
(£7.6m-£11.4m) in January revenue. It also said it was forced to postpone a
new service to Hawaii.

 

2. Washington was reeling.

The 800,000 federal workers affected by the shutdown might have been able to
absorb one missed pay cheque.

 

But a second one starts to hurt - especially in a country where an estimated
40% of adults don't have funds to cover an unexpected $400 expense.

 

In the Washington region, where an estimated one in six workers was
affected, the shutdown could have shaved 2.5% off the region's quarterly
economic growth if it lasted through March, according to Frederick Treyz,
chief economist for Regional Economic Models Inc.

 

What is a government shutdown?

#ShutdownStories: The impact of the government shutdown

That's in an area that expanded 2.1% in 2017.

 

Despite the pain, the administration was widely criticised for being
unsympathetic and the issue started to hurt the president's approval
ratings.

 

Widely criticised comments by Commerce Department Secretary Wilbur Ross on
Thursday, who said cash-strapped households should take out loans, didn't
help.

 

3. The Fed and others were 'flying blind'.

Federal Reserve Chair Jerome "Jay" Powell has warned about the impact of the
shutdown

The shutdown coincided with a critical time for the economy, as conflicting
economic signals aggravate debates about how much higher the Federal Reserve
should raise interest rates this year.

 

Mr Trump has repeatedly criticised the Fed, warning against a misstep.

 

But wider fears of a policy error were growing, as the impasse halted the
release of closely watched statistics, including gross domestic product
(GDP), retail sales and housing starts.

 

"The US economy is flying blind," Robert Shapiro, the chairman of Sonecon
LLC, wrote for Brookings Institution this week.

 

"The fact that reliable measures of recent GDP and its components are
unavailable can only generate more economic uncertainty as well as wrong
business decisions."

 

Meanwhile, the data coming in suggested the shutdown wasn't helping.

 

This month, the University of Michigan's survey of consumer sentiment fell
to its lowest point since US President Donald Trump was elected, due in part
to the shutdown.

 

A top White House adviser said this week the shutdown could lead to zero
economic growth this quarter.

 

And economists had warned that a prolonged stand-off could send the US into
recession.

 

4. More pain was about to appear.

Cutbacks at government agencies have left breweries and other firms waiting
for permits

The Trump administration worked hard to shield the wider public from the
effects of the shutdown, recalling staff to process items such as tax
returns.

 

But as the stand-off continued, its impact was becoming harder to ignore.

 

The federal court system warned it would exhaust its funding this month.
Food subsidies for low-income families were expected to run out in February.

 

A growing number of businesses were in limbo, as government cutbacks halted
fisheries permits, approvals for beer and wine labels, and listings on the
stock exchange.

 

And contractors that provided services to affected agencies were losing more
than $200m a day due to the shutdown, according to estimates by Bloomberg
News.

 

Greg Fitzgerald is president of the Virginia-based contractor Information
Technology Coalition.

 

At a Chamber of Commerce event on Friday, he said his firm has yet to be
paid for government work it completed in December and he had to place 200 of
the firm's 350 staff on leave.

 

"It's real," he said. "There are families out there that are going to make
significant sacrifices for something that wasn't their fault."--BBC

 

 

 

Facebook to integrate WhatsApp, Instagram and Messenger

Facebook plans to integrate its messaging services on Instagram, WhatsApp
and Facebook Messenger.

 

While all three will remain stand-alone apps, at a much deeper level they
will be linked so messages can travel between the different services.

 

Facebook told the BBC it was at the start of a "long process".

 

The plan was first reported in the New York Times and is believed to be a
personal project of Facebook founder Mark Zuckerberg.

 

Once complete, the merger would mean that a Facebook user could communicate
directly with someone who only has a WhatsApp account. This is currently
impossible as the applications have no common core.

 

The work to merge the three elements has already begun, reported the NYT,
and is expected to be completed by the end of 2019 or early next year.

 

Facebook probably didn't want to talk about this in the middle of a privacy
scandal, but its hand was forced by insiders talking to the New York Times.

 

Until now, WhatsApp, Instagram and Messenger have been run as separate and
competing products.

 

Integrating the messaging parts might simplify Facebook's work. It wouldn't
need to develop competing versions of new features, such as Stories, which
all three apps have added with inconsistent results.

 

Cross-platform messaging may also lead the way for businesses on one
platform to message potential customers on another.

 

And it might make it easier for Facebook to share data across the three
platforms, to help its targeted advertising efforts.

 

But bigger still: it makes Facebook's suite of apps a much tighter,
interwoven collection of services. That could make the key parts of
Facebook's empire more difficult to break up and spin off, if governments
and regulators decide that is necessary.

 

Shared data

Mr Zuckerberg is reportedly pushing the integration plan to make its trinity
of services more useful and increase the amount of time people spend on
them.

 

By effectively joining all its users into one massive group Facebook could
compete more effectively with Google's messaging services and Apple's
iMessage, suggested Makena Kelly on tech news site The Verge.

 

"We want to build the best messaging experiences we can; and people want
messaging to be fast, simple, reliable and private," said Facebook in a
statement.

 

"We're working on making more of our messaging products end-to-end encrypted
and considering ways to make it easier to reach friends and family across
networks," it added.

 

The statement said there was a lot of "discussion and debate" about how the
system would eventually work.

 

Facebook ignored kids’ spending problems

Facebook fined £500,000 for data scandal

Will Facebook be fined after hack attack?

Linking the three systems marks a significant change at Facebook as before
now it has let Instagram and WhatsApp operate as largely independent
companies.

 

The NYT claimed that Mr Zuckerberg's championing of the plan to connect the
messaging system had caused "internal strife". It was part of the reason
that the founders of both Instagram and WhatsApp left last year.

 

The decision comes as Facebook faces repeated investigations and criticisms
over the way it has handled and safeguarded user data.

 

Comprehensively linking user data at a fundamental level may prompt
regulators to take another look at its data handling practices.

 

The UK's Information Commissioner has already conducted investigations into
how much data is shared between WhatsApp and Facebook.--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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