Major International Business Headlines Brief::: 09 July 2019

[Bulls n' Bears]

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Major International Business Headlines Brief::: 09 July 2019

 


 

 


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*  South Sudan 2019/20 spending to more than double - finmin

*  South Africa's rand steady as Fed cut bets fade

*  Airtel Africa to list in Nigeria on Tuesday - bourse

*  Tunisia's tourism revenues jump 42.5% in the first half of 2019

*  Abundant rains offer good prospects for main Ivory Coast cocoa crop: farmers

*  South Africa's Implats to swing back to annual profit

*  Economic "game changer"? African leaders launch free-trade zone

*  Bankers sent home as Deutsche starts slashing jobs

*  Instagram now asks bullies: 'Are you sure?'

*  British Airways faces record £183m fine for data breach

*  Turkey's Erdogan fires central bank chief Murat Cetinkaya

*  How social media could ruin your business

*  Jaguar Land Rover announces electric car investment

*  Stagnant productivity 'costs workers £5,000 a year'

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Sudan 2019/20 spending to more than double - finmin

JUBA (Reuters) - South Sudan’s finance minister unveiled dramatically higher spending for the 2019/20 fiscal year to be partly funded by increased oil revenues, following criticism from the IMF for deep cuts in prior years which paralysed public services.

 

It was Finance Minister Salvatore Garang Mabiordit’s second attempt to present the draft budget following a row three weeks ago when lawmakers stormed out of the meeting over non-payment of salaries to civil servants and soldiers.

 

In May the International Monetary Fund said South Sudan’s fiscal stance that relied on huge spending cuts was unsustainable and had paralysed government services and led to accumulation of arrears, including on wages.

 

On Monday, Mabiordit said spending was expected to rise 155% in 2019/20 compared with the previous year’s low base, with a bulk of the funding expected to come from increased oil revenues and external borrowing.

 

He told parliament the 2019/20 budget will increase to 208.16 billion South Sudanese pounds ($1.6 billion), up from 2018/19’s approved SSP 81.6 billion ($620 million), with a deficit of SSP 77 billion ($590 million).

 

“We propose to manage the budget deficit through increase in oil production as well as positive difference between the bench mark price and market price of crude oil. We will also explore other external financing from the international market on favourable terms,” he told lawmakers.

 

FUNDING PEACE

In May South Sudan’s ruling and opposition parties agreed to give themselves six more months to form a unity government as part of the September peace deal that largely ended years of unrest in a brutal civil war [nL5N22F5VB].

 

South Sudan’s only major economic resource is oil, but fighting forced operators to shut down many fields. Output has rebounded to 180,000 barrels per day, but still falls short of its pre-war level of 245,000 barrels per day in 2013.

 

The IMF forecasts South Sudan’s GDP to grow 8.1% in 2019/20 and 6.6% in 2020/2021 from 3.4% in 2018/19.

 

In March, IMF said South Sudan should stop selling expensive and opaque oil advances, because loan resettlements were hindering spending vital for the implementation of a peace deal.

 

Mabiordit said the budget had set aside SSP 10 billion for what he said was the implementation and consolidation of peace, but gave no further details.

 

It was still unclear how much funding donors would provide for budgetary support, he said.

 

“We have not received information of any grants from donors, which can report to the budget. As you know the donors shifted most of the support to humanitarian and relief efforts,” he said.

 

Inflation has been in the triple digits at various stages during the conflict, with hyperinflation persisting for several years due in part to the country’s depreciating currency.

 

Mabiordit said inflation was running at 93% in December.

 

“These improvements are largely due to reduction in borrowing from the central bank,” he said.

 

The budget is expected to be approved within 45 days.

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa's rand steady as Fed cut bets fade

JOHANNESBURG (Reuters) - South Africa’s rand steadied against a firmer dollar in afternoon trade on Monday, after last week’s strong U.S. jobs data lowered expectations of a sharp Federal Reserve interest rate cut.

 

Stocks closed slightly higher.

 

At 1505 GMT the rand was trading at 14.1525 per dollar, not far off its close of 14.1800 on Friday.

 

“With the economic calendar in South Africa relatively light this week, the rand is positioned to be influenced by outside forces in the form of trade developments, Fed rate cut speculation and the dollar’s valuation,” Lukman Otunuga, research analyst at FXTM, said in a note.

 

“Should speculation of a US interest rate cut diminish further on improving fundamentals in the United States, Dollar bulls could make an uninvited return - ultimately punishing the Rand and other emerging market currencies.”

 

South African-focused investors are this week waiting for mining and manufacturing data for the month of May for clues on the health of the economy after GDP contracted in the first quarter.

 

On the stock market, the Top-40 index closed 0.21% higher while the broader all-share was up 0.25%.

 

Shares in Impala Platinum rose more than 3% after the mining firm said it expected to swing back to annual profit, thanks to an improved platinum metals’ basket price and higher sales volumes.

 

Shares in retailer Steinhoff fell 3.10% after it said its chief financial officer would step down.

 

In fixed income, the yield on the benchmark government bond due in 2026 dipped by 5 basis points to 8.12%.

 

 

 

Airtel Africa to list in Nigeria on Tuesday - bourse

LAGOS (Reuters) - Airtel Africa shares will be listed on the Nigerian Stock Exchange on Tuesday, the bourse said, after it postponed the $4.4 billion listing last week.

 

The secondary listing had been planned for July 5. However, the stock exchange postponed it to ensure the telecoms company met its requirements.

 

India’s Bharti Airtel two weeks ago offered shares in its African unit via a London IPO and said it would dual list in Nigeria, its biggest market in Africa.

 

 

 

 

Tunisia's tourism revenues jump 42.5% in the first half of 2019

(Reuters) - Tunisia’s tourism revenues soared 42.5% in the first half of 2019 to $692 million compared to the same period last year, official figures showed on Monday.

 

The tourism industry accounts for 8% of Tunisia’s gross domestic product.

 

 

 

Abundant rains offer good prospects for main Ivory Coast cocoa crop: farmers

ABIDJAN (Reuters) - Above-average rainfall mixed with sunshine in Ivory Coast’s cocoa-growing regions last week could boost the forthcoming October-to-March main crop, farmers said on Monday.

 

The April-to-September mid-crop in Ivory Coast, the world’s top cocoa producer, is tailing off and farmers said they were closely watching the development of the next main crop as no big pods were seen on trees yet.

 

While farmers said they were happy with weather conditions - which have allowed many flowers to turn into cherelles - more moisture and sun will be needed throughout the month to boost the crop.

 

“It is not over yet. In the coming weeks, we will need good rains and sunshine to avoid insects and diseases on the plantations,” said Eugene Gnaka, who farms near the western region of Soubre.

 

Data collected by Reuters showed that rainfall in Soubre, which includes the regions of Sassandra and San Pedro, was 55.5 millimetres (mm) last week, 18.9 mm above the five-year average.

 

Farmers reported good flowering and a proliferation of cherelles on trees in the southern region of Agboville where rainfall was 43.9 mm last week, 4.6 mm above average.

 

In the southern region of Divo, rainfall was at 50.1 mm last week, 21.9 mm above average, and in the central region of Yamoussoukro, rainfall was at 33.3 mm last week, 10.1 mm above average.

 

In the eastern region of Abengourou, known for the good quality of its beans, farmers said a proliferation of cherelles could pave the way for an early harvest compared with last season.

 

“There are a lot more pods compared to the same time last year. The harvest of the main crop could be early if all goes well,” said Anani Koffi, who farms near Abengourou.

 

Data collected by Reuters showed that rainfall in Abengourou, which includes the region of Aboisso, was 63.8 mm last week, 24.4 mm above average.

 

In the centre-western region of Daloa and the central area of Bongouanou, data collected by Reuters showed rains were below average but farmers remained optimistic.

 

“The soil is humid and flowers and cherelles are doing well,” said Raphael Kouame, who farms near Daloa, a region that accounts for a quarter of Ivory Coast’s national output.

 

Data showed that rainfall in Daloa, including the region of Bouafle, was 18.8 mm last week, 5.5 mm below average.

 

Rainfall in Bongouanou was 23.2 mm last week, 1.7 mm below average.

 

Average temperatures ranged between 24.12 and 27.38 degrees Celsius.

 

 

 

South Africa's Implats to swing back to annual profit

JOHANNESBURG (Reuters) - South Africa’s Impala Platinum (Implats) said on Monday it expects to swing back to annual profit, thanks to an improved platinum metals’ basket price and higher sales volumes.

 

Improved operational performance will also help headline earnings per share to bounce back in the year ended June 30 from a loss of 171 cents in the previous year. The platinum miner did not disclose the expected range for HEPS.

 

HEPS is the main profit measure in South Africa, which strips out certain one-off items.

 

Implats added that it expected refined platinum production for the period to increase by 4% to 1.5 million ounces from 1.4 million ounces, primarily due to improved performance from Impala Rustenburg and a stock release of platinum compared to a build-up in the comparative period.

 

This is expected to boost platinum sales volumes by 12% to 1.5 million ounces.

 

At 0843 GMT shares in Implats were up 2.8% at 74.41 rand compared with a 1.6% increase in the Johannesburg Stock Exchange mining index.

 

Implats will release its annual financial results on Sept. 5.

 

 

 

Economic "game changer"? African leaders launch free-trade zone

NIAMEY (Reuters) - African leaders met on Sunday to launch a continental free-trade zone that if successful would unite 1.3 billion people, create a $3.4 trillion economic bloc and usher in a new era of development.

 

After four years of talks, an agreement to form a 55-nation trade bloc was reached in March, paving the way for Sunday’s African Union summit in Niger where attendees will unveil which nation will host the trade zone’s headquarters, when trading will start and discuss how exactly it will work.

 

It is hoped that the African Continental Free Trade Area (AfCFTA) - the largest since the creation of the World Trade Organization in 1994 - will help unlock Africa’s long-stymied economic potential by boosting intra-regional trade, strengthening supply chains and spreading expertise.

 

“The eyes of the world are turned to Africa,” Egyptian President and African Union Chairman Abdel Fattah al-Sisi said at the summit’s opening ceremony.

 

AfCFTA “will reinforce our negotiating position on the international stage. It will represent an important step.”

 

Africa has much catching up to do: its intra-regional trade accounted for just 17% of exports in 2017 versus 59% in Asia and 69% in Europe, and Africa has missed out on the economic booms that other trade blocs have experienced in recent decades.

 

    Economists say significant challenges remain, including poor road and rail links, large areas of unrest, excessive border bureaucracy and petty corruption that have held back growth and integration.

 

    Members have committed to eliminate tariffs on most goods, which will increase trade in the region by 15-25% in the medium term, but this would double if these other issues were dealt with, according to International Monetary Fund (IMF) estimates.

 

    The IMF in a May report described a free-trade zone as a potential “economic game changer” of the kind that has boosted growth in Europe and North America, but it added a note of caution.

 

    “Reducing tariffs alone is not sufficient,” it said.

 

    DIVERGENT INTERESTS

    Africa already has an alphabet soup of competing and overlapping trade zones - ECOWAS in the west, EAC in the east, SADC in the south and COMESA in the east and south.

 

    But only the EAC, driven mainly by Kenya, has made significant progress towards a common market in goods and services.

 

These regional economic communities (REC) will continue to trade among themselves as they do now. The role of AfCFTA is to liberalise trade among those member states that are not currently in the same REC, said Trudi Hartzenberg, director at Tralac, a South Africa-based trade law organisation.

 

    The zone’s potential clout received a boost on Tuesday when Nigeria, the largest economy in Africa, agreed to sign the agreement at the summit. Benin has also since agreed to join. Fifty-four of the continent’s 55 states have signed up, but only 25 have ratified.

 

    One obstacle in negotiations will be the countries’ conflicting motives.

 

    For undiversified but relatively developed economies like Nigeria, which relies heavily on oil exports, the benefits of membership will likely be smaller than others, said John Ashbourne, senior emerging markets economist at Capital Economics.

 

    Nigerian officials have expressed concern that the country could be flooded with low-priced goods, confounding efforts to encourage moribund local manufacturing and expand farming.

 

    In contrast, South Africa’s manufacturers, which are among the most developed in Africa, could quickly expand outside their usual export markets and into West and North Africa, giving them an advantage over manufacturers from other countries, Ashbourne said.

 

    The presidents of both countries are attending the summit.

 

The vast difference in countries’ economic heft is another complicating factor in negotiations. Nigeria, Egypt and South Africa account for over 50% of Africa’s cumulative GDP, while its six sovereign island nations represent about 1%.

 

 

 

    “It will be important to address those disparities to ensure that special and differential treatments for the least developed countries are adopted and successfully implemented,” said Landry Signe, a fellow at the Brookings Institution’s Africa Growth Initiative.

 

Regulations governing rules of origin, removal of non-tariff barriers and the development of a payments and settlements system are expected to be unveiled at the summit.

 

 

 

Bankers sent home as Deutsche starts slashing jobs

Deutsche Bank has made the first of the 18,000 job cuts announced on Sunday as part of a radical reorganisation.

 

Staff working in share trading in London, New York and Tokyo were told that their jobs were going.

 

In London, some staff stayed away from work after being told their passes would stop working at 11:00.

 

A spokesperson said the aim of the changes, which will shrink its investment banking business, was to make the bank "leaner and stronger".

 

Deutsche Bank is yet to specify exactly where the jobs will be lost.

 

But it will pull out of activities related to trading shares, much of which takes place in London and New York.

 

German banking giants abandon merger talks

Deutsche Bank raided over money laundering

With almost 8,000 staff, Deutsche Bank is one of the biggest employers in the City of London.

 

Outside the bank's London HQ staff have been seen speaking on their phones - with some visibly upset - just hours after arriving at work.

 

Some workers have been sent home while others are still waiting to find out whether their jobs are at risk.

 

'It's not an easy market right now'

BBC business correspondent Andy Verity reports from Deutsche Bank's London HQ

 

In a bar near the huge, banana-shaped building that is Deutsche Bank's London headquarters, some of the bank's employees are having a drink.

 

Some work for the share trading businesses that Deutsche Bank is now shutting down.

 

They told me that around 800 people in London work for those operations.

 

"It's not an easy market right now. People aren't falling over themselves to hire more traders," one glum-looking former employee told me.

 

Aside from those who buy and sell shares or the derivatives based on them, staff at Deutsche still don't know if they'll be casualties of the cull

 

"They haven't told us," one told me. "It's all done on a need-to-know basis."

 

Don't you need to know?

 

"We'd like to know. But if we're not being told, hopefully that means we're ok."

 

'Painful but unavoidable'

"We will retain a significant presence here and remain a close partner to our UK clients and to international institutions that want to access the London market," Deutsche Bank said in a statement on Monday.

 

In a conference call, Deutsche Bank chief executive Christian Sewing declined to give regional breakdowns of the job cuts, but confirmed that the process of informing those affected had already begun.

 

He described the job losses as "painful but unavoidable to ensure Deutsche Bank's long-term success".

 

Shares in Deutsche Bank were down more than 5% by mid-afternoon as investors reacted to the shake-up.

 

What is the bank doing?

Deutsche Bank said it would cut its global workforce to 74,000 by 2022, part of a reorganisation that will cost the company €7.4bn ($8.3bn; £6.6bn) over the next three years.

 

It will also report a second-quarter loss of €2.8bn, partly due to the costs of the shake-up.

 

A Deutsche Bank spokesperson said: "We have decided to focus our resources on businesses where clients need us most.

 

"We are setting up a dedicated corporate bank specialising in the financing and treasury products the world's companies need to support trade and investment around the globe.

 

"Deutsche Bank will remain an international bank. That's what our clients need."

 

What do the staff who are losing their jobs actually do?

Basically, they buy and sell shares on behalf of clients and companies.

 

Transactions may include buybacks, when a company wants to repurchase its own stock as a way of returning money to shareholders, or rights issues, when a company needs to raise cash on the capital markets.

 

This sector of banking, the equities business, is one area in which Deutsche Bank has decided it is just not competitive enough.

 

Mr Sewing told journalists on Monday that the aim was to create "a bank that competes to win".

 

He added: "If we can't compete with the best, we won't be in the game."

 

What went wrong?

The reorganisation of the business follows the failure of merger talks with rival Commerzbank in April.

 

The German government had supported the tie-up, hoping it would create a national champion in the banking industry.

 

However, both banks concluded that the deal was too risky, fearing the costs of combining might have outweighed the benefits.

 

Deutsche Bank has been struggling for years with the decline of its investment bank and has made several attempts to revamp its business.

 

The latest plan, the most ambitious so far, has already prompted the resignation of one top executive.

 

On Friday, the bank announced that its head of investment banking, Garth Ritchie, was leaving.

 

How many jobs are being lost in the UK?

Certainly hundreds, possibly thousands. The businesses Deutsche Bank is exiting or cutting back are predominantly based in New York and London so it seems very likely the axe will fall harder in the UK and US than in Germany.

 

The bank is cutting 20% of its global workforce and the bank has nearly 8,000 people in the UK. That arithmetic gets you into the thousands quite easily.

 

Does it mean we are in the foothills of another financial crisis?

 

No. This is a problem specific to Deutsche Bank, which expanded rapidly in the 1990s and 2000s.

 

When the financial crisis hit it was slow to respond by cutting its business back to a more sustainable size.

 

It is paying the price for that now--BBC

 

 

 

Instagram now asks bullies: 'Are you sure?'

Instagram believes its new anti-bullying tool, which prompts users to pause and consider what they are saying, could help curb abuse on the platform.

 

It will also soon offer the targets of bullying the ability to restrict interactions with users who are causing them distress.

 

Instagram has been under pressure to deal with its bullying problem after high profile cases, including the suicide of British teenager Molly Russell.

 

In a blog post, the firm’s chief executive Adam Mosseri said his firm “could do more” on the issue.

 

"We can do more to prevent bullying from happening on Instagram, and we can do more to empower the targets of bullying to stand up for themselves,” Mr Mosseri wrote.

 

"These tools are grounded in a deep understanding of how people bully each other and how they respond to bullying on Instagram, but they’re only two steps on a longer path.”

 

‘Rethink’

 

Instagram said it was using artificial intelligence to recognize when text resembles the kind of posts that are most often reported as inappropriate by users.

 

In one example, a person types “you are so ugly and stupid”, only to be interrupted with a notice saying: “Are you sure you want to post this? Learn more”.

 

If the user taps “learn more”, a notice informs: “We are asking people to rethink comments that seem similar to others the have been reported.”

 

 

The user can ignore the message and post anyway, but Instagram said in early tests that "we have found that it encourages some people to undo their comment and share something less hurtful once they have had a chance to reflect.”

 

The tool is being rolled out to English-speaking users at first, with plans to eventually make it available globally, Instagram told the BBC.

 

Restricted

 

The company said it will soon roll out an additional tool, called Restrict, designed to help teens filter abusive comments without resorting to blocking others - a blunt move that could have repercussions in the real world.

 

"We’ve heard from young people in our community that they’re reluctant to block, unfollow, or report their bully because it could escalate the situation, especially if they interact with their bully in real life,” Mr Mosseri said.

 

"Some of these actions also make it difficult for a target to keep track of their bully’s behaviour.”

 

Once a user has been restricted, their comments will appear only to themselves. Crucially, a restricted person will not know they have been restricted.

 

"You can choose to make a restricted person’s comments visible to others by approving their comments,” Mr Mosseri explained.

 

"Restricted people won’t be able to see when you’re active on Instagram or when you’ve read their direct messages.”

 

‘No excuse’

 

Bullying on social media, particularly Instagram, was brought into tragic focus earlier this year.

 

The father of 14-year-old Molly Russell, who took her own life, said distressing content about depression and suicide on Instagram were partly responsible for his daughter's death.

 

In April, the British government published its Online Harms white paper, a policy proposal that sought tighter controls on technology firms. It suggests the creation of an independent regulator to direct ways in which firms should deal with all manner of abuse, including bullying.

 

The paper was met with a mixed response, with some questioning its efficacy, and fears it could be overreaching.

 

Instagram chief executive Adam Mosseri says his firm can 'do more' to prevent online bullying

At Facebook’s recent developer conference, Mr Mosseri said a key focus of Instagram - which Facebook owns - is to tackle the bullying issue.

 

“It’s really encouraging to see that the new feature has been rolled out,” said Alex Holmes, deputy chief executive of the Anti-Bullying at the Diana Award, and a long-time anti-bullying advocate.

 

The group has received some funding from Facebook for real-world anti-bullying initiatives in schools. Mr Holmes told the BBC he felt social media firms could still do more to actively teach users about decent behaviour.

 

"If you are under 18, you should have to go through awareness building when you sign up,” he said.

 

"I think it would be a pretty simple thing, for the first five minutes, to go through. Platforms should be able to make the issue of safety more appealing, more engaging."--BBC

 

 

 

British Airways faces record £183m fine for data breach

British Airways is facing a record fine of £183m for last year's breach of its security systems.

 

The airline, owned by IAG, says it is "surprised and disappointed" by the penalty from the Information Commissioner's Office (ICO).

 

At the time, BA said hackers had carried out a "sophisticated, malicious criminal attack" on its website.

 

The ICO said it was the biggest penalty it had handed out and the first to be made public under new rules.

 

What happened?

The ICO said the incident took place after users of British Airways' website were diverted to a fraudulent site. Through this false site, details of about 500,000 customers were harvested by the attackers, the ICO said.

 

Information Commissioner Elizabeth Denham said: "People's personal data is just that - personal. When an organisation fails to protect it from loss, damage or theft, it is more than an inconvenience.

 

"That's why the law is clear - when you are entrusted with personal data, you must look after it. Those that don't will face scrutiny from my office to check they have taken appropriate steps to protect fundamental privacy rights."

 

The incident was first disclosed on 6 September 2018 and BA had initially said approximately 380,000 transactions were affected, but the stolen data did not include travel or passport details.

 

British Airways breach: How did hackers get in?

BA investigation into website hack reveals more victims

 

The ICO said the incident was believed to have begun in June 2018.

 

The watchdog said a variety of information was "compromised" by poor security arrangements at the company, including log in, payment card, and travel booking details as well name and address information.

 

BA initially said information involved included names, email addresses, credit card information such as credit card numbers, expiry dates and the three-digit CVV code found on the back of credit cards.

 

The watchdog said BA had co-operated with its investigation and made improvements to its security arrangements.

 

What are the new rules?

The General Data Protection Regulation (GDPR) came into force last year and was the biggest shake-up to data privacy in 20 years.

 

The penalty imposed on BA is the first one to be made public since those rules were introduced, which make it mandatory to report data security breaches to the information commissioner.

 

It also increased the maximum penalty to 4% of turnover. The BA penalty amounts to 1.5% of its worldwide turnover in 2017, less than the possible maximum.

 

Until now, the biggest penalty was £500,000, imposed on Facebook for its role in the Cambridge Analytica data scandal. That was the maximum allowed under the old data protection rules that applied before GDPR.

 

'Sending a shiver down the spine'

I imagine that many people's first reaction to the £183m fine that the Information Commissioner plans to levy on British Airways will have mirrored mine - surely the decimal point must be in the wrong place?

 

After all the proposed penalty is roughly 367 times as high as the previous record fine, the £500,000 imposed on Facebook over the Cambridge Analytica scandal.

 

The difference, of course, is that the law has changed between the two incidents, with the arrival of a new law mirroring Europe's GDPR. This allows fines of up to 4% of annual turnover.

 

Now you might have expected the data regulator to be somewhat cautious at first in wielding this powerful new weapon but today's news will send a shiver down the spine of anyone responsible for cybersecurity at a major corporation.

 

The message is clear - if you don't treat your customers' data with the utmost care expect severe punishment when things go wrong.

 

British Airways certainly appears to be stunned. But then again it could have been worse: the full 4% of turnover would have meant a fine approaching £500m.

 

What happens next?

BA has 28 days to appeal. Willie Walsh, chief executive of IAG, said British Airways would be making representations to the ICO.

 

"We intend to take all appropriate steps to defend the airline's position vigorously, including making any necessary appeals," he said.

 

Alex Cruz, British Airways' chairman and chief executive, said the airline was "surprised and disappointed" in the ICO's initial finding.

 

"British Airways responded quickly to a criminal act to steal customers' data. We have found no evidence of fraud/fraudulent activity on accounts linked to the theft.

 

"We apologise to our customers for any inconvenience this event caused."

 

David Champion believes that the BA data breach probably led to his credit card being used fraudulently.

 

He says he was notified that his card had been used in an attempt to buy items at Harrods by phone while he was in Malaysia.

 

"BA are claiming there were no fraudulent transactions from the leak. My card details, I don't think, weren't exposed anywhere else," he told the BBC.

 

The transaction was rejected and Mr Champion was not left out of pocket.

 

"BA contacted me in August/September about the breach, that addresses and emails were leaked. Later they said credit card details were too," he added.

 

He was worried as he knew he had used BA's site twice, and said that it was right that BA was being penalised for the incident.

 

Where does the money go?

The penalty is divided up between the other European data authorities, while the money that comes to the ICO goes directly to the Treasury.

 

It is up to individuals to claim money from BA, which provided no information on whether any compensation had been paid.

 

Under the regulations, authorities in the EU whose residents have been affected will also have the chance to comment on the ICO's findings.--BBC

 

 

 

Turkey's Erdogan fires central bank chief Murat Cetinkaya

Turkish President Recep Tayyip Erdogan has fired the governor of the central bank and replaced him with his deputy.

 

No official reason was given for the sacking of Murat Cetinkaya, who had held the position since April 2016.

 

However, it comes amid reports of disagreements over interest rates, which the government wants to lower in a bid to boost economic growth.

 

The announcement has prompted renewed concern over the central bank's independence.

 

Turkey: What you need to know

Why Erdogan's big ambitions could come tumbling down

Why is Turkey fighting the markets?

Mr Erdogan has called for interest rates to be lowered, describing them as the "mother and father of all evil". He has claimed that high interest rates cause inflation and believes that lowering them will improve growth.

 

But the central bank in September instead increased its benchmark interest rate from 17.5% to 24%, saying that doing so would help to battle inflation and boost the lira.

 

A "tight stance in monetary policy will be maintained decisively until inflation outlook displays a significant improvement", it said at the time.

 

Turkey's currency hit record lows in the past year, which has the effect of raising the prices for many everyday items. Mr Erdogan's public stance on interest rates - and perceived political interference with the central bank - was credited by many with the fall in the lira's value.

 

It also raises the cost of Turkey servicing its debt, which was driven up by the president's many major infrastructure projects, and that in turn has raised concerns of a potential economic crisis.

 

And a modest recovery in the lira's value so far in 2019 failed to protect Mr Erdogan's party from some electoral fallout in this year's local elections, in which he lost control of Istanbul.

 

Turkey's lira slump explained

Turkey raises interest rates to 24%

Two government sources told Reuters news agency on Saturday that the disagreement over monetary policy had deepened in recent months.

 

One said that Mr Erdogan and Finance Minister Berat Albayrak had privately demanded Mr Cetinkaya's resignation, but he had refused, citing the central bank's independence.

 

Mr Cetinkaya - whose four-year term was due to end in 2020 - will now be replaced by his deputy, Murat Uysal.

 

Some raised concerns over the bank's independence following the announcement.

 

"Removing the central bank's governor in this manner will deal a big blow to its institutional structure, capacity and independence," Ibrahim Turhan, a former deputy central bank governor, wrote on Twitter.

 

"Those who removed the central bank governor overnight have lost the right to demand confidence in the country's economy. The central bank is a captive being kept in the palace," said the main opposition party spokesman Faik Oztrak.

 

In his first statement as governor, Mr Uysal said the bank would continue to act independently and focus on maintaining price stability as its central goal.--BBC

 

 

 

How social media could ruin your business

Whether it comes from hackers, disgruntled customers, or is simply a backlash against something you post, negative social media content can destroy trust in your brand in a matter of minutes.

 

"Social media is the most immediate threat to your company's reputation," says Pete Knott, digital consultant at UK PR agency Lansons Communications.

 

"If not taken seriously it can and will directly impact your company financially and culturally."

 

Fake news remains one of the biggest challenges - despite machine learning crackdowns by networks such as Facebook and Twitter.

 

In May, for example, shares in the UK's Metro Bank plunged 11% before it could shake off inaccurate social media rumours that it was facing financial difficulties.

 

And according to Ilia Kolochenko of Geneva-based internet security company Immuniweb, the consequences could potentially be much worse.

 

'Dropping a bomb'

"Hackers can cause huge damage if they can find a way to post fake news on social media," he says.

 

"Imagine if they managed to hack into the BBC accounts and post a story about Iran dropping a nuclear bomb.

 

"The effects could be devastating - especially if other news networks picked up the story."

 

Social media posts don't have to be inaccurate to damage your brand, though. Sometimes, the truth hurts too.

 

In 2016, battery manufacturer Samsung SDI's market value plummeted by more than half a billion dollars when Tesla boss Elon Musk tweeted that the company was working with Panasonic on its next electric car.

 

If not properly thought out, your own posts can also cause problems, as US bank Chase found out earlier this year when it was accused of "poor shaming". It published a post suggesting customers with low bank balances save money by avoiding taking cabs and buying coffees.

 

Stealing your good name

Other threats include fraudsters taking your brand name in vain.

 

"Creative crooks often exploit big companies' names to run social media scams," Mr Kolochenko says.

 

"For example, they might set up an 'Amazon India Support' account on Twitter and ask customers who contact them about missing parcels to pay a customs fee."

 

And even posts by unknown customers can do a lot of damage if other users pick them up.

 

"Consumers have recognised that social media is a very fast way to get a response from customer services," says Claire Twohill, social media director at global PR agency FleishmanHillard.

 

"That's why social media attacks are often a direct result of a problem with the supply chain, or a change to a popular product.

 

"But whatever the reason, you need to react fast."

 

'Planning is crucial'

Masha Maksimava, a vice president at Belorussian social monitoring company Awario, says: "The key to online reputation management is handling negative feedback quickly to prevent it turning into crisis."

 

So it pays to be properly prepared.

 

"Planning is crucial," says Lopa Ghosh, an associate partner at global professional services provider EY.

 

Equally important, however, is not to overreact.

 

"You don't need to jump on every negative tweet," Ms Twohill says.

 

"Sometimes it's better to do nothing to avoid creating a crisis for no reason."

 

Either way, finding the right tone is key.

 

Get it spot on, and you might even be able to turn events to your favour.

 

Employee activity

"Social networks are a great place to rebuild reputation," Mr Knott says.

 

"So try to think about how you can use your response to a crisis to demonstrate your company's values and show its human side."

 

Employee activity is one of the biggest social media pitfalls.

 

Cyber criminals, for example, often use information gleaned from employees' social accounts to infiltrate an organisation.

 

Richard Horne, a cyber security partner at accountants PwC, says: "People expose a lot about themselves on social media.

 

"So attackers could look at someone's profile, see they love skiing and email them a malware link to a cheap chalet deal in Switzerland.

 

"It's a very common way of infecting companies' systems."

 

Passwords and posts

The challenge, therefore, is to manage how your employees use social media, without impinging on their rights.

 

"You can't monitor your employees' social media accounts - that's getting into very ethically murky waters," says Ms Ghosh.

 

"Instead, you have to educate them about passwords and what sort of thing they post."

 

It's also important to be clear about how they should respond - if at all - if the company becomes embroiled in a crisis.

 

 

Emma Harvey, founder of London-based reputation management specialist Seven Consultancy, says: "If an incident occurs, ensure that employees understand the protocol, and are not fanning the flames themselves by trying to defend the company online."

 

Take advantage of social monitoring tech

Monitoring, or listening, tools that use Application Programming Interfaces (APIs) provided by social networks to collect and analyse data can help you to build reputation and manage crises on social media.

 

"Setting up a social listening tool can be challenging, especially if your brand name is a common word such as Apple," Ms Maksimava says.

 

"So the main three things to look for are sentiment analysis, so you can handle negative mentions first; real-time results, so you can step in immediately; and flexibility, so you can exclude irrelevant mentions even if your keywords are ambiguous."

 

Just be careful to avoid invading people's privacy.

 

"There are definite benefits to using social listening tools, but it must be done in the right way," Mr Knott says.--BBC

 

 

 

Jaguar Land Rover announces electric car investment

Jaguar Land Rover (JLR) is investing hundreds of millions of pounds to build a range of electric vehicles at its Castle Bromwich plant in Birmingham.

 

Initially the plant will produce an electric version of the Jaguar XJ.

 

JLR says the move will help secure the jobs of 2,700 workers at the plant.

 

The news follows January's announcement, when the firm said it would cut 4,500 jobs, with the majority coming from the UK. That followed 1,500 jobs lost in 2018.

 

JLR has not announced when it will launch the battery version of the XJ, but it will replace the petrol and diesel versions which have been made since 1968.

 

The company's chief executive, Professor Ralph Speth, called on the government to put more effort into providing charging points for electric cars.

 

"The current charging infrastructure is not really sufficient to cover the country, nor the hotspots of the cities," he said in an interview with the BBC.

 

"The government has to govern the process," he added.

 

Electric cars 'will not solve transport problem'

'Grave concern' as sales of low emission cars fall

Why most people won't buy an electric car

'Confusing policies'

JLR's announcement comes a day after a report showed that in June sales of low emission cars had fallen for the first time in more than two years.

 

The Society of Motor Manufacturers and Traders said efforts to sell such cars were being undermined by confusing policies and "premature" removal of subsidies.

 

In response, the government said its focus on zero emission models had been a success, with registrations of battery electric vehicles up over 60% this year compared with the same period in 2018.

 

According to another report, even if the nation switches to electric vehicles, car use will still need to be curbed.

 

The Centre for Research into Energy Demand Solutions (CREDS) warned that electrifying cars will not address traffic jams, urban sprawl and wasted space for parking.

 

 

The investment decision by JLR appears to contradict previous warnings by the firm that investment in the UK would be threatened by Brexit, and in particular a no-deal scenario.

 

However, industry experts say that JLR could not wait to see the outcome of the Brexit, as it needed to update its range of vehicles.

 

"Given where it is in its product lifecycle it [JLR] has to make this decision. The capacity is at Castle Bromwich and there's research and development nearby as well, so they've basically run out of time on this decision," David Bailey, a professor of business economics at Birmingham Business School, told the BBC's Today programme.

 

Car investment slumps on Brexit 'red alert'

Jaguar Land Rover confirms 4,500 job cuts

He added that without the new investment the Castle Bromwich plant would "effectively be dead".

 

The plant also produces the Jaguar XF, XE and F-Type.

 

Business Secretary Greg Clark said: "Today's announcement is a vote of confidence in the UK automotive industry - protecting thousands of skilled jobs.

 

"It reflects our determination for the UK to be at the forefront of the development and manufacturing of the next generation of electric vehicles."

 

Investment in the UK car industry fell 47% last year from 2017 and the country is attracting a tiny fraction of the global investment in electric cars.

 

VW alone is investing £70bn in Europe, the US and China.

 

A no-deal Brexit would see new tariffs imposed on components and parts moving between the EU and the UK.

 

Vauxhall's parent company said that without a deal it would not make the next generation Astra at Ellesmere Port.--BBC

 

 

 

Stagnant productivity 'costs workers £5,000 a year'

The UK's productivity puzzle is costing private sector workers an estimated £5,000 a year on average in lost income, a top statistician has said.

 

Lower output per worker since the financial crisis had translated into "sluggish wage growth", said Katherine Kent, head of productivity at the Office for National Statistics (ONS).

 

Her comments came as the ONS published new productivity figures.

 

It said productivity fell 0.2% year-on-year in the first three months of 2019.

 

This was the third quarter in a row of negative growth compared with the same period a year earlier.

 

Productivity - as measured by the amount of work produced per working hour - is the main driver of long-term economic growth and higher living standards.

 

While the UK economy has recovered from the downturn triggered by the financial crisis, productivity growth has not rebounded.

 

Economists have struggled to understand why.

 

Possible explanations for the puzzle include low growth in investment by companies and an increase in the number of jobs in traditionally less productive sectors of the economy, such as food and drinks services.

 

Ms Kent said this inability to solve the productivity problem had held wages back.

 

"Productivity growth drives wages growth and has been historically low over the last decade," Ms Kent said.

 

"If productivity had grown in line with its long-term trend, and wages as a share of income had remained constant, average market sector wages would today be just over £5,000 higher in 2018 for the average worker."

 

The ONS said productivity in the first quarter of 2019 was 18.5% below its pre-downturn trend.--BBC

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


Edg Edgars

AGM

Edgars Training Auditorium, 1st Floor LAPF House, 8th Avenue/Jason Moyo St, Bulawayo

11 July 2019, 9am

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

 


 

 


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