Major International Business Headlines Brief::: 10 July 2019

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Major International Business Headlines Brief::: 10 July 2019

 


 

 


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*  Airtel Africa debuts in Lagos in $4.4 bln listing

*  South African platinum firms kick off wage talks

*  South African central bank stresses importance of independence

*  Construction firm wants debt settlement as part of Congo IMF deal

*  South Africa's rand steady as traders eye Fed, stocks down

*  Egypt's central bank seen holding key interest rates

*  Congo's Jan-May copper output slides 16%, cobalt down 21%

*  Could the next euro crisis come from Italy?

*  Chinese ethnic group biggest earners in the UK

*  Lady Gaga in exclusive Amazon deal to launch beauty range

*  France plans 'eco-tax' for air fares

*  UK watchdog plans to fine Marriott £99m

*  Pound heads for two-year low as holidays begin

*  Electric Mini production in Cowley to boost UK car industry

 

 


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Airtel Africa debuts in Lagos in $4.4 bln listing

LAGOS (Reuters) - Airtel Africa listed on the Nigerian Stock Exchange on Tuesday in a 1.36 trillion naira ($4.4 bln) flotation turning the telecoms company into the bourse’s third-largest stock by market value.

 

Airtel Africa’s shares climbed 10% from their listing price of 363 naira after the float went live. Some 100,000 shares traded at Tuesday’s debut, helping the main stock index recover from a seven-week low.

 

The company, owned 68.3% by India’s Bharti Airtel, offered shares in its African unit two weeks ago via a London IPO and said it would dual list in Nigeria, its biggest market in Africa.

 

Airtel Africa, which operates across 14 African countries, had planned to list last week but the bourse postponed the cross-border listing to allow the telecoms firm to meet its listing requirements.

 

Airtel’s listing comes after main rival, South Africa’s MTN, listed its Nigerian unit in Lagos in May in a $6.5 billion float that made it the second-largest stock on the bourse by market value.

 

It also becomes the second company to list in London and Lagos following an IPO by oil firm Seplat.

 

Airtel Africa’s existing shareholders include Singapore’s Temasek, Japan’s SoftBank, Singtel and U.S. investment firm Warburg Pincus.

 

The local bourse has said Airtel shares registered in Britain may be moved from the London market to Nigeria subject to approval by the custodians in London and foreign exchange rules in Nigeria. But Airtel shares registered in Nigeria cannot be moved to London, it said.

 

 

 

 

 

 

 


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South African platinum firms kick off wage talks

JOHANNESBURG (Reuters) - The world’s top platinum miners kicked off talks with South Africa’s unions on Tuesday in what is expected to be a tough round of wage talks, as a rise in profits is likely to provoke higher wage demands.

 

The majority union in the platinum sector, the Association of Mineworkers and Construction Union (AMCU), said it had presented its demands to Anglo American Platinum (Amplats) and would do the same to the rest of the firms this week.

 

“It is important that they look at their employees wages and there is nothing really they can cry foul of, we are hopeful that they will look into lending an offer that is reasonable,” said AMCU General Secretary Jimmy Gama.

 

AMCU has demanded a hike of 17,000 rand ($1,145) per month, or around 48%, for its members.

 

Sibanye-Stillwater, which is set to meet the union this week, said the platinum price has remained depressed and that the current demand was not sustainable for the miners.

 

“There has been decades of under investment in capital and that is why there has been mine closures in the last few years. You cannot pay out everything in higher wages we need to also invest in the sustainability of the industry if we want to preserve jobs in the long term,” said Sibanye spokesman James Wellsted.

 

Amplats and Impala Platinum declined to comment on the negotiations.

 

Africa’s most industrialised country has the biggest and most lucrative platinum reserves but a strike in 2014 cost the industry billions and forced firms to cut jobs and shed mines after a supply glut weighed on platinum prices.

 

Negotiations may be tough, however, as higher prices for palladium and rhodium and a weaker rand currency have boosted profits at miners such as Amplats, Sibanye - now combined with Lonmin - and Implats after several years of losses.

 

“Amplats will probably be under the most pressure as their earnings and share price have run the most this year of the bunch,” said Peter Major, an analyst and director of mining at Mergence Corporate Solutions.

 

Amplats last month flagged that its half-year earnings is expected to rise by at least 80%, boosted by the increased metals price.

 

 

South African central bank stresses importance of independence

PRETORIA (Reuters) - The South African central bank’s independence is an important check on government-controlled fiscal policy, a central bank deputy governor said on Tuesday, following a high-profile row over the role of the bank.

 

Some senior officials in the governing African National Congress (ANC) party have this year called for the South African Reserve Bank (SARB) to explicitly target economic growth and job creation.

 

But other ANC officials aligned with President Cyril Ramaphosa rejected the call to change the bank’s mandate and reassured investors that the independence of the SARB was not under threat.

 

“In the South African context we do feel an independent bank is an important check in the equation. ... Our system has given government the fiscal policy levers,” SARB Deputy Governor Kuben Naidoo said in a public lecture.

 

Naidoo said monetary policy needed to assess whether the economy was “too cold or too hot” and whether fiscal policy was acting normally.

 

He added that higher levels of debt and higher deficits had introduced risks into the economy, like a higher price of capital, which had to be taken into account.

 

“Monetary policy has to take a broader view than just inflation. It’s an obvious point but it often goes unsaid in macroeconomic discussion,” he said.

 

 

 

Construction firm wants debt settlement as part of Congo IMF deal

JOHANNESBURG (Reuters) - Construction firm Commisimpex is calling upon the International Monetary Fund (IMF) to make settlement of its 1.2 billion euro ($1.35 billion) debt dispute with Congo Republic a precondition for a bailout deal, according to a letter seen by Reuters.

 

Congo’s negotiations for an IMF bailout programme have dragged on since 2017. The Fund’s executive board is due to consider a bailout for Congo on Thursday after the government agreed to restructure a portion of its debt to China.

 

The IMF had also required Congo - an oil producer and OPEC member - to make progress towards restructuring debt owed to oil trading companies.

 

Commisimpex, which worked on construction and public works projects from the early 1980s until a Congolese court ordered its liquidation in 2012, said debt stemming from decades-old unpaid bills must also be taken into account.

 

“The IMF has required the Congo to negotiate with the two other significant groups of creditors with which it is in default. It is patently unfair that the IMF appears to be favouring one set of creditors over others,” the letter said.

 

The letter, dated July 5, was sent by Commisimpex’s lawyers and addressed to the IMF’s acting Managing Director David Lipton and director of its African department Abebe Selassie.

 

The IMF did not immediately comment on the letter.

 

Congo’s government spokesman Thierry Moungalla said he would not comment on Commisimpex.

 

Commisimpex wrote that the IMF should demand that Congo fully and properly record its debt to the company in its public accounts as a precondition for granting the bailout programme.

 

It also said the Fund should demand Congo disclose the payment scenario of that debt under the debt sustainability analysis prepared with IMF staff.

 

And finally, it said the IMF should require Congo to engage in negotiations with Commisimpex over the payment of the debt.

 

Commisimpex has pursued Congo in courts in Europe and the United States for two decades, winning a series of court decisions as it has attempted to recoup the debt.

 

Congo has not paid, however. And in 2012, the country said the firm owed 1.3 billion euros in social security payments built up over 30 years. A Congolese court then ordered the firm into liquidation.

 

($1 = 0.8915 euros)

 

 

 

South Africa's rand steady as traders eye Fed, stocks down

JOHANNESBURG (Reuters) - South Africa’s rand steadied against the dollar on Tuesday, struggling for momentum as investors awaited clues on U.S. monetary policy from the Federal Reserve officials and domestic data. Stocks closed lower.

 

At 1500 GMT the rand was trading at 14.1700 per dollar, after closing at 14.1900 on Monday.

 

Trading was largely muted ahead of U.S. Federal Reserve Chairman Jerome Powell’s testimony to the Congress and release of minutes on Wednesday from the U.S. central bank’s last policy meeting.

 

“Jerome Powell’s biannual testimonies, FOMC meeting minutes, U.S.-China trade developments and global sentiment will certainly dictate where the rand concludes this week,” Lukman Otunuga, research analyst at FXTM, said in a note.

 

“On Thursday, there will be a strong focus on South Africa’s manufacturing production figures which will provide further insight into the health of Africa’s most industrialised economy. Anything below market forecast will most likely be negative for the rand.”

 

Emerging markets have enjoyed capital inflows this year on signs major central banks will embrace a looser monetary policy as a result of trade disputes and growth concerns.

 

However, strong U.S. jobs data on Friday all but ended expectations of a bold interest rate cut from the Fed at its meeting this month, leaving investors in search of hints on where rates are headed.

 

On the bourse, the Top-40 index fell 1.43% while the broader all-share was down 1.37%.

 

In fixed income, the yield on the benchmark 2026 government issue fell 1.5 basis points to 8.105%.

 

 

 

Egypt's central bank seen holding key interest rates

CAIRO (Reuters) - Egypt’s central bank is likely to maintain interest rates at their current level on Thursday, a Reuters poll showed, as analysts foresaw a spike in inflation after a hike in fuel prices last week.

 

 

Of 15 economists surveyed by Reuters, 14 said the bank’s monetary policy committee was unlikely to change its overnight rates, with deposits at 15.75% and lending at 16.75%.

 

“Higher domestic fuel and electricity prices in July will raise inflationary pressures further in H2,” said Nadene Johnson, an economist at NKC African Economics.

 

“Nonetheless, there appears to be limited demand-side inflationary pressure because of low real earnings, which could mitigate some of the expected supply-side inflation.”

 

Scaling back fuel subsidies that have strained the budget for decades was a key plank of a three-year, $12 billion reform package signed with the International Monetary Fund in 2016.

 

Egypt’s economy had been struggling to recover from the turmoil that followed its 2011 uprising.

 

Other measures agreed under the loan include a sharp devaluation of the currency and the introduction of a value-added tax.

 

“Inflation edged higher in May and upcoming reform measures (fuel/energy subsidy cuts) will likely keep the CBE on a holding pattern over the next few months,” Bryan Plamondon, IHS Markit global economics director focusing on the Middle East and North Africa, said before the fuel price hikes on Friday.

 

The poll was conducted from June 30 to July 8.

 

Headline inflation accelerated to 14.1% in May from 13% in April. It had fallen in April from 14.2% in March.

 

Core inflation, which strips out volatile items such as food, fell in May to 7.8% from 8.1% the previous month.

 

“Inflation will spike MoM (month-on-month) in July-September, but the annual rate will be supported by the base effect, capping the reading at 14-15%,” said Radwa El-Swaify, head of research at Pharos Securities Brokerage.

 

“In light of the delay in energy subsidy cuts, and the fact that June has passed without any movement in energy prices, we expect June inflation to record c. 1.0-1.5% MoM and 11.2-11.8% YoY, which will be a significant drop in inflation.”

 

The government had told the IMF it would remove subsidies entirely from most fuel products by June 15 after increasing fuel prices steadily over the past four years.

 

It did not explain the delay, but austerity measures are politically sensitive and have dented the popularity of President Abdel Fattah al-Sisi.

 

The central bank kept interest rates steady at its last two meetings, in May and March, after a surprise 100 basis points cut in February.

 

Several analysts said the CBE was likely to wait until the fourth quarter of 2019 to cut rates, given the impact of the fuel subsidy cuts and concerns over global trade.

 

“We now expect the next window to cut the bank rates is several months away,” said Angus Blair, chairman of business and economic forecasting think-tank Signet.

 

NKC’s Johnson said: “The dovish stance by the US Fed supports further rate cuts by the CBE in the coming year.”

 

 

 

Congo's Jan-May copper output slides 16%, cobalt down 21%

DAKAR (Reuters) - Copper production in Democratic Republic of Congo, Africa’s top producer, fell by 16.2% year-on-year in the January to May period, while cobalt output slid 21.5%, the central bank said on Tuesday.

 

Copper output for the first five months of 2019 stood at 416,067 tonnes compared to 496,468 tonnes in the same period of last year, the bank said. Cobalt production was 33,967 tonnes, compared to 43,291 tonnes last year.

 

Gold production fell 6.4% to 13,511 kg.

 

 

 

Could the next euro crisis come from Italy?

While it's easy to get distracted by trade wars or Brexit uncertainty, there's a financial iceberg on the horizon that could threaten all our well-being.

 

Over the years, Italy's government has built up more than £2 trillion of debt - more than 130% of its annual income, or GDP.

 

A spending binge in the 1970s and 1980s, together with a host of other factors, has resulted in the third-largest national debt in the world.

 

That's way above the amount that the European Commission - which sets rules on how much members of the eurozone can borrow - is comfortable with.

 

The current populist government's intention to tax less and spend more, resulting in a hefty annual deficit, has put it on a clear collision course with Brussels.

 

The Commission decided not to fine Italy for its profligate ways for now, but on the basis that the government should look at ways to reduce its borrowing.

 

In an exclusive interview with the BBC, the governor of the Bank of Italy agreed his government's debt was too high and needed tackling.

 

But Ignazio Visco admitted: "There is uncertainty now on how to deal with it. And the markets are making us pay for that."

 

More investment?

Curbing public debt means reforms to tax and/or spending, both of which will be hugely unpopular in a nation where wages have failed to keep up with the cost of living in recent years.

 

Italy has struggled to remain out of recession. Mr Visco labelled economic growth in his nation over the last 20 years "dismal".

 

To safeguard Italy's future, he admits more public investment in infrastructure is needed.

 

But that may not be possible. Brussels isn't being fussy: the highly integrated nature of Europe and the global financial system means that loose money management in Italy isn't an option.

 

EU warns Italy over rising debt

Warning over 'new eurozone crisis'

The vast majority of Italy's debt is held by banks, the majority within its own borders. But a significant chunk is held by banks in other part of Europe.

 

Concerns about Italy's financial position have already driven up the government's cost of borrowing.

 

A full-blown crisis of confidence among investors over Italy's credibility could hit the fortunes of all those banks, as well as their ability to lend to businesses and households across the region.

 

Strong tensions

All this comes at a time when Europe's other major economies - Germany, France and the UK - are seeing lacklustre growth.

 

The Bank of England has warned of a doom loop. That's the risk of a budget crisis spilling over into a financial one which threatens stability across the region.

 

So the pressure to play by the Commission's rules is immense - much to the frustration of ordinary Italians. Mr Visco acknowledges the system is problematic, saying: "We are in a moment in which the European design certainly is not at its height.

 

"So there are tensions, there are strong tensions, and each country has its own tensions."

 

He is confident that Italy can get to grips with the issue in time: "It is a country which has somehow proved that it can put its act together."

 

If not, it won't just be Italians who pay the price.--BBC

 

 

 

Chinese ethnic group biggest earners in the UK

Chinese and Indian ethnic group workers have higher average earnings than their white British counterparts, the first detailed official figures show.

 

But the data on the ethnicity pay gap, showed all other ethnic groups have lower wages than white British workers.

 

The Office for National Statistics said employees in the Bangladeshi ethnic group have the largest pay gap, earning 20% less than white British employees.

 

On average, ethnic minorities earn 3.8% less than white ethnic groups.

 

The categories are the official ones used by ONS.

 

In 2018, employees from the Chinese ethnic group earned 30.9% more than white British employees.

 

Hugh Stickland, senior ONS analyst, said: "Overall, employees from certain ethnic groups such as Indian and Chinese, have higher average earnings than their white British counterparts.

 

"However, all other ethnic groups have average wages lower than for white British employees, with employees from the Bangladeshi ethnic group having the largest pay gap.

 

"However, once characteristics such as education and occupation are taken into account, the pay gap between white British and most other ethnic groups becomes narrower, though significant differences still remain."

 

Bangladeshis are the UK's lowest earners

The data - based on median gross hourly earnings between 2012 and 2018 - shows that the Chinese ethnicity group is the highest paid, receiving £15.75 an hour in 2018.

 

That group is followed by the Indian ethic group - which earns £13.47 an hour - and mixed/multiple ethnicity group, with a £12.33 hourly pay rate.

 

The median pay of the white British group was £12.03. The Bangladeshi group had the lowest median hourly pay of £9.60 with the second-lowest paid group being of Pakistani origin at £10 an hour.

 

The data comes after a report last year from the Resolution Foundation found black and ethnic minority workers were paid significantly less than their white counterparts.

 

"The harsh reality is that even today race still plays a real role in determining pay," said Frances O'Grady, general secretary of the TUC.

 

"Ministers must take bold action to confront inequality and racism in the labour market. The obvious first step is to introduce mandatory ethnicity pay gap reporting without delay," she said.

 

The government has consulted on whether mandatory reporting will help address disparities between the pay and career prospects of minorities.

 

The female gap

The government has already introduced mandatory reporting on the gender pay gap - which stands at 9.6% in favour of men - and the ONS data also shows discrepancies in male and female earnings in the ethnic groups.

 

The Chinese and Indian groups, which both have the highest rate of hourly pay, were among those with the biggest gender gaps.

 

Chinese men on average earned 19.1% more than women and Indian men earned 23.2% more than women.

 

But women in the Bangladeshi ethnic group earn more than their male counterparts - with a 10.5% gap.

 

The ONS said, though, that the sample size for the Bangladeshi group was smaller and susceptible to inaccuracy compared with other ethnic groups.

 

London's gap

London, which has the highest proportion of its population classified as an ethnic minority group, also has the largest pay gap of 21.7%.

 

The ONS found this gap was reversed in other parts of Britain. In the north-east of England, for instance, employees from an ethnic minority group had average earnings that were 6.5% more than the average earnings of white employees.

 

Birth-place divide

The ONS says that where someone is born can have an influence on how much they are paid.

 

"By comparing those who were born in the UK and those who were not, it may give us an idea of what sort of effect having a UK education and the higher likelihood of speaking English as a first language may have on those from an ethnic minority background," the ONS said.

 

It found those in the Bangladeshi ethnic group - who had been born in the UK - earned 8% less than white British employees. But for Bangladeshi employees born outside the UK the gap was 26.8%.

 

When taking other factors into account, such as education, UK-born employees in the Indian and Chinese ethnic groups do not have pay gaps that are "statistically different" from the UK-born white British employees, the ONS found.

 

For example, almost a third of workers in the Indian ethnic group work in professional roles which means they tend to be higher-paid.--BBC

 

 

 

Lady Gaga in exclusive Amazon deal to launch beauty range

As an unconventional artist, Lady Gaga is taking the same approach to her new make-up line - by launching it exclusively through Amazon.

 

The Oscar-winning songwriter's Haus Laboratories will become the first major cosmetics brand to be launched by the online retail giant.

 

The deal means Lady Gaga's first business venture will have a global reach from the outset.

 

Amazon will launch Haus simultaneously in nine countries in September.

 

They will include the UK, the US, Japan, France and Germany;

 

In recent years, new beauty lines have chosen to bypass traditional bricks and mortar stores by launching online, including Kylie Cosmetics, the range owned and run by Kylie Jenner that has helped make her a billionaire.

 

Commenting on why she has chosen Amazon, Lady Gaga told The Business of Fashion news site that some companies would have wanted her to tailor the brand to fit in with their corporate image.

 

"If it's not perfectly in line with what they do... they'll be like, 'Can you just change half of the equation?'. The answer is no. No deal. No message of self-acceptance, no deal. [The deal with Amazon] was so wonderful because this was like, 'Let's make a deal, let's make a deal to change the world with their beauty'."

 

Haus Laboratories is being backed by Lightspeed Ventures Partners, whose other investments include Goop, the "modern lifestyle brand" site owned by actress Gwyneth Paltrow.

 

Lady Gaga said: "The last thing the world needs is another beauty brand... but that's too bad."

 

The product line, she said, is aimed at everyone. "They say beauty is in the eye of the beholder, but at Haus Laboratories we say beauty is how you see yourself."---BBC

 

 

 

France plans 'eco-tax' for air fares

France is set to introduce an "eco-tax" for all flights from French airports, the government has said.

 

The tax is expected to raise about €180m ($202m; £162m) from 2020, said Transport Minister Elisabeth Borne.

 

The amount of the tax will depend on the type of ticket being bought.

 

Economy class tickets on flights within France or the EU will have a tax of €1.50 imposed. Business class tickets for flights out of the EU will have the highest tariff of up to €18.

 

"We have decided to put in place an eco-tax on all flights from France," Ms Borne said during a news conference on Tuesday.

 

The tax will only apply to outgoing flights and not to those flying into the country.

 

Ms Borne said the money raised by the tax will be invested in in less-polluting transport, such as rail.

 

Pollution set to grow

The French government has tried to tighten environmental regulation, but last year abandoned its plans for fuel tax rises after the widespread protests from the "yellow vests" ("gilets jaunes").

 

The airline industry is also introducing its own initiatives to try and reduce pollution.

 

The Carbon Offsetting and Reduction Scheme for International Aviation requires airlines to monitor and report their emissions from this year.

 

The full scheme will start in 2021.

 

The European Union says that without any action, CO2 emissions from aviation are set to grow by up to 300% by 2050.--BBC

 

 

 

UK watchdog plans to fine Marriott £99m

The UK's data privacy regulator has said it plans to fine the US hotel group Marriott International £99.2m.

 

The penalty relates to a data breach that resulted in about 339 million guests having had their personal details exposed.

 

The incident is thought to date back to 2014 but was only discovered in 2018.

 

It comes a day after the Information Commissioner's Office (ICO) said it planned to fine British Airways £183m over a separate breach.

 

The size of both penalties reflects the fact that the watchdog has greater powers as a result of the EU's General Data Protection Regulation (GDPR), which came into force last year.

 

The Marriott data breach included 30 million guest records belonging to Europeans. It occurred within Starwood - a rival hotel group that Marriott acquired three years ago. The compromised guest reservation system has since been phased out.

 

Marriott International's president, Arne Sorenson, said: "We are disappointed with this notice of intent from the ICO, which we will contest. Marriott has been co-operating with the ICO throughout its investigation into the incident, which involved a criminal attack against the Starwood guest reservation database.

 

"We deeply regret this incident happened. We take the privacy and security of guest information very seriously and continue to work hard to meet the standard of excellence that our guests expect from Marriott."

 

The ICO said that Marriott had failed to properly review Starwood's data practices and should have done more to secure its systems.

 

"The GDPR makes it clear that organisations must be accountable for the personal data they hold," said Information Commissioner Elizabeth Denham.

 

"This can include carrying out proper due diligence when making a corporate acquisition, and putting in place proper accountability measures to assess not only what personal data has been acquired, but also how it is protected."

 

Security company CyberInt's lead researcher Jason Hill said: "The draconian fines.. are a wake-up call to all organisations, big and small."

 

"Although this may come as a blow to a company such as BA or Marriott, they are robust enough to weather the storm. A smaller organisation suffering a serious breach could find itself overwhelmed by any penalty which, when combined with the loss of consumer confidence and the associated reputational damage -with devastating consequences for its business."--BBC

 

 

 

Pound heads for two-year low as holidays begin

The pound is heading for two-year lows against the dollar as markets react to continuing Brexit uncertainty and signs that the UK economy is slowing.

 

The currency fell sharply after data showed slowing sales at UK retailers and economists forecast a contraction in the economy in the second quarter.

 

Against the dollar, the pound fell below $1.25 and was close to its lowest level since April 2017.

 

The pound was also at a six-month low against the euro at just above €1.11.

 

With the holiday season getting underway, it means travellers from the UK will getting fewer dollars and euros for their pounds.

 

Sterling has been swayed by uncertainty in the aftermath of the EU referendum, but has been more stable in recent months because of confidence about the UK economy.

 

However, recent economic surveys have suggested that the economy may now be weakening and Jane Foley, head of foreign exchange strategy at Rabobank, said this was being factored into the market.

 

"The economic picture is not particularly pretty," she said.

 

The pound fell 0.5% against the dollar at $1.2455, marking the lowest point for it since April 2017, excluding a brief "flash fall" in January this year.

 

Back in May, the pound had been trading at around $1.27.

 

Pound v dollar

 

Last week, a survey suggested the UK's manufacturing sector contracted at the fastest pace for more than six years.

 

On Tuesday, figures from the British Retail Consortium showed average sales growth slowed to 0.6% in the 12 months to June, the weakest reading since its records began in 1995.

 

Ms Foley also cited a survey by Bloomberg which showed that economists are expecting the economy to contract in the second quarter - for the first time since 2012.

 

An update on the UK economy is due on Wednesday when growth data for the three-month period to May will be released, and economists polled by Reuters expect growth of 0.1%.

 

That would be slower than the 0.5% rate seen in the first quarter of the year.

 

Pound v euro

 

The market is also focusing on the Conservative leadership contest. Under Theresa May's premiership, the market had thought the chances of a no-deal were slim, but Ms Foley said that was not the expectation if Boris Johnson wins the leadership battle.

 

"That's what the market is worried about," she said.

 

Neil Mellor, currency strategist at Bank of New York Mellon, said that another factor at play was a strengthening in the dollar ahead of testimony by the head of the US central bank. This was helping to push the pound lower.

 

Jerome Powell, chair of the Federal Reserve, testifies to the US Congress on Wednesday. Mr Mellor said he could provide a more hawkish tone - meaning interest rate cuts were less likely - than previously expected.--BBC

 

 

Electric Mini production in Cowley to boost UK car industry

BMW has given a boost to the UK car industry by confirming that the production of its new electric Mini will start in Cowley in November.

 

Deliveries of the brand's first fully electric car will start in March 2020.

 

Earlier this year, a BMW board member said the company would have to consider moving car production out of the UK if there was a no-deal Brexit.

 

But David George, head of Mini UK, told the BBC the UK was firmly in the company's plans going forward.

 

"It is too early to say what the impact of Brexit will be," he told the BBC. "But as a business, we have committed and invested heavily over recent years in our production facilities in the UK, so we remain committed to UK production.

 

"The team here at Plant Oxford are incredibly proud that it's been chosen to be the plant to launch the first all-electric Mini."

 

When asked if that meant the company would still be producing cars in the country in 10 years' time, he said: "It is impossible to see that far ahead.

 

"However, the UK is an important part of our capacity requirements for the future."

 

Wireless electric car charging gets cash boost

Five reasons the car industry is struggling

Car industry: What's behind recent closures?

The new bit of the electric Mini - the drivetrain - will be produced in Dingolfing in Bavaria, before being brought to Cowley to be added into the car.

 

"We source components for the cars in multiple places," Mr George added. "We do our body pressings in Swindon, so we make the best of what we can from across different manufacturers. But we're delighted to be producing the car here in Oxford."

 

The news comes after announcements this year about Ford proposing to close its plant in Bridgend and Honda revealing plans to shut its plant in Swindon, with the loss of about 3,500 jobs.

 

BMW originally announced that Cowley would be the production base for the car in the summer of 2017.

 

Earlier that year, though, its chief executive had warned that the company needed to remain "flexible" about its production facilities because of Brexit uncertainty.

 

The state-of-the art automated Cowley plant has more than 1,000 robots on the assembly line and produces a car about once a minute.

 

 

It was a fairly low-key launch for what could be a vital car for the Mini brand, driven through the Cowley factory before a handful of press.

 

Over the next few years, EVs are going to become a much more common sight on our roads. New emissions legislation means that from 2021, carmakers will not only have to build zero-emission cars - they'll have to sell them as well.

 

There's plenty of competition for the new Mini in the pipeline. Purpose-built electric cars, designed from a fresh sheet of paper.

 

The Mini isn't like that. It's a standard body shell, adapted to take the German-built electric drivetrain. After all, a Mini has to look like a Mini. And even though the brand is German-owned, it has to resonate British character.

 

The question then, is whether the company's engineers have managed to build a car that looks and feels like a Mini - but which can still take on the best other manufacturers can offer.

 

'Environmental challenges'

The Mini its celebrating its 60th anniversary this year. The new electric Mini is based on the same body shell as the current petrol model.

 

Unlike some other electric cars, the capacity of the boot is the same as in the petrol Minis - up to 731 litres when the rear backrests are folded down.

 

On a full charge, it has a minimum range of 124 miles and a maximum of 144 miles.

 

At present, the UK has a network of more than 24,000 public charging connectors in nearly 9,000 locations, according to figures from the Department for Transport.

 

How prepared is your area for electric cars?

Average distance between charging locations

Tap or click for more details

 

 

In a statement, BMW said the car was being launched "as the world faces new environmental, social and economic challenges".

 

It added that the car was "every inch a Mini, with performance close to the hot-hatch Mini Cooper S. It is temptingly priced and demand is expected to be strong".

 

Mr George added: "Mini has its own customer base. The new car is first and foremost a Mini with all the things that people love about the Mini - its iconic design and the performance and go-kart handling - but with all the benefits of electric.

 

"So that means zero emissions and low running costs."

 

BMW board member Oliver Zipse, previously the plant director at Cowley, said: "We are entering an era in which electric cars will become a normal choice for our customers.

 

"By 2023, two years ahead of schedule, we will have 25 electrified models on the market. More than half of them will be fully electric".--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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